ABC Inc.'s stock has a 30% chance of producing a 10% return, a 40% chance of...

ABC Inc.'s stock has a 30% chance of producing a 10% return, a 40% chance of

producing a 0% return, and a 30% chance of producing a -5% return. What is the firm's

expected rate of return?

Expert Solution

Ans 1.50%

	Probability (P)	RETURN (Y)	(P * Y )
	30%	10	3.00
	40%	0	0.00
	30%	-5	-1.50
		TOTAL	1.50


Expected Return =		(P * Y)
		1.50%

jeff jeffy answered 3 years ago

Taggart Inc.'s stock has a 50% chance of producing a 25% return, a 30% chance of...

Taggart Inc.'s stock has a 50% chance of producing a 25% return, a 30% chance of producing a 10% return, and a 20% chance of producing a −28% return. a. What is their expected rate of return? b. What is their standard deviation of returns? c. What is their coefficient of variation?

Dothan Inc.'s stock has a 25% chance of producing a 16% return, a 50% chance of...

Dothan Inc.'s stock has a 25% chance of producing a 16% return, a 50% chance of producing a 12% return, and a 25% chance of producing a -18% return. What is the firm's expected rate of return? Do not round your intermediate calculations. a. 4.51% b. 4.29% c. 5.50% d. 4.68% e. 6.38%

Stock has a 25% chance of producing a 36% return, a 50% chance of producing a...

Stock has a 25% chance of producing a 36% return, a 50% chance of producing a 12% return, and a 25% chance of producing a -18% return. What is the firm's standard deviation? Do not round your intermediate calculations.

If a stock has a 30% chance of losing 18%, a 40% chance of losing only...

If a stock has a 30% chance of losing 18%, a 40% chance of losing only 3%, and a 30% chance of making 15%, what is the expected return of this stock? -2.10% 7.25% 11.10% -7.25%

Your investment has a 30% chance of earning a 10% rate of return, a 40% chance of earning a 23% rate of return and a 30% chance of earning -7%. What is the standard deviation on this investment?

Your investment has a 30% chance of earning a 10% rate of return, a 40% chance of earning a 23% rate of return and a 30% chance of earning -7%. What is the standard deviation on this investment? (Put your answers in decimal points instead of percentage)You calculated that the average return of your portfolio is 7% and the standard deviation is 17%, what is the value at risk (VaR) at 5% for your portfolio?

Scenario Modeler’s prospective stock has a 15% chance of producing a 65% return, a 25% chance...

Scenario Modeler’s prospective stock has a 15% chance of producing a 65% return, a 25% chance of producing a 22% return, a 40% chance of producing a 7% return, and a 20% chance of producing a –24% return. What is the firm’s coefficient of variation of return? Enter your answer rounded to two decimal places. For example, if your answer is 12.345 then enter as 12.35 in the answer box.

Scenario Modeler’s prospective stock has a 15% chance of producing a 65% return, a 25% chance...

Scenario Modeler’s prospective stock has a 15% chance of producing a 65% return, a 25% chance of producing a 22% return, a 40% chance of producing a 9% return, and a 20% chance of producing a –24% return. What is the firm’s coefficient of variation of return? Deep Value, Inc.’s annual stock returns for the last ten years are: –5%, 15%, 11%, 18%, –8%, 9%, 16%, –3%, 3%, and 35%. The Market Index’s annual returns for the same ten years...

Question

ABC Inc.'s stock has a 30% chance of producing a 10% return, a 40% chance of...

Solutions

Expert Solution

Related Solutions

Taggart Inc.'s stock has a 50% chance of producing a 25% return, a 30% chance of...

Dothan Inc.'s stock has a 25% chance of producing a 16% return, a 50% chance of...

Stock has a 25% chance of producing a 36% return, a 50% chance of producing a...

If a stock has a 30% chance of losing 18%, a 40% chance of losing only...

Your investment has a 30% chance of earning a 10% rate of return, a 40% chance of earning a 23% rate of return and a 30% chance of earning -7%. What is the standard deviation on this investment?

Scenario Modeler’s prospective stock has a 15% chance of producing a 65% return, a 25% chance...

Scenario Modeler’s prospective stock has a 15% chance of producing a 65% return, a 25% chance...

Chance Inc's stock has an expected return of 10%, a beta of 1.7, and is in...

You believe Orange, Inc. stock has a 20% chance of making 11%, a 30% chance of...

firm’s stock has a 0.2 possibility to make 40.00% return, a 0.50 chance to make 10%...