Question

1. A stock will have a loss of 11 percent in a bad economy, a return...

1. A stock will have a loss of 11 percent in a bad economy, a return of 10.8 percent in a normal economy, and a return of 24.7 percent in a hot economy. There is 32 percent probability of a bad economy, 37 percent probability of a normal economy, and 31 percent probability of a hot economy. What is the variance of the stock's returns?

a. .04097

b. .01536

c. .14313

d. .02049

2. Based on the following information, what is the variance?

State of
Economy		 Probability of State
of Economy		 Rate of Return if
State Occurs
Recession .28 − 10.60%
Normal .31 12.10%
Boom .41

23.10%

a. .01905

b. .02857

c. .03810

d. .08806

e. .13802

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

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
Based on the following information, what is the variance? State of Economy Probability of State of...
Based on the following information, what is the variance? State of Economy Probability of State of Economy Rate of Return if State Occurs Recession .28 − 10.60% Normal .31 12.10% Boom .41 23.10%
A stock will have a loss of 11.9 percent in a bad economy, a return of...
A stock will have a loss of 11.9 percent in a bad economy, a return of 11.7 percent in a normal economy, and a return of 25.6 percent in a hot economy. There is 25 percent probability of a bad economy, 28 percent probability of a normal economy, and 47 percent probability of a hot economy. What is the variance of the stock's returns?
A stock will have a loss of 10.9 percent in a bad economy, a return of...
A stock will have a loss of 10.9 percent in a bad economy, a return of 10.7 percent in a normal economy, and a return of 24.6 percent in a hot economy. There is 31 percent probability of a bad economy, 38 percent probability of a normal economy, and 31 percent probability of a hot economy. What is the variance of the stock's returns? Multiple Choice A. .03977 B. .14101 C. .01988 D. .02982 E. .01491
A stock will have a loss of 10.5 percent in a bad economy, a return of...
A stock will have a loss of 10.5 percent in a bad economy, a return of 10.3 percent in a normal economy, and a return of 24.2 percent in a hot economy. There is 27 percent probability of a bad economy, 42 percent probability of a normal economy, and 31 percent probability of a hot economy. What is the variance of the stock's returns
A stock will have a loss of 12.5 percent in a recession, a return of 11.2...
A stock will have a loss of 12.5 percent in a recession, a return of 11.2 percent in a normal economy, and a return of 25.9 percent in a boom. There is 22 percent probability of a recession, 47 percent probability of normal economy, and 31 percent probability of boom. What is the standard deviation of the stock's returns?
A stock will have a loss of 13.3 percent in a recession, a return of 12...
A stock will have a loss of 13.3 percent in a recession, a return of 12 percent in a normal economy, and a return of 26.7 percent in a boom. There is 30 percent probability of a recession, 39 percent probability of normal economy, and 31 percent probability of boom. What is the standard deviation of the stock's returns?
A stock will have a loss of 13.6 percent in a recession, a return of 12.3...
A stock will have a loss of 13.6 percent in a recession, a return of 12.3 percent in a normal economy, and a return of 27 percent in a boom. There is 33 percent probability of a recession, 36 percent probability of normal economy, and 31 percent probability of boom. What is the standard deviation of the stock's returns?
A stock has an expected return of 10.44 percent. Based on the following information, what is...
A stock has an expected return of 10.44 percent. Based on the following information, what is the stock's return in a boom state of the economy? State of Economy Probability of State of Economy Rate of Return if State Occurs Recession .31 − 9.9 % Normal .38 11.4 % Boom .31 ? 30.95% 32.29% 29.60% 25.90% 27.75%
(20 pts.) Ada Hotel & Resorts’ stock is expected to return 8.5 percent if the economy...
(20 pts.) Ada Hotel & Resorts’ stock is expected to return 8.5 percent if the economy is normal. If the economy falls into a recession, the stock's return is projected at a negative 5.4 percent. If the economy booms, the stock’s return is expected to be 12 percent. The probability of a normal economy is 60 percent while the probability of a recession and boom is 20 percent each. Given this information, what is the expected return and variance of...
Based on the following information, what is the variance? State of Economy Probability of State of...
Based on the following information, what is the variance? State of Economy Probability of State of Economy Rate of Return if State Occurs Recession .23 − 9.10% Normal .46 10.60% Boom .31 21.60% Multiple Choice .06857 .02510 .11203 .01255 .01883
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT