Consider the following information: Rate of Return If State Occurs Probability of State of State of Economy Stock A Stock B Economy Recession 16 04 - 20 Normal .61 08 .09 Boom 23 15 26
Q: Given the following information, what is the standard deviation for VirtVaccine Inc.'s stock?…
A: Computation:
Q: Use the following information on states of the economy and stock returns to calculate the standard…
A: Expected return = Probability * Return Variance = Sum of( Squared deviation between return and…
Q: Return if State Occurs Probability of State State of Economy Stock A Stock B Bust .10 -.12 -.05…
A: The table is: State of economy Probability of state Stock A Stock B Bust 0.1 -0.12 -0.05…
Q: Use the following information on states of the economy and stock returns to calculate the expected…
A: The expected return can be calculated as sum of probability of state multiplied by respective…
Q: Find the expected return. State of the Economy Probability of State Occurring Stock's Expected…
A: The table is: State of the economy Probability of state occurring Stock's expected return Boom…
Q: Given the following information, what is the variance of the returns on this stock? State of Economy…
A: Variance refers to the deviation from the standards, and it implies the range to within which the…
Q: Consider the following information: Rate of Return If State Occurs State of Probability of State of…
A: A statistical measure that represents the variation in the return on the stock is term as the…
Q: What is the expected return for Big Tech Co. Stock given the following information? 3. Stock…
A: Expected return can be defined as the return which an investor expects to be generate on a project…
Q: There is 9 percent probability of recession, 24 percent probability of a poor economy, 44 percent…
A: The expected rate of return is the amount of interest an investor can hope to receive on an average…
Q: You are given the following information: State of Economy Probability ofState of Economy Rate of…
A: Expected return can be defined as the return which an investor expects to be generate on a project…
Q: Mystery Motors, Inc. stock has the following forecasted returns for various states of the economy:…
A: Here, To Find: Standard deviation =?
Q: What is the standard deviation of the returns on a stock given the following information?…
A: Standard deviation formula: standard deviation=∑i=1nxi-expected return×piwhere,XI= rate of return of…
Q: Consider the following information: Rate of Return If State Occurs State of Probability of State of…
A: Portfolio return is calculated by weighted average return of the stocks. Portfolio Return Rp = Wa*Ra…
Q: I1 12 1 3 1 4 15 '7 1 8 1 9 1 10 1 11 I 12 1 13 1 14 I · 15 9 1 1. 1. Based on the following…
A: Expected return =p1 r1 +p2 r2+p3 r3 Return are taken in percentage to easily calculate. Expected…
Q: Consider the following information: Probability of State of Economy Portfolio Return If State Occurs…
A: Expected Return: The expected return is the minimum required rate of return which an investor…
Q: You are given the following information: ETT State of Economy State of Economy If State Occurs…
A:
Q: 4. Based on the following information Calculate Rate of Return if State Occurs Stock B State of…
A: Standard deviation represents the measurement of variation in the amount of values.
Q: You have been given the following information: Rate of Return If State Occurs State of…
A: The expected rate of return is the average amount of interest that investing in stock provides while…
Q: State of Economy Probability of State of Economy Rate of Return if State Occurs Recession .21…
A: Expected return = 0.21*-13% + 0.49*15% + 0.30*34%
Q: Drawing Examples ven the following information, what is e standard deviation of the returns on is…
A: In this first we have to calculate mean return and deviations from mean and from that.
Q: onsider the following information: Probability of State of Economy Rate of Return if St Occurs Stoc…
A: Expected return of the stock depends the return under the probabilistic scenario of the different…
Q: Rate of Return if State Occurs Stock State of Economy Probability of State of Economy Stock A Stock…
A: Here, probability of each state and their rtun for each stock is given. Also, weight of each stock…
Q: The following information showed: State of the Economy Probability of the…
A: Expected return =summation of returns ×probabilities =(13%×20%)+(10%×55%)+(5%×25%) = 9.35%
Q: a. Calculate the expected return for Stocks A and B. (Do not round intermediate calculations and…
A: Expected return refers to the return earn by an investor on the amount invested during a period of…
Q: Calculate the expected return on stock: State of the economy Probability of the state Percentage…
A: The provided table is: State of the economy Probability of the state Percentage returns on stock…
Q: Consider the following information: State of Economy Probability of State of Economy Rate of…
A: The expected return is the rate of return an asset generates after taking probabilities of different…
Q: Use the following information to calculate your company's expected return. State…
A: Expected return refers to the investor’s predicted amount of profit and loss on an investment.…
Q: Forecasted returns for Stock A: State…
A: Expected Return is calculated as: ER = ∑i =1nRiPi where, R = return in scenario i P = probability…
Q: ased on the following information, what is the standard deviation of returns? State of Economy…
A: Standard deviation :- A standard deviation is a statistic that determines how far a dataset deviates…
Q: Review the following market information: Current Stock Market Return 11.25%…
A: As per CAPM, Required Return = Risk free Rate + Beta * (Market return - risk free rate) where, Risk…
Q: There is 11 percent probability of recession, 14 percent probability of a poor economy, 44 percent…
A: A stock is a portion of equity of a corporation that the corporation issues in the financial markets…
Q: Consider the following returns and states of the economy for TZ.Com.: Economy Probability…
A: Firstly, Variance has to be calculated through following steps:
Q: Consider the following information: Probability of State of Portfolio Return if State State of…
A: Expected return is rate of return an investor can anticipate receiving on an investment. To find the…
Q: Suppose you have predicted the following returns for stock C in three possible states of nature.…
A: The expected rate of return is the weighted return that an investor receives based on the various…
Q: Consider the following information: Rate of Return if State Occurs Probability of State of Economy…
A: As per the Bartleby guidelines, experts can attempt only 1 question if two unrelated questions are…
Q: Consider the following information: Probability of State of Rate of Return If State of Economy State…
A: Expected return = Probability of state of economy x Rate of return
Q: State of Economy Probability of State of Economy Rate of Return if State Occurs Stock A Stock B…
A: we will only answer the first three subparts. For the remaining subparts, kindly resubmit the…
Q: What is the standard deviation of the returns on a stock given the following information? State of…
A: Given data is - State of Economy Probability of state of economy Returns Recession 0.05 6%…
Q: Forecasted returns for Stock A: State…
A: Standard deviation = √∑p*(r-E(r))2 Expected return E(r) = ∑p*r
Q: Based on the following information, what is the standard deviation of returns? Probability of State…
A: Standard Deviation measures the dispersion of a dataset from the mean. To compute the standard…
Q: State of the Economy Probability Market Return Investment ReturnExpansion 0.30 40% 60%Normal 0.50…
A: Correlation of two set of data is the relation between the changes in the variables in comparative…
Q: calculate the expected return Rate of return State of Economy Recession Probability Stock A Stock B…
A: Expected rate of return is the profit or loss on the investor that is assumed to be anticipated by…
Q: Consider the following information: Rate of Probability of State Return State of if State Economy…
A: Expected return is used to find out whether an investment has positive or negative net outcome and…
Q: tock W has the following returns for various states of the economy: State of the Economy…
A: Stock W return = (Probability 1 * Return 1) + (Probability 2* Return 2) + ....+ (Probability N *…
Q: Consider the following information: Probability of State of State of Rate of Return If State Occurs…
A: Expected return = (Probability of Recession x Rate of return) + (Probability of Normal x Rate of…
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- Consider information given in the table below and answers the question asked thereafter: State Probability return on stock A Return on stock B A 0.15 10% 9% B 0.15 6% 15% C 0.10 20% 10% D 0.18 5% -8% E 0.12 -10% 20% F 0.30 8% 5% Calculate covariance and coefficient of correlation between the returns of thestocks A and B.v. Now suppose you have $100,000 to invest and you want to a hold a portfoliocomprising of $45,000 invested in stock A and remaining amount in stock B.Calculate risk and return of your portfolio.Given the returns and probabilities for the three possible states listed below, calculate the covariance between the returns of Stock A and Stock B. For convenience, assume that the expected returns of Stock A and Stock B are 8.10 percent and 11.60 percent, respectively. (Round answer to 4 decimal places, e.g. 0.0768.) Good OK Poor Covariance Probability 0.22 0.60 0.18 Return on Stock A 0.30 0.10 -0.25 Return on Stock B 0.50 0.10 -0.30Suppose that the index model for stocks A and B is estimated from excess returns with the following results: RA = 0.03 + 0.7 RM + eA RB = -0.02+ 1.2 RM + eB σM =0.20; R-square A = 0.25 R-square B = 0.20 What is the standard deviation of A & B, respectively? Group of answer choices 0.54, 0.28 0.28, 0.54 0.45, 0.50 0.50, 0.45
- You are given the following information: State ofEconomy Return onStock A Return onStock B Bear .112 −.055 Normal .105 .158 Bull .083 .243 Assume each state of the economy is equally likely to happen. a. Calculate the expected return of each stock. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) b. Calculate the standard deviation of each stock. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) c. What is the covariance between the returns of the two stocks? (A negative answer should be indicated by a minus sign, Do not round intermediate calculations and round your answer to 6 decimal places, e.g., .161616.) d. What is the correlation between the returns of the two stocks? (A negative answer should be indicated by a minus sign, Do not round intermediate calculations and round your answer to 4…Based on the following information: State of Economy Probability of State of Economy Return on Stock J Return on Stock K Bear .20 -.030.024 Normal .55.128.052 Bull .25 .208.082 a. Calculate the expected return for each of the stocks. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) b. Calculate the standard deviation for each of the stocks. ( Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g , 32.16.) c. What is the covariance between the returns of the two stocks? (Do not round intermediate calculations and round your answer to 6 decimal places, e.g., .161616.) d. What is the correlation between the returns of the two stocks? (Do not round intermediate calculations and round your answer to 4 decimal places, e.g., .1616.)The market and Stock J have the following probability distributions: Probability rM rJ 0.3 14 % 18 % 0.4 10 4 0.3 18 13 Calculate the expected rates of return for the market and Stock J. Round your answers to one decimal place. Expected rate of return (Market): % Expected rate of return (Stock J): % Calculate the standard deviations for the market and Stock J. Do not round intermediate calculations. Round your answers to two decimal places. Standard deviation (Market): % Standard deviation (Stock J): %
- Consider the following information: Rate of Return If State Occurs State of Probability of State of Economy Stock A Economy Stock B Recession .15 .06 - 10 Normal .56 .09 .19 Вoom .29 .14 .36 . Calculate the expected return for Stocks A and B. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) . Calculate the standard deviation for Stocks A and B. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Stock A expected return % Stock B expected return % Stock A standard deviation % Stock B standard deviation %(Expected rate of return and risk) Syntex, Inc. is considering an investment in one of two common stocks. Given the information that follows, which investment is better, based on the risk (as measured by the standard deviation) and return? Common Stock A Probability 0.25 0,50 0.25 Probability 0.10 0.40 0.40 0.10 (Click on the icon in order to copy its contents into a apreadsheet) Common Stock B Return 10% 17% 18% Return -4% 7% 13% 20% G a. Given the information in the table, the expected rate of return for stock A is 15.5% (Round to two decimal places) The standard deviation of stock A is (Round to two decimal places.)You run a regression for the Tesla stock return on a market index to estimate the SML equation and find the following Excel output: Multiple R R-Square Adjusted R-Square Standard Error Observations Intercept Market = 0.28 0.25 0.02 40.01 60 13.35 and 0.97 0.8 and 0.1 0.28 and 0.25 0.26 and 1.36 0.2 and 0.75 Coefficients Standard Error t-Stat p-Value 0.2 0.75 The resulting SML equation for Laternios is given by: Er Laternios] 13.35 0.26 0.80 0.97 1.36 0.10 + __ × (E[rM] - rf)
- You are given the following information: State of Economy Bear Normal Bull Return on Stock A a. Stock A Stock B b. Stock A Stock B 114 103 085 Assume each state of the economy is equally likely to happen. a. Calculate the expected return of each stock. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) b. Calculate the standard deviation of each stock. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) c. What is the covariance between the returns of the two stocks? (A negative answer should be indicated by a minus sign, Do not round intermediate calculations and round your answer to 6 decimal places, e.g., .161616.) d. What is the correlation between the returns of the two stocks? (A negative answer should be indicated by a minus sign, Do not round intermediate calculations and round your answer to 4 decimal places, e.g., .1616.) Return on Stock B C.…Consider the following information: a. Calculate the expected return for Stocks A and B. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) b. Calculate the standard deviation for Stocks A and B. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)Suppose the expected returns and standard deviations of Stocks A and B are E(RA) = .092, E(RB) = 152, đA = .362, and Og = .622. %3D Calculate the expected return of a portfolio that is composed of 37 percent A and 63 percent B when the correlation between the returns on A and B is .52. (Do not a-1. round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Calculate the standard deviation of a portfolio that is composed of 37 percent A and 63 percent B when the correlation coefficient between the returns on A and B is .52. а-2. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Calculate the standard deviation of a portfolio with the same portfolio weights as in h part (a) when the correlation coefficient between the returns on A and B is -.52. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a-1.…