Question: Based on the following probability distribution what is security expected return? Stat 0.2 0.4 0.5 probability -5.00 10.0 30.0

Based on the following probability distribution what is security expected return?
Based on the following probability distribution what is security

Stat 0.2 0.4 0.5 probability -5.00 10.0 30.0

Step by Step Solution

★★★★★

3.59 Rating (167 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

Computation of the Expected Return on investment Ex... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

68-B-F-F-M (1697).docx

120 KBs Word File

Students Have Also Explored These Related Finance Questions!

Q:

The Statewide Auto Insurance Company developed the following probability distribution for automobile collision claims paid during the past year: Payment($)_____________________Probability...

Q:

Based on the following information, calculate the expected return and standard deviation for the twostocks. Rate of ReturnifState Occurs State of Probability of State of EconomyStockA Stock B...

Q:

Based on the following information, calculate the expected return and standard deviation for the twostocks. Rate of Return If State Occurs State of Economy Recession Normal Boom Probability of State...

Q:

translation: Based on the following probability distribution, what would the expected return on the security be? r 2. Con base en la siguiente distribucin de probabilidad, cul seria el rendimiento...

Q:

currently yields 4%, and its par value is $100. Suppose interest rates rise and pull the preferred stock's yield up to 10%. How much would its market value change? 5 points a) $200 b) $500 c) -$200...

Q:

Here are the 40 Questions. Have a total of 1:25 mins Question 1 (3 points) 1 A typical loan arrangement requires the same monthly payment at the end of each month for a certain period. This type of...

Q:

None of the above 10. Suppose you hold a portfolio consisting of a $10,000 investment in each of 8 different common stocks. The portfolio's beta is 1.25. Now suppose you decided to sell one of your...

Q:

please answer fast Given the following probability distribution, what are the expected return and the standard deviation of returns for Security J? State 1 23 8.90%; 2.51% O 8.10%; 3.11% 9.40%; 3.71%...

Q:

2. Based on the following probability distribution, what would be the return expected from the title? Condition Probability R 1 0.2 -5.0% 2 0.4 10 3 0.5 30

Q:

Given the following probability distribution, what are the expected return and the standard deviation of returns for Security J? State Pi ri 1 0.3 9% 2 0.2 9% 3 0.5 3% 6.00%; 3.00% 5.50%; 3.30%...

Q:

In Figure the ideal battery has emf ? = 30.0 V and the resistances are R1 = R2 = 14?, R3 = R4 = R5 = 6.0?, R6 = 2.0?, and R7 = 1.5?. What are currents?(a) i2,(b) i4,(c) i1,(d) i3, and(e) i5? Ry R, Ro...

Q:

Explain how the below 3 principles require collaboration amongst supply chain partners and briefly describe the relationship between those principles to CPFR. (Collaborative Planning, Forecasting,...

Q:

Several structural factors affect long - run segment attractiveness. These include all of the followingEXCEPT _ _ _ _ _ _ _ _ . A ) easy entry by new competitorsB ) the segment does not match the...

Q:

What is the meaning of the process paradox? How can it be avoided?

Q:

Determine the effect of the following errors on a companys total revenue, total expenses, and net income. Indicate the effect by writing O for Overstated (too much), U for Understated (too little),...

Q:

Journalize correcting entries for each of the following errors and include a brief explanation. a. A cash purchase of office equipment for $ 680 was journalized as a cash purchase of store equipment...

Q:

Journalize correcting entries for each of the following errors and include a brief explanation. a. A cash purchase of office equipment for $ 680 was journalized as a cash purchase of store equipment...

Q:

In todays world, most anyone can make purchases even without the money in hand to do so. There are many types of hard and fast rules for when it is acceptable to use credit. Today you will be...

Q:

Research question: Does consuming alcohol impact reaction times? A sample of 60 adults was obtained. All participants were at least 21 years old and were told that they would be drinking a beer...

Q:

Sisters Corp expects to earn $5 per share next year The firm's ROE is 15% and its plowback ratio is 50% If the firm's market capitalization rate is 10% Calculate the price with the constant dividend...