Question
In: Finance
Calculate the expected standard deviation on stock: State of the economy Probability of the states Percentage...
Calculate the expected standard deviation on stock:
| State of the economy | Probability of the states | Percentage returns | |
|---|---|---|---|
| Economic recession | 11% | -8% | |
| Steady economic growth | 28% | 10% | |
| Boom | Please calculate it | 11% |
Solutions
Expert Solution
Variance and Standard Deviation are calculated as in the case of a discrete probability distribution, rounding off to four decimals.
The Standard Deviation is 7.2687 Step-by step details of the calculation with the formula applied are given below, as image.
jeff jeffy answered 1 year agoRelated Solutions
Calculate the expected standard deviation on stock: State of the economy probability of the states percentage...
Calculate the expected standard deviation on stock:
State of the economy
probability of the states
percentage returns
Economic recession
16%
5%
Steady economy
39%
9%
Boom
Please calculate it
18%
Round the answers to two decimal places in percentage form.
Calculate the expected standard deviation on stock: State of the economy Probability of the states Percentage...
Calculate the expected standard deviation on stock:
State of the economy
Probability of the states
Percentage returns
Economic recession
21%
0%
Steady economic growth
26%
5%
Boom
Please calculate it
17%
state of the economy probability of occurrence expected return on stock A expected return on stock...
state of the economy
probability of occurrence
expected return on stock A
expected return on stock B
High growth
0.1
60%
5%
Moderate growth
0.2
20%
20%
No growth
0.5
10%
5%
Recession
0.2
-25%
0%
1)Calculate the weighted average of the standard deviation
of individual stocks A and B ; and show that each portfolio
standard deviation is less than this weighted average except the
portfolio standard deviation with correlation of 1.
2) Given correlation of -1, what portfolio...
Use the following table of states of the economy and stock returns to calculate the percentage...
Use the following table of states of the economy and stock
returns to calculate the percentage standard deviation of a
portfolio of a portfolio of 40 percent Roll and the rest in
Ross.
Security
if State
Returns
Occurs
Prob of State of Economy
Roll
Ross
Bust
0.1
-17%
27%
Boom
?
39
9
Use the following table of states of the economy and stock returns to calculate the expected...
Use the following table of states of the economy and stock
returns to calculate the expected return on a portfolio of 50
percent Roten and the rest in Bradley.
Security
if State
Returns
Occurs
Prob of State of Economy
Roten
Bradley
Bust
0.3
-7%
31%
Boom
?
49
13
Use the following information on states of the economy and stock returns to calculate the expected...
Use the following information on states of the economy and stock
returns to calculate the expected return for Dingaling Telephone:
(Do not round intermediate calculations. Enter your answer
as a percent rounded to 2 decimal places.)
State of Economy
Probability of
State of Economy
Security Return
If State Occurs
Recession
0.4
-11
%
Normal
0.2
16
Boom
?
23
Calculate the expected return based on the information in the table below State of economy Probability...
Calculate the expected return based on the information in the
table below
State of economy
Probability of state of economy
Rate of return if state occurs
Recession
.30
-.07
Normal
.60
.13
Boom
.10
.23
Use the following information on states of the economy and stock returns to calculate the standard...
Use the following information on states of the economy and stock
returns to calculate the standard deviation of returns. (Do
not round intermediate calculations. Enter your answer as a percent
rounded to 2 decimal places.)
State of Economy
Probability of
State of Economy
Security
Return
if State Occurs
Recession
.35
−10.00
%
Normal
.50
7.00
Boom
.15
17.00
Expected return and standard deviation. Use the following information to answer the questions. State of Economy...
Expected return and standard deviation. Use
the following information to answer the questions.
State of
Economy
Probability
of State
Return on
Asset R in
State
Return on
Asset S in
State
Return on
Asset T in
State
Boom
0.29
0.035
0.300
0.470
Growth
0.36
0.035
0.140
0.330
Stagnant
0.21
0.035
0.180
0.035
Recession
0.14
0.035
−0.035
−0.160
a. What is the expected return of each
asset?
b. What are the variance and the standard
deviation of each asset?
c. What...
Expected return and standard deviation. Use the following information to answer the questions. State of Economy...
Expected return and standard deviation.
Use the following information to answer the questions.
State of
Economy
Probability
of State
Return on Asset J in
State
Return on Asset K in
State
Return on Asset L in
State
Boom
0.24
0.055
0.210
0.290
Growth
0.38
0.055
0.130
0.190
Stagnant
0.22
0.055
0.030
0.070
Recession
0.16
0.055
−0.090
−0.220
a. What is the expected return of each asset?
b. What is the variance and the standard deviation of each
asset?
c. What...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Will iron(III) hydroxide precipitate from a pH = 1.00 solution with [Fe3+] = 1.0 x 10-5?...
- What do you believe happens during the final scene of the story between the brothers at....
- A 5.171 g sample of a solid, weak, monoprotic acid is used to make a 100.0...
- 1. Creep is one of deformation that occurred in concrete structure. Give one example that can...
- Why does a particular codon represent only one specific amino acid?
- Write a function template sort that takes two references to generic objects and switches them if...
- What 2 things happen to the melting point of a solid when an impurity is present?
ADVERTISEMENT