Expected return=Respective return*Respective probability
=(0.15*-9)+(0.6*11)+(0.25*30)
which is equal to
=12.75%(or 0.1275)
CHAPTER 11 Risk and Retur 6. Calculating Expecte bleulating Expected Return. Based on the following information,...
Show work please not on excel.
CHAPTER 11 Risk and Retur 6. Calculating Expecte bleulating Expected Return. Based on the following information, calculate the expected return. State of Economy Probability of State of Economy Rate of Return If State Occurs Recession Normal Boom .15 .60 .25 -.09 .11 .30 Calculating Returns and
Please
show work that is not on excel please. Thank you.
CHAPTER 11 Risk and Retur 6. Calculating Expecte bleulating Expected Return. Based on the following information, calculate the expected return. State of Economy Probability of State of Economy Rate of Return If State Occurs Recession Normal Boom .15 .60 .25 -.09 .11 .30 Calculating Returns and
6. Calculating Expected Return Based on the following information, calculate the expected return. State of EconomyProbability of State of EconomyRate of Return if State OccursRecession.15-.12Normal.60.10Boom.25.277. Calculating Returns and Standard Deviations Based on the following information, calculate the expected returns and standard deviations for the two stocks. State of EconomyProbability of State of EconomyRate of Return if State OccursStock AStock BRecession.10.02-.30Normal.50.10.18Boom.40.15.3110. Returns and Standard Deviations Consider the following information: State of EconomyProbability of State of EconomyRate of Return if State OccursStock AStock BStock CBoom.15.33.45.33Good.55.11.10.17Poor.20.02.02-.05Bust.10-.12-.25-.09a. Your...
CHAPTER 11 Risk and Return beta? Who set? Can a Case ulating Expected Return. Based on the following information, calculate the expected return 101 State of Economy Probability of State of Economy Rate of Return If State Occurs tion to nis -09 Recession Normal Boom .15 .60 Street is Normal 25 .30
4. 7. Calculating Returns and Standard Deviations. Based on the following information, calculate the expected return and standard deviation for the two stocks. Probability of State of Economy State of Economy Recession Normal Boom Rate of Return if State Occurs Stock A .02 Rate of Return if State Occurs Stock B -30 .18 .10 .50 .10 40 .15
11.06 Calculating Returns and Standard Deviations Based on the following information, calculate the expected return and standard deviation Main Page State of Economy Probability of State of Economy Rate of Return if State Occurs Depression 0.150 -10.50% Recession 0.300 5.90% Normal 0.450 13.00% Boom 0.100 21.10% Expected Value Variance Standard Deviation
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
5. Calculating Expected Return (L01) Based on the following information, calculate the expected return State of Economy Probability of State of Economy Portfolio Retum If State Occurs Recession Boom Click here for a description of Table Questions and Problems 5
Problem 11-5 Calculating Expected Return Consider the following information: State of Economy Probability of State of Economy Rate of Return if State Occurs Recession .16 − .12 Normal .52 .13 Boom .32 .21 Calculate the expected return. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Expected return
• Based on the following information, calculate the expected return and standard deviation for the two stocks: Rate of Return If State Occurs State of Economy Probability of State of Economy Stock A Stock B Recession 20% 6% -20% Normal 55% 7% 13% Boom 25% 11% 33%