Question

Company share’s return has the following distribution:

Demand for the Company’s Products | Probability of this demand occurring | Rate of return if this demand occurs (%) |

Weak | 0.1 | -50 |

Below Average | 0.2 | -15 |

Average | 0.4 | 16 |

Above Average | 0.2 | 25 |

Strong | 0.1 | 60 |

Required:

Calculate the share’s expected return and standard deviation.

Answer #1

A stock’s return has the following
distribution:
Demand for
Products
Probability of Occurrence of
Demand
Return if
Demand Occurs
Weak
0.1
-40%
Below
Average
0.2
-5
Average
0.4
12
Above
Average
0.2
21
Strong
0.1
50
Calculate the stock’s expected return and standard
deviation.

Expected Return: Discrete Distribution
A stock's return has the following distribution:
Demand for the
Company's Products
Probability of This
Demand Occurring
Rate of Return if This
Demand Occurs (%)
Weak
0.1
-30
%
Below average
0.2
-10
Average
0.4
16
Above average
0.2
35
Strong
0.1
65
1.0
Calculate the stock’s expected return and standard deviation. Do
not round intermediate calculations. Round your answers to two
decimal places.
Expected return: %
Standard deviation: %

Expected Return: Discrete Distribution
A stock's return has the following distribution:
Demand for the
Company's Products
Probability of This
Demand Occurring
Rate of Return if This
Demand Occurs (%)
Weak
0.1
-40%
Below average
0.2
-5
Average
0.4
15
Above average
0.2
30
Strong
0.1
50
1.0
Calculate the stock's expected return. Round your answer to two
decimal places.
%
Calculate the standard deviation. Round your answer to two
decimal places.
%

Expected Return: Discrete Distribution
A stock's return has the following distribution:
Demand for the
Company's Products
Probability of This
Demand Occurring
Rate of Return if This
Demand Occurs (%)
Weak
0.1
-50%
Below average
0.2
-6
Average
0.4
9
Above average
0.2
30
Strong
0.1
75
1.0
Calculate the stock's expected return. Round your answer to two
decimal places.
%
Calculate the standard deviation. Round your answer to two
decimal places.
%

Expected Return: Discrete Distribution A stock's return has the
following distribution:
Demand for the Company's Products Weak Below Average Average
Above Average Strong
Probability of This Demand Occurring 0.1 5 0.4 0.2 0.1
Rate of Return if This Demand Occurs (%) -45% -5% 14% 40%
60%
Calculate the stock's expected return. Round your answer to two
decimal places. % Calculate the standard deviation. Round your
answer to two decimal places. %

Problem 6-05 Expected Return: Discrete Distribution A stock's
return has the following distribution: Demand for the Company's
Products Probability of This Demand Occurring Rate of Return if
This Demand Occurs (%) Weak 0.1 -30% Below average 0.2 -8 Average
0.4 15 Above average 0.2 35 Strong 0.1 75 1.0 Calculate the stock's
expected return. Round your answer to two decimal places. %
Calculate the standard deviation. Round your answer to two decimal
places. %

EXPECTED RETURN
A stock's returns have the following distribution:
Demand for the
Company's Products Probability of This
Demand Occurring Rate of Return If
This Demand Occurs
Weak 0.2 (34%)
Below average 0.1 (12)
Average 0.4 16
Above average 0.2 40
Strong 0.1 47
1.0
A.Calculate the stock's expected return. Round your answer to
two decimal places.
%
B.Calculate the stock's standard deviation. Do not round
intermediate calculations. Round your answer to two decimal
places.
%
C. Calculate the stock's...

EXPECTED RETURN
A stock's returns have the following distribution:
Demand for the
Company's Products
Probability of This
Demand Occurring
Rate of Return If
This Demand Occurs
Weak
0.2
(24%)
Below average
0.2
(12)
Average
0.4
16
Above average
0.1
22
Strong
0.1
70
1.0
Calculate the stock's expected return. Round your answer to two
decimal places.
%
Calculate the stock's standard deviation. Do not round
intermediate calculations. Round your answer to two decimal
places.
%
Calculate the stock's coefficient of...

EXPECTED RETURN
A stock's returns have the following distribution:
Demand for the
Company's Products
Probability of This
Demand Occurring
Rate of Return If
This Demand Occurs
Weak
0.1
(40%)
Below average
0.2
(9)
Average
0.4
15
Above average
0.1
28
Strong
0.2
71
1.0
Calculate the stock's expected return. Round your answer to two
decimal places.
%
Calculate the stock's standard deviation. Do not round
intermediate calculations. Round your answer to two decimal
places.
%
Calculate the stock's coefficient of...

A stock's returns have
the following distribution:
Demand for the
Company's Products
Probability of This
Demand Occurring
Rate of Return If
This Demand Occurs
Weak
0.2
(34%)
Below average
0.1
(15)
Average
0.4
13
Above average
0.1
33
Strong
0.2
49
1.0
Calculate the stock's
expected return. Round your answer to two decimal places.
%
Calculate the stock's
standard deviation. Do not round intermediate calculations. Round
your answer to two decimal places.
%
Calculate the stock's
coefficient of variation. Round...

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 26 minutes ago

asked 29 minutes ago

asked 30 minutes ago

asked 36 minutes ago

asked 46 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 2 hours ago

asked 2 hours ago

asked 2 hours ago