You believe Orange, Inc. stock has a 20% chance of making 11%, a
30% chance of...
You believe Orange, Inc. stock has a 20% chance of making 11%, a
30% chance of making 16% and a 50% chance of losing 6%. What is the
standard deviation of Orange, Inc. stock return?
You believe that there is a 20% chance that Astro company’s
share will drop by 11% and 80% chance that it will increase by 17%.
In addition, there is a 25% chance that OCK Group Berhad company’s
share will drop by 15% and a 75% chance that it will increase by
24%. The covariance is 0.009.
Calculate the expected return, the variance, the standard
deviation, and the correlation for each share.
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?
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?
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%
In a SINGLE day I have a 60% chance of making 0 sales, 30%
chance of making 1 sale
and 10% chance of making 2 sales.
(a) Write out the PDF for the number of sales made in TWO
days
Delta Inc. stock currently trades for $30, but you believe the
share price will increase over the next six months. Six-month
European call options on the stock have an exercise price of $35
and a premium of $.90. The annual risk free rate is
3%. You want to create a portfolio that mimics the
payoff of writing a 6-month European put on the stock with an
exercise price of $35. Which of the following steps must you do in
order to achieve...
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%
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.
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.
You own a stock portfolio invested 30 percent in stock
Q, 20 percent in stock R, 35 percent in stock S, and 15 percent in
stock T. The bestas for these four stocks are .85 1.18, 1.02, and
1.20, respectively. what is the portfolio beta?