You are a financial analyst, and you are tasked with calculating the expected return and standard deviation of returns for Kershaw Enterprises. Toward that end you are given the following data: · In an expanding economy Kershaw is expected to earn 5.30% · In a booming economy Kershaw is expected to earn 9.50%; · In a contracting economy Kershaw is expected to earn 3.50% · In a recession Kershaw is expected to earn -1.20%; · The probabilities for expansion, boom, contraction and recession are 20%, 25%, 35% and 20% respectively.
You are a financial analyst, and you are tasked with calculating the expected return and standard deviation of returns for Kershaw Enterprises. Toward that end you are given the following data: · In an expanding economy Kershaw is expected to earn 5.30% · In a booming economy Kershaw is expected to earn 9.50%; · In a contracting economy Kershaw is expected to earn 3.50% · In a recession Kershaw is expected to earn -1.20%; · The probabilities for expansion, boom, contraction and recession are 20%, 25%, 35% and 20% respectively.
Essentials of Business Analytics (MindTap Course List)
2nd Edition
ISBN:9781305627734
Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Chapter15: Decision Analysis
Section: Chapter Questions
Problem 4P: Investment advisors estimated the stock market returns for four market segments: computers,...
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You are a financial analyst, and you are tasked with calculating the expected return and standard deviation of returns for Kershaw Enterprises. Toward that end you are given the following data:
· In an expanding economy Kershaw is expected to earn 5.30%
· In a booming economy Kershaw is expected to earn 9.50%;
· In a contracting economy Kershaw is expected to earn 3.50%
· In a recession Kershaw is expected to earn -1.20%;
· The probabilities for expansion, boom, contraction and recession are 20%, 25%, 35% and 20% respectively.
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