What is the standard deviation if there is a 25% chance of a poor economy and a 25% chance of a booming economy?
A company will earn 10% returns in a poor economy, 16% returns
in a normal economy, and 25% returns in a booming economy. What is
the standard deviation if there is a 25% chance of a poor economy
and a 25% chance of a booming economy?
The economy has a 10 percent chance of booming, 60 percent
chance of being normal, and 30 percent chance of going into a
recession. A stock is expected to return 16 percent in a boom, 11
percent in a normal, and lose 8 percent in a recession. The return
on real estate is 10% in a normal and a boom, and -10% in a
recession. What is the correlation between the return of the stock
and the return of real...
Assume that there are three possible states of the economy:
poor, moderate and booming. A firm expects to have $468,000 in
sales in a poor economy, $694,000 in a moderate economy, and
$915,000 in a booming economy. Suppose the profit margin, for this
firm, in a poor economy is 5.6 percent, 11.5 in a moderate economy
and 16.5 percent in booming economy. If the chance of a booming
economy is 25% and the chance of a poor economy is 15%,...
Assume that there are three possible states of the economy:
poor, moderate and booming. XYZ Corp expects to have $350,000 in
sales in a poor economy, $500,000 in a moderate economy, and
$900,000 in a booming economy. If the chances of a booming economy
and poor economy are 10% each, what is the expected amount of sales
for XYZ?
A. $500,000B. $512,500C. $525,000D. $621,000E. $805,0008.
Assume a fair coin and consider the following bet: heads I pay
you two dollars,...
What is wrong with the Ukrainian economy?
Construction is booming in Kyiv, Ukraine, but not the rest of
the economy. A major reason is that Ukrainians with some extra
savings do not put their money into banks but buy additional
apartments instead. Others keep their savings in cash. On average,
Ukrainian MPs keep $700,000 at home. Those who have a lot of wealth
transfer it to offshore havens, where the money is safe.
Ukraine is now the poorest country in...
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?
For a population with a mean equal to 150 and a standard
deviation equal to 25, calculate the standard error of the mean for
the following sample sizes. a) 20 b) 40 c) 60
a) The standard error of the mean for a sample size of 20 is
.______ (Round to two decimal places as needed.)
b) The standard error of the mean for a sample size of 40 is .
______(Round to two decimal places as needed.)
c) The...
Given that a sample is approximately
normal with a mean of 25 and a standard deviation of 2, the
approximate percentage of observation that falls between 19 and 31
is:
i. 67%
ii. 75%
iii. 95%
iv. 99.7%
v. can’t be determined with the information given
e. The Law of Large
Numbers implies the following:
i. To calculate a probability an experiment needs to be
theoretically
repeated
ii. Probabilities can be calculated...
You have a portfolio with a standard deviation of 25 % and an
expected return of 15 %. You are considering adding one of the two
stocks in the following table. If after adding the stock you will
have 20 % of your money in the new stock and 80 % of your money in
your existing portfolio, which one should you add? Expected
Return Standard Deviation Correlation with Your Portfolio's
Returns Stock A 15% 23% 0.4 Stock B 15%...
A distribution is normal with a mean of 25 and a standard
deviation of 3.
11. What is the median of the distribution?
12. What percent of the distribution lies between 22 and 28?
13. What percent of the distribution lies below 16?
14. What percent of the distribution lies above 28?
You are analyzing the returns of a mutual fund portfolio for the past 5 years.
Year
Return
2014
-30%
2015
-25%
2016
40%
2017
-10%
2018
15%
What is the standard deviation of the returns?