Question

Calculate Expected Rate of Return, variance, standard deviation, and coefficient variation. I am unsure of how to solve this problem

Outcomes: Probability Return

Better than Expected: 0.15 0.45

As Expected: 0.55 0.2

Worse than Expected: 0.25 0.05

Poor: 0.05 -0.25

Answer #1

Formula

Integrative—Expected return, standard deviation, and
coefficient of variation An asset is currently being considered
by Perth Industries. The probability distribution of expected
returns for this asset is shown in the following table,
1 0.05 35.00%
2 0.25 20.00%
3 0.55 5.00%
4 0.05 0.00%
5 0.10 -5.00%
a. Calculate the expected value of return, for the asset.
b. Calculate the standard deviation,for the asset's
returns.
c. Calculate the coefficient of variation, CV,for the asset's
returns.

Integrative—Expected return, standard
deviation, and coefficient of variation An asset is
currently being considered by Perth Industries. The probability
distribution of expected returns for this asset is shown in the
following table,
j
Pr
Return, r
1
0.05
15.00%
2
0.15
5.00%
3
0.70
0.00%
4
0.05
−5.00%
5
0.05
−10.00%
.
a.Calculate the expected value of return,
r,
for the asset.
b. Calculate the standard deviation, for the
asset's returns.
c. Calculate the coefficient of variation,
CV,...

Exercise
Calculate the expected return, variance, standard deviation and
coefficient of variation for the following stock:
Demand for Company’s Products
Probability of this outcome
Return if this occurs
Weak
.1
-50%
Below Average
.2
-5%
Average
.4
16%
Above Average
.2
25%
Strong
.1
60%
1.0

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...

Calculate the expected return, standard deviation, and
coefficient of variation for the following probability
distribution.
Probability(%) Return(%)
10 12
25 18
45 20
20 -8

A stock currently is paying 5% return. Calculate the
following investment's expected rate of return and
its standard deviation based on the data below.
DATA
Probability
Return
0.15
-0.05
0.25
0.15
0.2
0.2
0.4
0.25

Calculate the coefficients of variation for the following
stocks:
Stock
Expected return
Standard deviation of return
1
0.065
0.29
2
0.04
0.17
3
0.15
0.24
1. What is the coefficient of variation for stock 1?
2.What is the coefficient of variation for stock 2?
3. What is the coefficient of variation for stock 3?
4. If you want to get the best risk-to-reward trade-off, which
stock should you buy?

Calculate the stock’s expected return, variance and standard
deviation.
Demand for the Company’s Products
Probability of This Demand Occurring
Rate of Return if This Demand Occurs
Weak
0.15
(30%)
Below average
0.20
(3%)
Average
0.35
18%
Above average
0.20
25%
Strong
0.10
31%

I am trying to figure out the probability, expected value,
variance, and standard deviation for a series of dice rolls. For
example, if I roll a six-sided die in an attempt to roll a 1, and
it takes me 13 rolls before a 1 appears, what are those answers? I
believe I have figured out the probability equation:
P(P-1)^x where x is the number of rolls - 1 so for 13 rolls the
probability would be: 1/6(1-1/6)^12 = .01864045
Is...

Risk and Return
Ratio
Mean
-0.01
Sample Variance
0.04
Standard Deviation
0.20
Coefficient of Variation
-18.80
Interpret the above data; 200 words

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