Question

In: Finance

The stock of Business Adventures sells for $80 a share. Its likely dividend payout and end-of-year...

The stock of Business Adventures sells for $80 a share. Its likely dividend payout and end-of-year price depend on the state of the economy by the end of the year as follows: Stock Price Dividend Recession $76 $0.75 Normal economy 82 2.50 Boom 87 3.00 Calculate the expected holding-period return and standard deviation of the holding-period return. All three scenarios are equally likely.

Solutions

Expert Solution

Please upvote if the ans is helpful.In case of doubt,do comment.Thanks


Related Solutions

The stock of Business Adventures sells for $80 a share. Its likely dividend payout and end-of-year...
The stock of Business Adventures sells for $80 a share. Its likely dividend payout and end-of-year price depend on the state of the economy by the end of the year as follows: Stock Price Dividend Recession $76 $0.75 Normal economy    82    2.50 Boom    87    3.00 Calculate the expected return and standard deviation of a portfolio invested half in Business Adventures and half in Treasury bills. The return on bills is 3%.
The stock of Business Adventures sells for $60 a share. Its likely dividend payout and end-of-year...
The stock of Business Adventures sells for $60 a share. Its likely dividend payout and end-of-year price depend on the state of the economy by the end of the year as follows: Dividend Stock price   Boom $2.00     $73         Normal economy 1.50     63         Recession .70     59    Calculate the standard deviation of the holding-period return. All three scenarios are equally likely. (Do not round intermediate calculations. Round your answer to 4 decimal places) Standard deviation?
The stock of Business Adventures sells for $60 a share. Its likely dividend payout and end-of-year...
The stock of Business Adventures sells for $60 a share. Its likely dividend payout and end-of-year price depend on the state of the economy by the end of the year as follows:    Dividend Stock price   Boom $2.00     $73         Normal economy 1.50     63         Recession 0.70     59       Calculate the expected holding-period return. All three scenarios are equally likely. (Do not round intermediate calculations. Round your answer to 4 decimal places) Expected return? Use 0.01 Instead...
The stock of Business Adventures sells for $40 a share. Its likely dividend payout and end-of-year...
The stock of Business Adventures sells for $40 a share. Its likely dividend payout and end-of-year price depend on the state of the economy by the end of the year as follows: Dividend Stock Price Boom $2.00 $52 Normal economy 1.40 44 Recession .70 34 a. Calculate the expected holding-period return and standard deviation of the holding-period return. All three scenarios are equally likely. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Expected return % Standard...
The stock of Business Adventures sells for $60 a share. Its likely dividend payout and end-of-year...
The stock of Business Adventures sells for $60 a share. Its likely dividend payout and end-of-year price depend on the state of the economy by the end of the year as follows: Dividend Stock Price Boom $2.00 $70 Normal economy 1.80 63 Recession 0.90 54 a. Calculate the expected holding-period return and standard deviation of the holding-period return. All three scenarios are equally likely. (Do not round intermediate calculations. Round your answers to 2 decimal places.) b. Calculate the expected...
The stock of Business Adventures sells for $60 a share. Its likely dividend payout and end-of-year...
The stock of Business Adventures sells for $60 a share. Its likely dividend payout and end-of-year price depend on the state of the economy by the end of the year as follows: Dividend Stock Price Boom $2.00 $73 Normal economy 1.50 63 Recession 0.70 59 a. Calculate the expected holding-period return and standard deviation of the holding-period return. All three scenarios are equally likely. (Do not round intermediate calculations. Round your answers to 2 decimal places.) b. Calculate the expected...
The stock of Business Adventures sells for $55 a share. Its likely dividend payout and end-of-year...
The stock of Business Adventures sells for $55 a share. Its likely dividend payout and end-of-year price depend on the state of the economy by the end of the year as follows: Dividend Stock Price Boom $2.10 $65 Normal economy 1.40 58 Recession 0.50 49 a. Calculate the expected holding-period return and standard deviation of the holding-period return. All three scenarios are equally likely. (Do not round intermediate calculations. Round your answers to 2 decimal places.) b. Calculate the expected...
The stock of Business Adventures sells for $50 a share. Its likely dividend payout and end-of-year...
The stock of Business Adventures sells for $50 a share. Its likely dividend payout and end-of-year price depend on the state of the economy by the end of the year as follows: [(boom $2.00 dividend $58 stock price),(normal economy $2 dividend and $54 stock price) (recession $0.50 dividend and $39.5 stock price)] Calculate the expected holding period return and standard deviation of the holding period return, the boom and normal economy states are 40% likely to happen. calculate the expected...
The stock of Business Adventures sells for $35 a share. Its likely dividend payout and end-of-year...
The stock of Business Adventures sells for $35 a share. Its likely dividend payout and end-of-year price depend on the state of the economy by the end of the year as follows:    Dividend Stock price   Boom $1.20     $45         Normal economy 1.20     38         Recession .60     26       a. Calculate the expected holding-period return and standard deviation of the holding-period return. All three scenarios are equally likely. (Do not round intermediate calculations. Round your answers to...
The stock of Business Adventures sells for $65 a share. Its likely dividend payout and end-of-year...
The stock of Business Adventures sells for $65 a share. Its likely dividend payout and end-of-year price depend on the state of the economy by the end of the year as follows:     Dividend Stock price   Boom $2.40     $73         Normal economy 1.60     66         Recession .85     57       a. Calculate the expected holding-period return and standard deviation of the holding-period return. All three scenarios are equally likely. (Do not round intermediate calculations. Round your answers to...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT