Question

PROBABILITY RETURNS

0.10 9%

0.45 4%

0.35 17%

0.10 11%

Standard deviation?

Answer #1

The answer is:

Calcualtions:

The population mean is calculated as follows:

(Standard deviation) Given the following probabilities and returns
for Mik’s Corperation, find the standard devistion.
Probability. Returns.
0.10 9%
0.40 3%
0.40 19%
0.10 13%
Mik’s standard devistion is ___% (Round to two decimal
places)

Find the standard deviation of 4, 9, 11, 12, 17, 5, 8, 12, 14.
The answer should have two decimals.
Please show your work.

Stocks Alpha and Beta have returns as depicted below. What is
the standard deviation of both stocks? What is the correlation
between them?
Event (“State of the World”)
Probability of Event
Alpha Return
Gamma Return
1
11%
-4%
9%
2
18%
4%
-3%
3
17%
16%
8%
4
21%
8%
17%
5
25%
-3%
-1%
6
8%
15%
5%

1. Stocks X and Y have the following probability
distributions:
Returns
Probability
X
Y
0.10
-5%
-22%
0.20
-2%
-3%
0.30
1%
6%
0.20
4%
17%
0.20
7%
24%
(8 points)
If you form a 50-50 portfolio of the two stocks, calculate the
expected rate of return and the standard deviation for the
portfolio. (Remember, you must
calculate a new range of outcomes for the portfolio.)
Briefly explain why the standard deviation for the portfolio
would be less than the...

Using the following returns, calculate the standard deviation of
returns for Spotify:
Year
Return
1
14%
2
20%
3
-9%
4
3%
5
17%
According to the Fisher effect, what is the relationship between
real and nominal returns when inflation is greater than zero?
Real returns < Nominal returns
Real returns > Nominal returns
Real returns = Nominal returns

Given the following probability distribution, what are the
expected return and the standard
deviation of returns for Security J?
State Pi rj
1 0.5 9%
2 0.4 8%
3 0.1 27%

Find standard deviation. (Answer format: 0.XXXX)
Probability
Ri
30%
8%
20%
10%
40%
9%
10%
11%

11. using the probability listed below
x 0 1 2 3 4
p(x) 0.10 0.26 0.30 0.24 0.10
a. find the mean, variance and standard deviation
b. find p(x is no more than 3)
c. find p(x is at least 2)
d. find p(x<2 or x >2)
e. find p(x is less than 3)

Suppose the standard deviation of the market return is 17%.
a. What is the standard deviation of returns on
a well-diversified portfolio with a beta of 1.4? (Enter
your answer as a percent rounded to the nearest whole
number.)
Standard deviation
%
b. What is the standard deviation of returns on
a well-diversified portfolio with a beta of 0? (Enter your
answer as a percent rounded to the nearest whole
number.)
Standard deviation
%
c. A well-diversified portfolio has a...

Find the range and standard deviation of the set of data. 11,
9, 7, 12, 11

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