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In: Finance
An investment opportunity has 4 possible outcomes. The possible returns in each of these outcomes are...
An investment opportunity has 4 possible outcomes. The possible returns in each of these outcomes are -10.5%, -2.1%, 3.2% and 23.5%. If each of these outcomes is equally likely, what is the Expected Return (as measured by the population mean) of this investment? Provide the answer as a % with 1 decimal rounded off. If your answer is 3.56%, just enter/type "3.6"
Solutions
jeff jeffy answered 2 years agoRelated Solutions
An investment opportunity has 4 possible outcomes. The possible returns in each of these outcomes are...
An investment opportunity has 4 possible outcomes. The possible
returns in each of these outcomes are -23.2%, -5.9%, 9.3% and
33.5%. If each of these outcomes is equally likely, what is the
Expected Return (as measured by the population mean) of this
investment? Provide the answer as a % with 1 decimal rounded off.
If your answer is 3.56%, just enter/type "3.6"
An investment opportunity has 4 possible outcomes. The possible returns in each of these outcomes are -16.2%, -8.7%, 1.7% and 38%.
An investment opportunity has 4 possible outcomes. The
possible returns in each of these outcomes are -16.2%, -8.7%, 1.7%
and 38%. If each of these outcomes is equally likely, what is the
Expected Return (as measured by the population mean) of this
investment? Provide the answer as a % with 1 decimal rounded off.
If your answer is 3.56%, just enter/type"3.6"
The possible outcomes for the returns on Stock X and the returns on the market portfolio...
The possible outcomes for the returns on Stock X and the returns
on the market portfolio have been estimated as follows:
Scenario
Stock X
Market Portfolio
1
-3%
6%
2
14%
12%
3
22%
18%
A) 2.1
B) 0.7
C) 1.0
D) none of the above
The possible outcomes for the returns on Stock X and the returns on the market portfolio...
The possible outcomes for the returns on Stock X and the returns
on the market portfolio have been estimated as follows:
Scenario
Stock X
Market portfolio
1
-3%
6%
2
14%
12%
3
22%
18%
Calculate the market beta for Stock X. Round your answer to the
nearest tenth.
A) 2.1
B) 0.7
C) 1.0
D) none of the above
The possible outcomes for the returns on Stock X and the returns on the market portfolio...
The possible outcomes for the returns on Stock X and the returns
on the market portfolio have been estimated as
follows:
Scenario
Stock X
Market
portfolio
1
9%
10%
2
21%
13%
3
13%
11%
Each scenario is considered to be equally likely to occur.
Calculate the covariance of the returns of Stock X and the market
portfolio.
A) 0.03%
B) 0.57%
C)
1.62%
D) 0.06%
A person has $20,000 to invest in four possible opportunities. Each opportunity will accept investments in...
A person has $20,000 to invest in four possible opportunities.
Each opportunity will accept investments in $1,000 units, but only
after the required minimum investment has been made.The minimums
are $2, $2, $3 and $4 thousand, respectively. How many investment
strategies are possible if: (a) An investment must be made in each
opportunity? (b) Investment are made in at least three
opportunities?
A research project would require initial investment of 100,000. There are three possible outcomes for this...
A research project would require initial investment of 100,000.
There are three possible outcomes for this project:
a.) 30% probability that investment yields annual income of
35,000 for six year (starting from year 1 to year six) and zero
salvage value
b.) 50% probability that investment yields annual income of 25,000
for six year (starting from year 1 to year six) and zero salvage
value
c.) 20% probability of failure that yields zero annual income but
salvage value of 75,000...
You are considering investing in a project with the following possible outcomes: Probability of Investment States...
You are considering investing in a project with the following
possible outcomes:
Probability of
Investment
States Occurrence Returns
State 1: Economic boom 20% 16%
State 2: Economic growth 40%
12%
State 3: Economic decline 20%
5%
State 4: Depression 20%
-5%
Calculate the standard deviation of returns for this investment.
Round to the nearset hundredth percent. Answer in the percent
format. Do not include % sign in your answer (i.e. If your answer
is 4.33%, type...
Possible outcomes for three investment alternatives and their probabilities of occurrence are given next. Alternative...
Possible outcomes for three investment alternatives and their
probabilities of occurrence are given
next.
Alternative 1
Alternative 2
Alternative 3
Outcomes
Probability
Outcomes
Probability
Outcomes
Probability
Failure
60
.20
70
.20
80
.20
Acceptable
60
.40
220
.40
250
.60
Successful
130
.40
240
.40
415
.20
Using the coefficient of variation, rank the three alternatives in
terms of risk from lowest to highest. (Do not round
intermediate calculations. Round your answers to 3 decimal
places.)
****URGENT****** 1A) An event has four possible outcomes, A, B, C, and D. All of the outcomes...
****URGENT******
1A) An event has four possible outcomes, A, B, C, and
D. All of the outcomes are disjoint.
Given that P(Bc) = 0.2, P(A) = 0.1,
and P(C) = 0.3, what is P(D)?
1B) A study was conducted on a potential association between
drinking coffee and being diagnosed with clinical depression. All
18,832 subjects were female. The women were free of depression at
the start of the study in 1996. Information was collected on coffee
consumption and the incidence of...
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