Question

Calculating Returns and Standard Deviations Based on the following information, calculate the expected return and standard...

Calculating Returns and Standard Deviations Based on the following information, calculate the expected return and standard deviation for the two stocks:

State Of economy

Probability of state of economy

Rate of returns if state occurs

Stock A

Stock B

Recession

.25

.06

-.20

Normal

.55

.07

.13

Boom

.20

.11

.33
Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Problem 13-7 Calculating Returns and Standard Deviations [LO1] Consider the following information: Rate of Return If...
Problem 13-7 Calculating Returns and Standard Deviations [LO1] Consider the following information: Rate of Return If State Occurs State of Probability of Economy State of Economy Stock A and Stock B Recession .17 .06 -.17 Normal .50 .09 .12 Boom .33 .14 .29 Calculate the expected return for each stock. Calculate the standard deviation for each stock.
Based on the following information, calculate the expected return and standard deviation for two stocks: State...
Based on the following information, calculate the expected return and standard deviation for two stocks: State of the Economy Probability Rate of Return Stock A Rate of Return Stock B Recession .25 .05 -.19 Normal .50 .06 .14 Boom .25 .10
Based on the following information:    Rate of Return If State Occurs   State of Probability of...
Based on the following information:    Rate of Return If State Occurs   State of Probability of   Economy State of Economy Stock A Stock B   Recession .17 .06 – .17   Normal .50 .09 .12   Boom .33 .14 .29    Calculate the expected return for the two stocks. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)    Expected return   Stock A %   Stock B %    Calculate the standard deviation for...
Based on the following information, calculate the expected return and standard deviation and variance for two...
Based on the following information, calculate the expected return and standard deviation and variance for two stocks: This is what i have so far and i am stuck if someone can check my work so far and help me fill in the rest thanks State of the Economy   Probability   Rate of Return Stock A   Rate of Return Stock B   Recession .25 .05 -.19 Normal .50 .06 .14 Boom .25 .10 .34 Stock A Probability Return Product Return Deviation Squared Deviation...
P13-7 Calculating Returns and Standard Deviations [LO1] Consider the following information:    Rate of Return if...
P13-7 Calculating Returns and Standard Deviations [LO1] Consider the following information:    Rate of Return if State Occurs   State of Economy Probability of State of Economy Stock A Stock B   Recession 0.20 0.06 -0.20   Normal 0.70 0.09 0.17   Boom 0.10 0.14 0.32    Required: (a) Calculate the expected return for Stock A. (Do not round your intermediate calculations.) (Click to select)8.90%9.19%10.60%11.37%8.01%    (b) Calculate the expected return for Stock B. (Do not round your intermediate calculations.) (Click to select)11.10%9.67%12.65%10.54%11.54%   ...
Based on the following information, what is the standard deviation of returns? State of Economy Probability...
Based on the following information, what is the standard deviation of returns? State of Economy Probability of State of Economy Rate of Return if State Occurs Recession .21 -.113 Normal .24 .128 Boom .55 .238
A. Use the following information on states of the economy and stock returns to calculate the...
A. Use the following information on states of the economy and stock returns to calculate the expected return for Dingaling Telephone: (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)   State of   Economy Probability of State of Economy Security Return If State Occurs   Recession .40 –5.50 %   Normal .40 11.00   Boom .20 17.00 B. Use the following information on states of the economy and stock returns...
Based on the following information, what is the standard deviation of returns? State of Economy Probability...
Based on the following information, what is the standard deviation of returns? State of Economy Probability of State of Economy Rate of Return if State Occurs Recession .31 − .099 Normal .38 .114 Boom .31 .224
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 Recession .18 .07 −.18 Normal .55 .10 .11 Boom .27 .15 .28 Calculate the expected return for the two stocks. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Expected return Stock A % Stock B % Calculate the standard deviation for the two stocks. (Do not round intermediate...
P13-6 Calculating Expected Return [LO1] Consider the following information: State of Economy Probability of State of...
P13-6 Calculating Expected Return [LO1] Consider the following information: State of Economy Probability of State of Economy Rate of Return if State Occurs Recession .11 –.08 Normal .45 .14 Boom .44 .29 Calculate the expected return. Multiple Choice 18.18% 17.27% 18.91% 19.09% 2.33%
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT