Question

Question 3 Stock A has the following returns for various states of the economy: State of...

Question 3

Stock A has the following returns for various states of the economy:

State of
the Economy Probability Stock A's Return
Recession 5% -15%
Below Average 25% -2%
Average 40% 9%
Above Average 25% 14%
Boom 5% 15%

Stock A's expected return is:

6.60%

7.35%

8.35%

8.85%

Question 8

The U.S. Treasury Bills are yielding 2.5%. What would be the expected return of a stock with beta of 1.91, if S&P 500 is expected to provide a return of 8.75%?

13.3%.

12.9%.

8.2%.

14.4%.

IF YOU CAN'T ANSWER BOTH, DO NOT ANSWER ANY. LET SOMEONE WHO CAN ANSWER IT.

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Stock A has the following returns for various states of the economy: State of Economy Probability...
Stock A has the following returns for various states of the economy: State of Economy Probability Stock A's Return Recession 5% -50% Below average 25% -3% Average 35% 10% Above average 20% 20% Boom 15% 45% Stock A's standard deviation of returns is _______    20.62%    4.25%    6.47%    11%
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...
Answer the following question based on the information below: State of Economy Probability Stock A’s return...
Answer the following question based on the information below: State of Economy Probability Stock A’s return Stock B’s return Boom .4 15% - 30% Recession .6 5% 40% If you invest $50,000 in each of stocks A and B, what is the expected return for your portfolio? p
Answer the following question based on the information below: State of Economy Probability Stock A’s return...
Answer the following question based on the information below: State of Economy Probability Stock A’s return Stock B’s return Boom .4 15% - 30% Recession .6 5% 40% If you invest $50,000 in each of stocks A and B, what is the expected return for your portfolio? Group of answer choices 16.0% 15.0% 15.5% 17.5% 16.5%
Calculate the standard deviation of returns for Stock A and Stock B. State of Economy: (Recession...
Calculate the standard deviation of returns for Stock A and Stock B. State of Economy: (Recession 20%) (Normal 55%) (Boom 25%) Stock A Return: (Recession 5%) (Normal 8%) (Boom 13%) Stock B Return: (Recession -17%) (Normal 12%) (Boom 29%) Possible Answers: a. 23.26% b. 15.43% c. 14.94% d. 4.04% e. 2.76%
Question 1 (1 point) a. Calculate the expected return on stock of Gamma Inc.: State of...
Question 1 (1 point) a. Calculate the expected return on stock of Gamma Inc.: State of the economy Probability of the states Percentage returns Economic recession 15% -5.2% Steady economic growth     30% 2.7% Boom Please calculate it 13.3% Round the answers to two decimal places in percentage form. b. Calculate the expected standard deviation on stock: State of the economy Probability of the states Percentage returns Economic recession              26% -10% Steady economic growth 28% 10% Boom Please calculate it...
What is the variance of the expected returns on this stock? State of the Economy Probability...
What is the variance of the expected returns on this stock? State of the Economy Probability Expected Return Boom .70 24 % Recession .30 6 % Multiple Choice 48.75% 61.53% 70.03% 68.04% 52.75%
Question 1 a. Calculate the expected return on stock of Gamma Inc.: State of the economy...
Question 1 a. Calculate the expected return on stock of Gamma Inc.: State of the economy Probability of the states Percentage returns Economic recession 28% -7.4% Steady economic growth     35% 2.2% Boom Please calculate it 14.6% Round the answers to two decimal places in percentage form. b. Calculate the expected standard deviation on stock: State of the economy Probability of the states Percentage returns Economic recession              18% 2% Steady economic growth 22% 8% Boom Please calculate it 14%
Based on the following information, please answer the question: State of Economy Probability Stock ABC’s return...
Based on the following information, please answer the question: State of Economy Probability Stock ABC’s return Stock XYZ’s return Boom 20% 35% 0% Recession 80% 10% 10% What are the expected returns and standard deviations of the two stocks above? Group of answer choices E(RABC)=15% ; ABC=10% ; E(RXYZ)=8% ; XYZ=4%. E(RABC)=15% ; ABC=10% ; E(RXYZ)=8% ; XYZ=2%. E(RABC)=15% ; ABC=6% ; E(RXYZ)=8% ; XYZ=4%. E(RABC)=15% ; ABC=6% ; E(RXYZ)=8% ; XYZ=2%.
Question 1 A) If the economy is normal, Stock A is expected to return 10.50%. If...
Question 1 A) If the economy is normal, Stock A is expected to return 10.50%. If the economy falls into a recession, the stock's return is projected at a negative 14%. If the economy is in a boom the stock has a projected return of 16.9% The probability of a normal economy is 60% while the probability of a recession is 20% and boom is 20%. What is the expected return of this stock? Answer as % and to first...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT