Use the blank table below to help you determine the standard deviation for the following stocks....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Use the blank table below to help you determine the standard deviation for the following stocks. Stock A will return a rate of 12% in a recession. 15% in normal conditions and 18% during a boom. The expected return is 15%. Stock B will return a rate of 7% in a recession, 15% in normal conditions and 23% during a boom. The expected return is 15%. Additionally, use the standard deviation to determine the Coefficient of Variation. Finally, list the Range Deviation from Rate of Scenario Retum Expected Expected Return Return Squared Squared Deviation x Deviation Probability Probability (3) (2) (114) (3)x(3) (5) (4151 Recession 0.25 Normal Boom Standard Deviation- CV= Range 0.5 0.25 Use the blank table below to help you determine the standard deviation for the following stocks. Stock A will return a rate of 12% in a recession. 15% in normal conditions and 18% during a boom. The expected return is 15%. Stock B will return a rate of 7% in a recession, 15% in normal conditions and 23% during a boom. The expected return is 15%. Additionally, use the standard deviation to determine the Coefficient of Variation. Finally, list the Range Deviation from Rate of Scenario Retum Expected Expected Return Return Squared Squared Deviation x Deviation Probability Probability (3) (2) (114) (3)x(3) (5) (4151 Recession 0.25 Normal Boom Standard Deviation- CV= Range 0.5 0.25 Use the blank table below to help you determine the standard deviation for the following stocks. Stock A will return a rate of 12% in a recession. 15% in normal conditions and 18% during a boom. The expected return is 15%. Stock B will return a rate of 7% in a recession, 15% in normal conditions and 23% during a boom. The expected return is 15%. Additionally, use the standard deviation to determine the Coefficient of Variation. Finally, list the Range Deviation from Rate of Scenario Retum Expected Expected Return Return Squared Squared Deviation x Deviation Probability Probability (3) (2) (114) (3)x(3) (5) (4151 Recession 0.25 Normal Boom Standard Deviation- CV= Range 0.5 0.25 Use the blank table below to help you determine the standard deviation for the following stocks. Stock A will return a rate of 12% in a recession. 15% in normal conditions and 18% during a boom. The expected return is 15%. Stock B will return a rate of 7% in a recession, 15% in normal conditions and 23% during a boom. The expected return is 15%. Additionally, use the standard deviation to determine the Coefficient of Variation. Finally, list the Range Deviation from Rate of Scenario Retum Expected Expected Return Return Squared Squared Deviation x Deviation Probability Probability (3) (2) (114) (3)x(3) (5) (4151 Recession 0.25 Normal Boom Standard Deviation- CV= Range 0.5 0.25
Expert Answer:
Answer rating: 100% (QA)
Standard Deviation for Stocks A and B Lets use the provided table to calculate the standard deviation for Stocks A and B Well assume equal probabilities 25 for each economic scenario Recession Normal ... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
Students also viewed these finance questions
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...
-
The accounting records of Shinault Inc. show the following data for 2017 (its first year of operations). 1. Life insurance expense on officers was $9,000. 2. Equipment was acquired in early January...
-
What did you learn from HSBC's case when applying concepts and theories from this chapter?
-
The size of an undisturbed fish population has been modeled by the formula Where is the fish population after years and a and b are positive constants that depend on the species and its environment....
-
Split the Bill? When the time comes for a group of people eating together at a restaurant to pay their bill, sometimes they might agree to split the costs equally and other times will pay...
-
Paula Judge owns Judge Creative Designs. The trial balance of the firm for January 31, 2019, the first month of operations, is shown below. INSTRUCTIONS Complete the worksheet for the month. Prepare...
-
What happened to the USA's economic growth? What is the main contributing factor to this change? Discuss in a couple of sentences things that are important for the change in the USA's economic...
-
Pop Corporation acquired 70 percent of the outstanding voting stock of Son Corporation for $182,000 cash on January 1, 2016, when Son's stockholders' equity was $260,000. All the assets and...
-
You tind numerous errors in the inventory system that affected net income in prior years. Assume taxes are 40%. Vear 1 is the first vear of the firm's operations. Assume the error was discovered in...
-
A liquid mixture containing \(50 \mathrm{~mol} \%\)-heptane (A) and \(50 \mathrm{~mol} \%\)-octane (B), at \(303 \mathrm{~K}\), is to be continuously flash-vaporized at a temperature of \(350...
-
A liquid mixture containing \(50 \mathrm{~mol} \%\)-heptane (A) and \(50 \mathrm{~mol} \%\)-octane (B), at \(303 \mathrm{~K}\), is to be continuously flash-vaporized at a pressure of \(1...
-
A tower \(0.6 \mathrm{~m}\) in diameter, packed with \(50-\mathrm{mm}\) ceramic Raschig rings to a depth of \(1.2 \mathrm{~m}\), is to be used for producing a solution of oxygen in water for certain...
-
Air at \(300 \mathrm{~K}\) is used to dry a plastic sheet. The solvent wetting the plastic is acetone. At the end of the dryer, the air leaves containing \(2.0 \mathrm{~mol} \%\) acetone. The acetone...
-
A batch distillation column with four theoretical stages (first stage is the still pot) is charged with \(100 \mathrm{kmol}\) of a \(50 \mathrm{~mol} \%\) benzene in toluene mixture at atmospheric...
-
Hepburn Company bought a copyright for $111,000 on January 1, 2015, at which time the copyright had an estimated useful life of 15 years. On January 5, 2018, the company determined that the copyright...
-
Hardin Services Co. experienced the following events in 2016: 1. Provided services on account. 2. Collected cash for accounts receivable. 3. Attempted to collect an account and, when unsuccessful,...
-
Larry and Lisa Williams, both 33 years old, have been married for 9 years. They live at 638 Arctic Way, Fairbanks, AK 99701. Lisa's Social Security number is 445- 81-1423 and Larry's is 798-09-8526....
-
On July 1, 2012, Ted, age 73 and single, sells his personal residence of the last 30 years for $365,000. Ted's basis in his residence is $35,000. The expenses associated with the sale of his home...
-
Skyler is covered by his company's health insurance plan. The health insurance costs his company $3,500 a year. During the year, Skyler is diagnosed with a serious illness and the health insurance...
-
Kiev Co. purchases a machine on 1 January 20X0 for 240,000. Depreciation is charged at 10 per cent on cost. On 30 June 20X4, the machine is sold for 120,000 and the proceeds used to buy a new vehicle...
-
The trial balance of Shanghai Co. on 31 March 20X7 is given below. The following information is also relevant: 1. Closing inventory is valued at 133m. 2. Electricity accrued is estimated to be 5m. 3....
-
The trial balance of Penang Co. on 31 July 20X7 was as follows. The following additional information is available: 1. Inventory at 31 July 20X6 is valued at 1,361,000. 2. Depreciation for the year is...
Study smarter with the SolutionInn App