Compute the expected return and standard deviation given these four economic states, their likelihoods, and the potential
Question:
The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these...
Transcribed Image Text:
Economic State Probability Return Fast growth Slow growth Recession Depression 0.30 0.50 0.15 0.05 60% 13 -15 -45
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 62% (16 reviews)
Expected return 03 60 05 13 ...View the full answer
Answered By
WAHIDUL HAQUE
hello,
I'm a professional academic solution provider working as a freelance academic solution provider since 7 years. I have completed numerous projects. Help lots of students to get good marks in their exams and quizzes. I can provide any type of academic help to your homework, classwork etc, if you are a student of Accounting, Finance, Economics, Statistics. I believe in satisfying client by my work quality, rather than making one-time profit. I charge reasonable so that we make good long term relationship. why will you choose me? i am an extremely passionate, boldly honest, ethically driven and pro-active contractor that holds each of my clients in high regards throughout all my business relations. in addition, I'll always make sure that I'm giving my 100% better in every work that will be entrusted to me to be able to produce an outcome that will meet my client's standards. so if you are a student that is now reading my profile and considering me for your academic help. please feel free to look through my working history, feedback and contact me if you see or read something that interests you. I appreciate your time and consideration.
regards
4.90+
233+ Reviews
368+ Question Solved
Related Book For
Finance Applications and Theory
ISBN: 978-0077861681
3rd edition
Authors: Marcia Cornett, Troy Adair
Question Posted:
Students also viewed these Finance questions
-
The table below shows the expected return and standard deviation for two stocks. Is the pattern shown in the table possible? Stock Beta Std. Dev 1 1.5 22% 2 0.9 3590
-
Given the following information, calculate the expected return and standard deviation for a portfolio that has 36 percent invested in Stock A, 38 percent in Stock B, and the balance in Stock C. (Do...
-
The expected return and standard deviation of returns of General Mills common stock over the next year are estimated to be 20 percent and 12 percent, respectively. Assume that the returns are...
-
What is Norway's global health issues and how can they be combated? explain
-
Why is a capability analysis not performed on out-of-control processes?
-
The following data were accumulated for use in reconciling the bank account of Creative Design Co. for August 20Y6: 1. Cash balance according to the company's records at August 31, $20,870. 2. Cash...
-
An example of a response from Amazon when this textbook you are reading was chosen online follows. It indicates that some people who purchased this text also tended to purchase The World Is Flat,...
-
The merchandise inventory was destroyed by fire on August 19. The following data were obtained from the accounting records: a. Estimate the cost of the merchandise destroyed. b. Briefly describe the...
-
What are the key considerations in the design and optimization of extraction processes for the recovery of valuable metals from ores and industrial waste streams, with a focus on factors affecting...
-
a. Describe briefly the legal rights and privileges of common shareholders. b. 1. Write out a formula that can be used to value any stock, regardless of its dividend pattern. 2. What is a constant...
-
You own $7,000 of Human Genome stock that has a beta of 3.5. You also own $8,000 of Frozen Food Express (beta = 1.6) and $10,000 of Molecular Devices (beta = 0.4). What is the beta of your portfolio?
-
Compute the expected return and standard deviation given these four economic states, their likelihoods, and the potential returns: Economic State Probability Return Fast growth Slow growth Recession...
-
Refer to the previous exercise. Describe the relationship between margin of error and confidence level. Data from previous Exercise For each of the confidence intervals in the previous exercise,...
-
A homogeneous disk, having mass \(M=2.50 \mathrm{~kg}\) and radius \(R=15.0 \mathrm{~cm}\), can rotate, without friction, about a fixed horizontal axis, passing through the point \(\mathrm{O}\) of...
-
The system in Fig.12.21 consists of a homogeneous disk of mass \(M=300 \mathrm{~g}\) and radius \(R=40.0 \mathrm{~cm}\). At the disk, a slit has been produced along the entire length \(R\) of the...
-
Consider the system in Fig.12.17. A device with cylindrical symmetry, which rolls without crawling on a horizontal plane, has mass \(M=10.0 \mathrm{~kg}\) and radius \(R=8.0 \mathrm{~cm}\). The...
-
Show that if you have a mass \(M\) distributed of on a spherical shell, that is, on a sphere of radius \(R\) hollow inside, and a point mass \(m\) at a distance \(h\) from the sphere, the...
-
Using the energy scale used in the microscopic world, chemical processes release about \(10 \mathrm{eV}\) per elementary reaction, while a nuclear reaction releases about \(10 \mathrm{MeV}\)....
-
One statement of the second law of thermodynamics is that heat cannot be turned completely into work. Another is that the entropy of the universe always increases. How are these two statements...
-
The text defined intrinsic value as the value of an asset given a hypothetically complete understanding of the assets investment characteristics. Discuss why hypothetically is included in the...
-
Amy, Brooke, and Chelsea live in Minneapolis. Amys demand for bike paths, a public good, is given by Q = 24 4P. Brookes demand is Q = 14 P, and Chelseas is Q = 5 P/3. The marginal cost of building...
-
The balance sheet and income statement of Eastland Products, Inc., are as follows: Income Statement for Year Ended December 31, 2006 (in Millions of Dollars) Sales .........$120 Cost of sales .........
-
Thompson Electronics, Inc., is presently 100 percent equity financed and has assets of $100 million. Thompsons present net income is $9 million, and the companys marginal and average tax rates are 40...
-
Fill in the balance sheet for the Jamestown Company based on the following data (assume a 365-day year): Sales = $3,650,000 Total asset turnover =4x Current ratio = 3:1 Quick ratio = 2:1 Current...
-
Why was Thomas Paine's "common sense" article significant to the american revolution?
-
Aramex, Inc is currently offering a bond with a par value of $1,000, which is priced at $1,488 in the market. The bond offers a fixed annual coupon rate of 14.05 percent, which is paid semiannually....
-
The cash flow for the firm's project is -$40 million in year 0 and $19 million in years 1-4. After year 4, the FCF is expected to grow at a constant rate of 0.020. The firm's discount rate is 0.068....
Study smarter with the SolutionInn App