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.
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%
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?
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.
1.
A firm's stock has 50% chance of a 13% rate of return and
a 50% chance of a 20% rate of return. What is the
standard deviation of return for this stock?
Answer as a percent return to the
nearest hundredth of a percent as in xx.xx without entering a
percent symbol.
2.
A firm's stock has 50% chance of a 35% rate of return. a 30%
chance of a 18% rate of return. and a 20% chance of a -24%...
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?
8. Your investment has a 20% chance of earning a 25% rate of
return, a 50% chance of earning a 12% rate of return and a 30%
chance of losing 10%. What is your expected return on this
investment? What is the standard deviation? What is the coefficient
of variation?
Your investment has a 20% chance of earning a 26% rate of
return, a 50% chance of earning a 15% rate of return and a 30%
chance of losing 9%. What is your expected return on this
investment?
Enter answer in percents, accurate to two decimal places.
Scenario
Probability
Return on stock A
Return on stock B
Boom
50%
20%
2%
Normal
25%
15%
6%
Recession
25%
10%
12%
a) If you invest 70% of your funds into
stock A and 30% into stock B, what is the expected return of
your portfolio in each state of the economy?
b) Use your knowledge of risk and return
to explain why the portfolio is more heavily invested in Asset A
(70%) than Asset B (30%).
c) What is the overall expected...
Chance Inc's stock has an expected
return of 10%, a beta of 1.7, and is in
equilibrium. Assume the nominal
risk-free rate is 4.00%.
(a) what is the
market risk premium?
(b) What is the
equity risk premium?
Part A: Which of the following is incorrect?a. Risk Premium is the difference between the return on a risky
asset and a risk-free asset, which serves as compensation for
investors to hold riskier securities.b. The risk premium demanded by investors has historically been
larger for the stock market than the corporate bond marketc. The risk premium demanded by investors has historically been
larger for the small stocks than the large stocksd. From the investment perspective, small stocks seem to be...