Question: Calculate the stocks expected return? Calculate the stardard deviation? A stock's return has the following distribution: Demand for the Probability of Rate of Return if

Calculate the stocks expected return?

Calculate the stardard deviation?

A stock's return has the following distribution: Demand for the Probability of Rate of Return if This Company's Products This Demand Occurs (%) Demand Occurring Weak 0.1 35% Below average 0.2 -7 Average 0.4 16 Above average 0.2 20 Strong 0.1 70 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

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!

A trader wishes to unwind a position of 200,000 units in an asset over eight days. The dollar bidoffer spread, as a function of daily trading volume q, is a + b cq where a = 0.2, b = 0.15 and c = 0.1...

Calculate the stocks expected return, variance and standard deviation. Demand for the Companys Products Probability of This Demand Occurring Rate of Return if This Demand Occurs Weak 0.15 (30%) Below...

PROBLEM 2: Part- A Based on the following data; State of the Economy Probability Stock A Rate of Return Recession 0.2 -5% - Low Growth 0.3 10% Normal Growth 0.5 20% Calculate the expected return and...

please complete using excel. thank you!! PROBLEM 2: Part. A Based on the following data; State of the Economy Probability Stock A Rate of Return Recession 0.2 -5% Low Growth 0.3 10% Normal Growth 0.5...

PLEASE USE EXCEL AND SHOW FORMULAS PLEASE USE EXCEL AND SHOW FORMULAS PLEASE USE EXCEL AND SHOW FORMULAS PLEASE USE EXCEL AND SHOW FORMULAS PROBLEM 2: Part-A Based on the following data; State of the...

Please show work and formulas in Excel Based on the following data; State of the Economy Probability Stock A Rate of Return Recession 0.2 -5% Low Growth 0.3 10% Normal Growth 0.5 20% Calculate the...

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

I am needing help with this assignment. I feel like I am on the right track but I am confused on how to explain my findings on paper. 1. Calculate the stock's expected return, variance and standard...

Calculate the stock's expected return, variance and standard deviation. Explain the meaning of expected return, variance, and standard deviation. What do the answers actually mean? demand for the...

Please provide clear and detailed steps without using a scientific calculator com/#/books/9781473758704/cfi/212/4/2@100:0.00 Chapter 6 Risk and Return 195 (6-13) Expected Returns: Discrete...

analysts have estimated the following about a stock demand for Product probability of this demand associated rate of return weak 0.1 -50% below average 0.2 -5% average 0.4 16 above average 0.2 25...

During 2014, Roberto sold 830 shares of Casual Investor Mutual fund for $8.875 per share. The shares were purchased on the following dates: Calculate the gain (loss) on the sale under the following...

What is convergent evolution? Use evidence from the trees to explain how the Anolis lizards are an example of this concept.

Why are banker s acceptances so popular for international transactions?

A company is preparing completing their Cash Budget. The following data has been prepared for cash receipts and payments. January February March Cash receipts $1,061,200 $1,182,400 $1,091,700 Cash...