Homework Answers
Expected return = (0.55*10.6%) + (0.45*4.2%) = 7.72%
Standard deviation = ((0.55*((10.6%-7.72%)^2))+ (0.45*((4.2%-7.72%)^2)))^0.5 = 0.03184 = 3.18%
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6) Given the following find the expected return and standard deviation of stock returns for Y...
Calculate the standard deviation of returns of Stock Q, given the following information. State Stock return...
Calculate the standard deviation of returns of Stock Q, given the following information. State Stock return Probability of state Recession -2% 35% Normal 8% 50% Boom 20% 15% Select one: O a. 7.70% O b. 6.30% c. 5.37% O d. 7.33% o e. 3.66%
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What is the standard deviation of the returns on a stock given the following information? State of Economy Probability of State of Economy Rate of Return if State Occurs Boom .28 .175 Normal .67 .128 Recession .05 .026 Group of answer choices 3.42 percent 4.01 percent 3.89 percent 3.28 percent 3.57 percent
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Calculating returns and standard deviation. Based on the following information, can you calculate the expected return...
Calculating returns and standard deviation. Based on the following information, can you calculate the expected return and standard deviation for the two stocks?: State of economy. Prob of st of econ Rate of return if state occurs Stock A Stock B Recession .25 .06 -.20 Normal .55 .07 .13 Boom .20 . .11 .33
6. Calculating Expected Return Based on the following information, calculate the expected return.
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Standard deviation
The investment possible returns and related probabilities are in Table 2. State of Economy Probability of Occurrence Rate of Return Stock G1 (%) Rate of Return Stock G2 (%) Boom 0.35 -10 15 Normal 0.55 8 -9.25 Recession 0.1 32.5 22.5 Table 2 Calculate for both investment:- i. Expected return (4 marks) ii. Standard deviation
Calculate the expected return and standard deviation for the following single stock: State of economy Probability...
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4. 7. Calculating Returns and Standard Deviations. Based on the following information, calculate the expected return...
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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 0.45 0.40 0.15 Security Return if State Occurs -5.00% 12.00 16.00 Recession Normal Boom Standard deviation
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