Question: Using the below data, calculate the expected return, variance and standard deviation for Company B shares in the table below for different states of the

Using the below data, calculate the expected return, variance and standard deviation for Company B shares in the table below for different states of the economy.(4 +7+ 4 marks)

State of the economy Probability Company B

Boom 35% 22%

Expansion 40% 15%

Recession 25% -13%

Answer and show workings here]

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!

... Optus 3:02 PM 62% 4 BAP53 A T3 2020 FEX copy copy Jamberoo (WACC) = Question 5 (15 marks) Using the below data, calculate the expected return, variance and standard deviation for Company B shares...

Using the below data, calculate the expected return, variance and standard deviation for Company B shares in the table below for different states of the economy. (4 +7+ 4 marks) State of the economy...

Question 1 [ 25marks) (a) Rukahia Knighting, ACCA, and Obiapeasempa King Inr, CFA, are independently analysing the value of Adobia Energy (Ghana) ltd stock. Adobia Energy paid dividend for the past...

Using information in the Table 4.1 below, calculate the expected return, variance and standard deviation of Primo share. (10) Table 4.1 Return of Primo share for various state of economy State of...

Please complete all parts and show work. Thank you!!!! Part II: Quantitative Analysis Question (20 marks) 1. Details of two "stocks" are recapped below, for three possible future economic states....

Question 1 - Complete the table below to calculate the Expected Return, Variance, and Standard Deviation for the stocks of Home Depot, Inc (HD) and Lowe's Companies, Inc (LOW) given the different...

**Show All Formulas Question 1- Complete the table below to calculate the expected Return, Variance, and Standard Deviation for the stocks of Home Depot, Inc (HD) and Lowe's Companies, Inc (LOW)...

You work as a You work as an economic analyst for an investment firm. You believe there are four possible states for the economy over the next year: Boom, Good, Poor, Bust. Your colleague Tosha has...

I am needing help with putting my answers in Excel and using Excel formulas to come up with the answers. Please find attached the work I need input in excel formulas P6-1 In this advanced problem,...

You work as an economic analyst for an investment firm. You believe there are four possible states for the economy over the next year: Boom, Good, Poor, Bust. Your colleague Tosha has estimated the...

Suppose that a system uses a combination of 2 frequencies and 2 amplitudes to transmit at 9600 baud (symbol/second), How many discrete levels does it has? - what is the maximum data rate? Assume...

What are the key elements of a public relations strategy?

M = 1 0 0 0 n = 3 years Coupon Rate = 5 % ( paid annually ) r = 4 . 7 5 % B _ 0 = 1 0 0 6 . 8 4 Sum of PV of time weighted CFs = 2 8 7 9 . 4 9 Duration for the bond is a . - 3 . 1 2 b . - 2 . 8 6 c ....

Preparing an Income Statement using Excel's SUM, Basic Math Functions and Cell Referencing Great Taste Restaurants, Inc. has provided a list of select accounts as of March 31, 2016. The Controller...