Question: 1 D L E F G H The figure below shows the one-year return distribution for RCS stock. Calculate a. The expected return. b. The

 1 D L E F G H The figure below shows

the one-year return distribution for RCS stock. Calculate a. The expected return.

1 D L E F G H The figure below shows the one-year return distribution for RCS stock. Calculate a. The expected return. b. The standard deviation of the return. 35% Probability 1592 0% Return Return Probability X-R (X R)? P*X R)? -25% -10% 0% 10% 20% 15% 25% 30% 10% 25% a. The expected return. Expected return (R) b. The standard deviation of the return. Standard deviation You will calculate the expected return by using the function SUMPRODUCT. In cell D33, by using the function SUMPRODUCT and cell references, calculate the expected return (1 pt.). Note: Enter the arrays in the function SUMPRODUCT in the order they appear in the problem (from left to right.) In cell F25, by using absolute and relative cell references, calculate the difference between the first return and the expected return. That is, subtract the expected return from the first return (1 pt.). To calculate the difference between the second return and the expected return, the difference between the third return and the expected return, etc., copy cell F25 and paste it onto cells F26:F29 (1 pt.). In cell G25, by using cell references, calculate the square of the difference between the first return and the expected return (1 pt.). To calculate the square of the difference between the second return and the expected return, the square of the difference between the third return and the expected return, etc., copy cell G25 and paste it onto cells G26:G29 (1 pt.). In cell H25, by using cell references, calculate the product between the square of the difference between the first return and the expected return and the probability that the first return will occur (1 pt.). Copy cell H25 and paste it onto cell H26:H29 (1 pt.). To calculate the variance of returns use the function SUM. In cell H30, by using the function SUM and cell references, calculate the variance of returns (1 pt.). In cell D37, by using cell references, calculate the standard deviation of returns using the answer obtained in Step 8 (1 pt.)

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