Question: A stock's return has the following distribution: Demand for the Company's Products Probability of This Demand Occurring Rate of Return if This Demand Occurs (%)

A stock's return has the following distribution:

Demand for the
Company's Products		Probability of This
Demand Occurring		Rate of Return if This
Demand Occurs (%)
Weak0.1-35%
Below average0.2-6
Average0.415
Above average0.230
Strong0.160
1.0

Calculate the stock's expected return. Round your answer to two decimal places. ? %

Calculate the standard deviation. Do not round intermediate calculations. Round your answer to two decimal places. ? %

Step by Step Solution

★★★★★

3.42 Rating (155 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

To calculate the stocks expected return we multiply each rate of return by its corresponding probabi... 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

Students Have Also Explored These Related Finance Questions!

Q:

For the acetone(1)/methanol(2)/water(3) system, based on Eq. (13.19) and the Wilson equation, make the following calculations: (a) BUBL P : t = 65C, x 1 = 0.3, x 2 = 0.4. (b) DEW P : t = 65C, y 1 =...

Q:

1. In 2023, X, RC, opted 8% optional income tax rate. From Jan to Sept, sales are 2,900,000 while cost/expenses totaled 1,550,000. In the last quarter, Oct to December, sales increased by 300,000 and...

Q:

The file survey.mtw contains selected variables from an online survey of ADM 2304 students. Assume that these results represent a random sample of all Telfer undergraduate students. The variables are...

Q:

1) Calculate the expected rate of return for the market. Do not round intermediate calculations. Round your answer to two decimal places. 2) Calculate the expected rate of return for Stock J. Do not...

Q:

A stock's return has the following distribution: Demand for the o Company's Products Probability of this Demand Occurring Rate of Return if This Demand Occurs (%) O Weak 0.1 -20% Below average 0.2 -8...

Q:

please do not use excel to complete. show all workings on paper. 16 Points for each question Instructions: Kindly answer question one and any other two questions in this section. 1. A stock expected...

Q:

Assume the risk-free rate is 2%. Calculate the stock's expected return, standard deviation, coefficient of variation, and Sharpe ratio. Do not round intermediate calculations. Round your answers to...

Q:

1. Problem 8.01 (Expected Return) eBook Problem Walk-Through A stock's returns have the following distribution: Demand for the Company's Products Weak Probability of this Demand Occurring 0.1 Rate of...

Q:

A stock's returns have the following distribution: Demand for the Company's Products Weak Probability of this Demand Occurring 0.1 Rate of Return If This Demand Occurs (28%) (12) 16 0.1 0.4 Below...

Q:

GoGoAUCity Inc. plans to issue a perpetual callable bond that pays 11.39% annual coupons. The current interest rate is 8%. Two years later, there is 16% probability that the interest rate will be...

Q:

? _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ t o c o m m u n i c a t i o n s a s t h e s t u d y o f r h e t o r i c t h a t c o n t a i n s t h r e e e l e m e n t s , s p e a k e r , s u b...

Q:

Show how you would use the Gabriel-malonic ester synthesis to make histidine. What stereochemistry would you expect in your synthetic product?

Q:

One way to clearly see the impact of shifting cultural values on consumption is to look at the increasing emphasis on the importance of health and wellness. In recent years, top-performing new...

Q:

Consistent with ASC Topic 8 4 2 and IFRS 1 6 , leases should be accounted for under the assumption. Matriple Choice execumory righta property nighta unlateral temporary

Q:

Alicia placed an order with her broker to purchase 500 shares of each of three IPOs that are being released this month. Each IPO has an offer price of $16 a share. The number of shares allocated to...

Q:

2. Consider the following representation of a decision analysis problem. Benefits S 100 300 D: 400 200 S DI 100 S: 300 D2 400 200 The probabilities are: P(S) = 0.4, P(S,) = 0.6, P(I | Si) = 0.8, P(I...

Q:

Determine the average tax rate and the marginal tax rate for each of the following instances: Use the appropriate Tax Tables and Tax Rate Schedules. A married couple filing jointly with taxable...

Q:

Intellectual property rights and product liability are both major issues in the world today and ones of concern to every type of business, everywhere. Locate a news story from a credible source that...

Q:

Find and draw y(t) for the system below X(t)-21tl and h(t) as below h(t)

Q:

2. (2 points) If you were in Fred Holloway's position, would you accept or reject the new product line? Explain. 3. (2 points) Why do you suppose headquarters is anxious for the West Division to add...

Q:

Industrial Heating and Cooling Inc. has a 6-month backlog of orders for its patented solar heating system. To meet this demand, management plans to expand production capacity by 40% with a $15...

Q:

Using the information from 2-12, calculate the: a. Market Value Added in 2015 for Rhodes Corporation. b. Economic Value Added in 2015. Information from 2-12: Rhodes Corporation: Income Statements for...

Q:

Lucas Mitchell, financial manager of Inland Industrial, has been asked by the firm's CEO to evaluate the company's inventory control techniques and to lead a discussion of the subject with the senior...

Q:

The prices and the numbers of various items produced by a small machine and stamping plant are reported below. Use 2000 as the base. a. Determine the simple price indexes. b. Determine the simple...

Q:

Following are the quantities and prices for the years 2000 and 2014 for Kinzua Valley Geriatrics. Use 2000 as the base period. a. Determine the simple price indexes. b. Determine the simple aggregate...

Q:

The production manager of MPS Audio Systems Inc. is concerned about the idle time of workers. In particular, he would like to know if there is a difference in the idle minutes for workers on the day...