Question: . please solve all questions urgent . i will forever grateful for you. thank you Questions 2: Calculating Expected Rate of Return, Standard Deviation and



. please solve all questions urgent . i will forever grateful for you. thank you
Questions 2: Calculating Expected Rate of Return, Standard Deviation and Sharpe Ratio (70 points) Stock Z Probability (p) Rate of Return (r 12 % 39 % or 0.39 The Economic Status Optimistic Most Likely 9% 50 % or 0.50 Pessimistic -7% 11 % or 0.11 1. Calculate the Expected Rate of Return E(r) for Stock Z. (write the formula and show your calculations) (20 points) 2. Calculate Standard Deviation for Stock Z (Make sure to calculate Variance first). (30 points) 3. Calculate the Sharpe Ratio, assuming risk free rate is 5%. (20 points) Part I: Define the following terms: Risk (the level of uncertainty) (10 points) Return (10 points) Part II: Fill in the blanks with (High Returns OR Low Returns): - Low risk is associated with (5 points) - High risk is associated with (5 points) Bonus Question: (10 Points) Amount to be received =3,500 $ Amount invested = 2,100 $ Calculate return as a money value: (5 points) Calculate return as a percentage: (5 points)
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
