Consider shock B, which has three possible returns; +50 percens, Oper- cent, &-50 porceN. The three...
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Consider shock B, which has three possible returns; +50 percens, Oper- cent, &-50 porceN. The three possible rehirns are equally probable! What is the expected return & standard deviation return for shock B? Probability 25 . 25 25 ·25 A 10 .05 -20 C .15 O 25 ·05 с -505 . 10 -15 ·05 (1) Compute the expected returns to each slock. (11) Compute the standard deviation of returns for each shocks il) Compute the covariaces "bet returns on each pair of shocks. Consider shock B, which has three possible returns; +50 percens, Oper- cent, &-50 porceN. The three possible rehirns are equally probable! What is the expected return & standard deviation return for shock B? Probability 25 . 25 25 ·25 A 10 .05 -20 C .15 O 25 ·05 с -505 . 10 -15 ·05 (1) Compute the expected returns to each slock. (11) Compute the standard deviation of returns for each shocks il) Compute the covariaces "bet returns on each pair of shocks.
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i To compute the expected return for Stock B we will multiply each possible return by its correspond... View the full answer
Related Book For
Fundamentals of Financial Management
ISBN: 978-1305635937
Concise 9th Edition
Authors: Eugene F. Brigham
Posted Date:
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