HomeworkLib
Question

The market has the following probability distributions: Probability market 0.3 12% 0.4 4% 0.3 24 Calculate...

  1. The market has the following probability distributions:

Probability

market

0.3

12%

0.4

4%

0.3

24
  1. Calculate the expected rates of return for the market.  

12.4%

  1. Calculate the standard deviation for the market.  

8.27% (calculator set to 6 decimal places)

Please explain and how to solve on financial calculator.

business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

0 0
Add a comment
Know the answer?
Add Answer to:
The market has the following probability distributions: Probability market 0.3 12% 0.4 4% 0.3 24 Calculate...
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. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • The market has the following probability distributions: Probability market 0.3 12% 0.4 4% 0.3 24 Calculate...

    The market has the following probability distributions: Probability market 0.3 12% 0.4 4% 0.3 24 Calculate the standard deviation for the market.   Please explain and how to solve on BA II Plus financial calculator.

  • The market and Stock J have the following probability distributions: Probability rM rJ 0.3 14% 21%...

    The market and Stock J have the following probability distributions: Probability rM rJ 0.3 14% 21% 0.4 8 3 0.3 20 11 Calculate the expected rate of return for the market. Round your answer to two decimal places. % Calculate the expected rate of return for Stock J. Round your answer to two decimal places. % Calculate the standard deviation for the market. Do not round intermediate calculations. Round your answer to two decimal places. % Calculate the standard deviation...

  • Expected Returns: Discrete Distribution The market and Stock J have the following probability distributions: Probability rM...

    Expected Returns: Discrete Distribution The market and Stock J have the following probability distributions: Probability rM rJ 0.3 15% 18% 0.4 9 7 0.3 20 11 Calculate the expected rate of return for the market. Round your answer to two decimal places. % Calculate the expected rate of return for Stock J. Round your answer to two decimal places. % Calculate the standard deviation for the market. Round your answer to two decimal places. % Calculate the standard deviation for...

  • 1. The market and Stock A have the following probability distributions: Return on Return on Probability market Stock A...

    1. The market and Stock A have the following probability distributions: Return on Return on Probability market Stock A 0.2 18% 16% 0.3 12% 14% 1 0 .5 10% 11% a. Calculate the expected rates of return for the market and Stock A. b. Calculate the coefficient of variation for the market and Stock A (Standard deviation for market is 3.0265% and standard deviation for Stock A is 2.0224%).

  • Stocks A and B have the following probability distributions of expected future returns: Probability 0.1 0.3...

    Stocks A and B have the following probability distributions of expected future returns: Probability 0.1 0.3 0.3 (35%) 0 18 29 36 (996) 4 24 0.1 39 a. Calculate the expected rate of return, r, for Stock B (rA = 12.30%.) Do not round intermediate calculations. Round your answer to two decimal places. b. Calculate the standard deviation of expected returns, σΑ, for Stock A (OB = 19.74%.) Do not round intermediate calculations. Round your answer to two decimal places....

  • Stocks A and B have the following probability distributions of expected future returns: Probability 0.1 0.3...

    Stocks A and B have the following probability distributions of expected future returns: Probability 0.1 0.3 0.3 0.2 0.1 (10%) 3 16 19 32 (36%) 0 24 27 47 a. Calculate the expected rate of return, r, for Stock B (TA-11.70%.) Do not round intermediate calculations. Round your answer to two decimal places. b. Calculate the standard deviation of expected returns, , for Stock A (Og- 21.94%.) Do not round intermediate calculations. Round your answer to two decimal places. nalolo...

  • a. Stock Moon and Noon have the following probability distributions of returns: Probability Returns Stock Moon...

    a. Stock Moon and Noon have the following probability distributions of returns: Probability Returns Stock Moon Stock Noon 20% 10% 12% 15% 2% 0.3 0.4 0.3 -2% From the above information, calculate for each stock: i) The expected rate of return. (3 Marks) ii) The standard deviation. (3 Marks) iii) The coefficient of variation. (2 Marks) iv) Based on your calculation in part (iii), decide on the stock that you should invest on. Justify your answer. (4 Marks) b. Suppose...

  • EXPECTED RETURNS Stocks A and B have the following probability distributions of expected future returns: Probability...

    EXPECTED RETURNS Stocks A and B have the following probability distributions of expected future returns: Probability A B 0.1 (13%) (35%) 0.2 5 0 0.3 12 20 0.3 18 29 0.1 38 38 Calculate the expected rate of return, rB, for Stock B (rA = 12.50%.) Do not round intermediate calculations. Round your answer to two decimal places. % Calculate the standard deviation of expected returns, σA, for Stock A (σB = 20.35%.) Do not round intermediate calculations. Round your...

  • Stocks A and B have the following probability distributions of expected future returns: Probability     A     B...

    Stocks A and B have the following probability distributions of expected future returns: Probability     A     B 0.1 (7 %) (28 %) 0.2 5 0 0.4 15 18 0.2 22 28 0.1 29 46 Calculate the expected rate of return, , for Stock B ( = 13.60%.) Do not round intermediate calculations. Round your answer to two decimal places. Calculate the standard deviation of expected returns, σA, for Stock A (σB = 19.06%.) Do not round intermediate calculations. Round your answer...

  • 8-6 EXPECTED RETURNS Stocks A and B have the following probability distributions of expected future returns:...

    8-6 EXPECTED RETURNS Stocks A and B have the following probability distributions of expected future returns: Probability B 0.1 0.2 A (10%) 2 12 20 38 (35%) 0 20 0.4 0.2 0.1 45 a. Calculate the expected rate of return, fe, for Stock B (f = 12%). b. Calculate the standard deviation of expected returns, o , for Stock A (o, = 20.35%). Now calculate the coefficient of variation for Stock B. Is it possible that most investors will regard...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT