Question: Based on the following information, calculate the Expected Return, Variance and standard Deviation of the following stock: State of Economy Probability of state of economy

  1. Based on the following information, calculate the Expected Return, Variance and standard Deviation of the following stock:

State of Economy Probability of state of economy Return of Stock

20% Recession -5%

60% Normal 8%

20% Boom 15%

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock 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:

Based on the following information, calculate the expected return, variance and standard deviation for two stocks: Scenario Probability Return Stock A Return Stock B Recession 10% 3.0% -5.0% Normal...

Q:

Based on the following information, calculate the expected return, variance and standard deviation for two stocks: Scenario Probability Return Stock A Return Stock B Recession 10% 3.0% -5.0% Normal...

Q:

Based on the following information, calculate the expected return, variance and standard deviation: State of the Economy Probability Rate of Return Depression 5% -5.0% Recession 10% 4.0% Normal 60%...

Q:

Based on the following information, calculate the expected return, variance and standard deviation: State of the Economy Probability Rate of Return Depression 5% -5.0% Recession 10% 4.0% Normal 60%...

Q:

Based on the following information, calculate the expected return, variance, and standard deviation for the stock. State Probability Return Recession .15 2% Normal .55 10% Boom .30 14%

Q:

Using the following information, calculate the expected return and the standard deviation of ABC. State of the Economy Probability ABC Stock Return (%) Depression 0.15 5 Recession 0.2 1 Normal 0.4 6...

Q:

No Excel plz 2. Based on the following data; calculate the expected return and the standard deviation of returns for stock A. (From Chapter 11) State of the Economy Probability Stock A Rate of Return...

Q:

You invest in a portfolio consists of X, Y and Z stocks. The investment value of each stock is presented in Table 1. You also get information about the return of each stock in 3 (three) possible...

Q:

You invest in a portfolio consists of X, Y and Z stocks. The investment value of each stock is presented in Table 1. You also get information about the return of each stock in 3 (three) possible...

Q:

Calculating returns and standard deviations: Based on the following information, calculate the expected return and standard deviation for the two stocks. State of economy Probability of state economy...

Q:

You are planning to invest $2,500 today for three years at a nominal interest rate of 9 percent with annual compounding. a. What would be the future value (FV) of your investment? b. Now assume that...

Q:

Manson Incorporated reported the following current asset on its December 31, 2006 balance sheet: Temporary investment in available-for-sale securities (at cost) ...... $63,475 Less: Allowance for...

Q:

What tax paperwork is required to effectuate the S corporation treatment, when is it due, who needs to sign it , where does it need to be signed? Please also address how the paperwork is to be...

Q:

At what point may a listing agent display a For Sale sign on the property? After the sponsoring broker gives permission. At the time the property owner gives written permission. After the property...

Q:

To what extent is your research idea a sensitive issue for any organisation(s) and for any individuals who participate? What influence might this have for your ethical choices about informed consent...

Q:

Are there questions on any of the ethical forms you need to complete that you do not understand? Is it possible to access guidance for the completion of the forms and for a successful ethical review...

Q:

In the research context in which you will be working who has an interest in the findings, conclusions and outcomes of your project? Might there be a potential conflict of interest between your role...