Question

Use the following information on states of the economy and stock returns to calculate the standard...

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

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

AS ASKED, ROUNDED TO 2 DECIMALS

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
Use the following information on states of the economy and stock returns to calculate the standard...
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
Use the following information on states of the economy and stock returns to calculate the standard...
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: ?%
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...
Use the following information on states of the economy and stock returns to calculate the standard...
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
Security Returns if State Occurs State of Economy Probability of State of Economy Roll Ross Bust...
Security Returns if State Occurs State of Economy Probability of State of Economy Roll Ross Bust 0.60 –14 % 15 % Boom 0.40 32 5 Calculate the standard deviations for Roll and Ross by filling in the following table: (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 4 decimal places.) State of Economy Probability of State of Economy Return Deviation from Expected Return Squared Return Deviation Product Roll Bust...
Security Returns if State Occurs State of Economy Probability of State of Economy Roll Ross Bust...
Security Returns if State Occurs State of Economy Probability of State of Economy Roll Ross Bust 0.40 −10 % 21 % Boom 0.60 28 8    Calculate the volatility of a portfolio of 35 percent Roll and 65 percent Ross by filling in the following table: (Do not round intermediate calculations. Enter all answers, except the standard deviation, as decimals rounded to 5 decimal places. Enter the standard deviation as a percent rounded to 2 decimal places.)
Security Returns if State Occurs State of Economy Probability of State of Economy Roll Ross Bust...
Security Returns if State Occurs State of Economy Probability of State of Economy Roll Ross Bust 0.40 −16 % 17 % Boom 0.60 16 7 Calculate the expected return on a portfolio of 65 percent Roll and 35 percent Ross by filling in the following table:(A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) State of Economy Probability of State of Economy Portfolio...
You are given the following information: State of Economy Probability of State of Economy Rate of...
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 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 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...
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....
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT