Question
Consider the following information: Rate of Return if State Occurs State of Economy Probability of...
|
Consider the following information: |
| Rate of Return if State Occurs | |||
| State of Economy | Probability of State of Economy | Stock A | Stock B |
| Recession | .10 | .04 | –.20 |
| Normal | .60 | .09 | .13 |
| Boom | .30 | .15 | .36 |
|
Calculate the expected return for Stock A. |
|
Calculate the expected return for Stock B. |
|
Calculate the standard deviation for Stock A. |
|
Calculate the standard deviation for Stock B. |
Homework Answers
Answer #1
Not the answer you're looking for?
Similar Questions
Consider the following information: Rate of Return if State Occurs State of Economy Probability of...
Consider the following information:
Rate of Return if State Occurs
State of Economy
Probability of State of Economy
Stock A
Stock B
Recession
.20
.04
–.22
Normal
.70
.09
.16
Boom
.10
.15
.31
Calculate the expected return for Stock A.
Calculate the expected return for Stock B.
Calculate the standard deviation for Stock A.
Calculate the standard deviation for Stock B.
Consider the following information: Rate of Return if State Occurs State of Economy Probability of...
Consider the following information:
Rate of Return if State Occurs
State of Economy
Probability of State of Economy
Stock A
Stock B
Recession
.10
.04
–.21
Normal
.50
.09
.15
Boom
.40
.15
.35
Calculate the expected return for Stock A.
Calculate the expected return for Stock B.
Calculate the standard deviation for Stock A.
Calculate the standard deviation for Stock B.
Consider the following information: Rate of Return if State Occurs State of Economy Probability of...
Consider the following information:
Rate of Return if State Occurs
State of Economy
Probability of State of Economy
Stock A
Stock B
Recession
.10
.04
–.19
Normal
.60
.09
.15
Boom
.30
.15
.31
Calculate the expected return for Stock A.
10.30%
9.35%
10.82%
9.28%
10.71%
Calculate the expected return for Stock B.
16.40%
9.00%
17.22%
15.58%
17.06%
Calculate the standard deviation for Stock A.
3.41%
2.41%
3.58%
3.24%
3.54%
Calculate the standard deviation for...
Consider the following information: Rate of Return if State Occurs State of Economy Probability of...
Consider the following information:
Rate of Return if State Occurs
State of Economy
Probability of State of Economy
Stock A
Stock B
Recession
.10
.05
–.23
Normal
.60
.08
.14
Boom
.30
.13
.32
Calculate the standard deviation for Stock A.
Calculate the standard deviation for Stock B.
Consider the following information: Rate of Return if State Occurs State of Probability of Economy...
Consider the following information:
Rate of Return if State Occurs
State of
Probability of
Economy
State of Economy
Stock A
Stock B
Recession
.10
.04
−
.17
Normal
.60
.09
.12
Boom
.30
.17
.27
a.
Calculate the expected return for Stocks A and B. (Do
not round intermediate calculations and enter your answers as a
percent rounded to 2 decimal places, e.g., 32.16.)
b.
Calculate the standard deviation for Stocks A and B.
(Do not round intermediate...
Consider the following information: Rate of Return if State Occurs State of Probability of Economy...
Consider the following information:
Rate of Return if State Occurs
State of
Probability of
Economy
State of Economy
Stock A
Stock B
Recession
.10
.04
−
.17
Normal
.60
.09
.12
Boom
.30
.17
.27
a.
Calculate the expected return for Stocks A and B. (Do
not round intermediate calculations and enter your answers as a
percent rounded to 2 decimal places, e.g., 32.16.)
b.
Calculate the standard deviation for Stocks A and B.
(Do not round intermediate...
Consider the following information: Rate of Return if State Occurs State of Economy Probability of...
Consider the following information:
Rate of Return if State Occurs
State of Economy
Probability of State of Economy
Stock A
Stock B
Recession
.10
.06
–.21
Normal
.70
.08
.16
Boom
.20
.16
.34
Calculate the expected return for Stock A.
Calculate the expected return for Stock B.
Calculate the standard deviation for Stock A.
Calculate the standard deviation for Stock B.
Consider the following information: Rate of Return If State Occurs State of Probability of Economy State...
Consider the following information:
Rate of Return If State Occurs
State of
Probability
of
Economy
State of
Economy
Stock A
Stock B
Recession
.25
.04
–.17
Normal
.30
.10
.17
Boom
.45
.15
.37
a.
Calculate the expected return for the two stocks. (Do
not round intermediate calculations. Enter your answers as a
percent rounded to 2 decimal places. Omit the "%" sign in your
response.)
Expected return for
A
%
Expected return for
B
%
b.
Calculate...
Consider the following information: Rate of Return if State Occurs State of Economy Probability of State...
Consider the following information:
Rate of Return if State Occurs
State of Economy
Probability of State of Economy
Stock A
Stock B
Stock C
Boom
.30
.20
.36
.27
Good
.35
.17
.24
.09
Poor
.20
−.01
−.09
−.04
Bust
.15
−.09
−.20
−.10
a. Your portfolio is invested 30 percent each
in Stocks A and C and 40 percent in Stock B. What is the expected
return of the portfolio? (Do not round intermediate
calculations. Enter your answer as...
Consider the following information: Rate of Return if State Occurs State of Economy Probability of...
Consider the following information:
Rate of Return if State Occurs
State of Economy
Probability of
State of Economy
Stock A
Stock B
Stock C
Boom
.15
.32
.42
.33
Good
.45
.19
.13
.12
Poor
.30
–.05
–.08
–.06
Bust
.10
–.16
–.28
–.09
Your portfolio is invested 30 percent each in A and C, and 40
percent in B. What is the expected return of the portfolio?
What is the variance of this portfolio?
What...
ADVERTISEMENT
Need Online Homework Help?
Get Answers For Free
Most questions answered within 1 hours.
ADVERTISEMENT
Active Questions
asked 2 minutes ago
asked 15 minutes ago
asked 36 minutes ago
asked 40 minutes ago
asked 40 minutes ago
asked 40 minutes ago
asked 43 minutes ago
asked 48 minutes ago
asked 51 minutes ago
asked 53 minutes ago
asked 57 minutes ago
asked 1 hour ago