Question

Use the following information on states of the economy and stock
returns to calculate the standard deviation of returns. **(Do
not round intermediate calculations. Enter your answer as a percent
rounded to 2 decimal places.)**

State of Economy | Probability of State of Economy |
Security
Return if State Occurs |
||||||||||

Recession | .35 | −9.00 | % | |||||||||

Normal | .30 | 14.00 | ||||||||||

Boom | .35 | 23.00 | ||||||||||

Standard Deviation: ?%

Answer #1

The Standard Deviation of Stock= 13.77% approx.

Detailed calculations is attached in the image.

Use the following information on states of the economy and stock
returns to calculate the standard deviation of returns. Assume that
all three states are equally likely. (Do not round
intermediate calculations. Enter your answer as a percent rounded
to 2 decimal places.)
State of
Economy
Security
Return
if State Occurs
Recession
−7.00
%
Normal
9.00
Boom
21.00

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...

Use the following information on states of the economy and stock
returns to calculate the standard deviation of returns. (Do
not round intermediate calculations. Enter your answer as a percent
rounded to 2 decimal places.)
State of
Economy
Probability of
State of Economy
Security Return
if State Occurs
Recession
0.45
−5.00
%
Normal
0.40
12.00
Boom
0.15
16.00
Standard Deviation

Use the following information on states of the economy and stock
returns to calculate the standard deviation of returns. (Do
not round intermediate calculations. Enter your answer as a percent
rounded to 2 decimal places.)
State of Economy
Probability of
State of Economy
Security
Return
if State Occurs
Recession
0.35
−10.00
%
Normal
0.50
7.00
Boom
0.15
17.00

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
State of Economy
Stock A
Stock B
Recession
.20
.08
−
.15
Normal
.50
.11
.14
Boom
.30
.16
.31
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...

You are given the following information:
State of Economy
Probability of
State of Economy
Rate of Return
If State Occurs
Depression
.12
−.107
Recession
.23
.057
Normal
.46
.128
Boom
.19
.209
Calculate the expected return. (Do not round intermediate
calculations. Enter your answer as a percent rounded to 2 decimal
places, e.g., 32.16.)
Expected return
%
Calculate the standard deviation. (Do not round
intermediate calculations. Enter your answer as a percent rounded
to 2 decimal places, e.g., 32.16.)...

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 State of Economy
Stock A
Stock B
Recession
0.25
0.05
–0.11
Normal
0.55
0.12
0.16
Boom
0.20
0.16
0.36
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.)
b. Calculate the standard deviation for the two
stocks. (Do not round your intermediate calculations. Enter
your answers as a percent...

Consider the following information: Rate of Return If State
Occurs State of Probability of Economy State of Economy Stock A
Stock B Recession .17 .08 ? .12 Normal .58 .11 .17 Boom .25 .16 .34
Calculate the expected return for each stock. (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 each stock. (Do not round
intermediate calculations....

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