Question: please can you write the formula that you going to use EXPECTED RETURNS Stocks X and Y have the following probability distributions of expected future

please can you write the formula that you going to use

EXPECTED RETURNS Stocks X and Y have the following probability distributions of expected future returns: Probability Y 0.1 (10%) (35%) 0.2 2 o 0.4 12 20 0.2 20 25 0.1 38 45 a. b. Calculate the expected rate of return, fy, for Stock Y (fx = 12%). Calculate the standard deviation of expected returns, ox, for Stock X (Oy = 20.35%). Now calculate the coefficient of variation for Stock Y. Is it possible that most investors will regard Stock Y as being less risky than Stock X? Explain

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!

Chapter 8 Risk and Rates of Return 295 Intermediate 8-6 Problems 6-12 EXPECTED RETURNS Stocks X and Y have the following probability distributions of expected future returns: Probability X 0.1 (1096)...

8-6 EXPECTED RETURNS Stocks X and Y have the following probability distributions of expected future returns: Probability X Y 0.1 (106) (35%) 0.2 2 0 0.4 12 20 0.2 20 25 0.1 38 45 a. Calculate the...

Problem #4: EXPECTED RETURNS Stocks X and Y have the following probability distributions of expected future returns: TM Probability X 0.1 (10%) (35%) 0.2 2 0 0.4 12 20 0.2 20 25 0.1 38 45 a....

8-6 EXPECTED RETURNS Stocks X and Y have the following probability distributions of ntermediate roblems -12 expected future returns: Probability x 0.1 0.2 0.4 0.2 0.1 (10%) (35%) 12 20 38 20 25 45...

Expected returns Stocks X and Y have the following probability distributions of expected future returns: Probability X Y 0.1 -13% -37% 0.3 5 0 0.3 10 22 0.2 18 27 0.1 35 37 Calculate the expected...

8-6 EXPECTED RETURNS Stocks X and Y have the following probability distributions of expected future returns Probability (10%) (3596) 0.2 0.4 0.2 0.1 12 20 38 0 20 25 45 Calculate the expected rate of...

1. Marvin has investments with the following characteristics in his portfolio: Expected Investment rM rS abc 30% 10k efg 16% 50k qrp 20% 40k What is the expected return of Marvins portfolio of...

Type or paste question here EXPECTED RETURNS. Stocks X and Y have the following probability distributions of expected future returns: Probability 0.1 0.2 0.4 0.2 0.1 (10%) 2 12 Y (35%) 0 20 20 25 45...

8-6 EXPECTED RETURNS Stocks X and Y have the following probability distri- butions of expected future returns: Calculate the expected rate of return, f ., for Stock Y (f. = 12%). a. b. Calculate the...

Expected returns Stocks X and Y have the following probability distributions of expected future returns: Probability X Y 0.2 -12% -23% 0.2 5 0 0.3 10 22 0.2 23 25 0.1 34 47 1. Calculate the expected...

The following information relates to Carla Vista Limited's Cash account. The reconciled cash balance from June's bank reconciliation is $20,800. During the month of July, Carla Vista recorded cash...

Prepare journal entries to record the following transactions for DesmondCorporation: Apr. June Dec. 15 30 31 Declared a $48,000 cash dividend payable to common shareholders Paid the dividend declared...

Purchases in - process R&D from Corporation They report financial statements using GAAP. This R&D should be capitalized?

Companies can influence the calculation of pension expense by choosing a higher or lower discount rate and / or by choosing a higher or lower expected rate of return on plan assets. Group startsTrue...

LO6.1 Discuss price elasticity of demand and how it is calculated.

LO6.3 List the factors that affect price elasticity of demand and describe some applications of price elasticity of demand.

1. Explain the paradox of voting through reference to the accompanying table, which shows the ranking of three public goods by voters Jay, Dave, and Conan: LO5.3 Rankings Public Good Jay Dave Conan...