A stock's return has the following distribution: Demand for the Company's Products Probability of This Demand Occurring Rate of Return if This Demand Occurs (%) Weak 0.1 - 25% Below average 0.2 - 9 Average 0.4 10 Above average 0.2 40 Strong 0.1 70 1.0 Calculate the stock's expected return and standard deviation. Do not round intermediate calculations. Round your answers to two decimal places. Expected return: % Standard deviation: %

A stock's return has the following distribution: Demand for the Company's Products Probability of This Demand Occurring Rate of Return if This Demand Occurs (%) Weak 0.1 - 25% Below average 0.2 - 9 Average 0.4 10 Above average 0.2 40 Strong 0.1 70 1.0 Calculate the stock's expected return and standard deviation. Do not round intermediate calculations. Round your answers to two decimal places. Expected return: % Standard deviation: %

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

See similar textbooks

Similar questions

A stock's returns have the following distribution. Demand for the Company's Products Probability of this Demand Occurring Rate of Return if this Demand Ocours Weak 0.1 (30%) Below average 0.1 (12) Average 0.3 13 Above average 0.322 Strong 0.2 53 1.0 Assume the risk-free rate is 3%. Calculate the stock's expected return, standard deviation, coefficient of variation, and Sharpe ratio. Do not round intermediate calculations. Round your answers to two decimal places. Stock's expected retum. % Standard deviation: Coefficient of variation: Sharpe ratio:
4. Problem 2-05 (Expected Return: Discrete Distribution) RE Expected Return: Discrete Distribution A stock's return has the following distribution: Demand for the Company's Products Weak Below average Average Above average Strong eBook % Probability of This Demand Occurring % 0.1 0.2 0.4 0.2 0.1 1.0 Calculate the stock's expected return. Round your answer to two decimal places. Rate of Return if This Demand Occurs (%) -45% -7 10 40 65 Calculate the standard deviation. Do not round intermediate calculations. Round your answer to two decimal places.
EXPECTED RETURN A stock's returns have the following distribution: Demand for the Company's Products Weak Below average Average Above average Strong Probability of This Demand Occurring Rate of Return If This Demand Occurs 0.1 0.2 0.4 0.1 0.2 1.0 a. Calculate the stock's expected return. Round your answer to two decimal places. % (44%) (13) 17 26 52 b. Calculate the stock's standard deviation. Do not round intermediate calculations. Round your answer to two decimal places. % c. Calculate the stock's coefficient of variation. Round your answer to two decimal places.
1. Problem 8.01 (Expected Return) A stock's returns have the following distribution: Demand for theCompany's Products Probability of thisDemand Occurring Rate of Return ifthis Demand Occurs Weak 0.1 (22%) Below average 0.2 (14) Average 0.3 13 Above average 0.3 27 Strong 0.1 47 1.0 Assume the risk-free rate is 3%. Calculate the stock's expected return, standard deviation, coefficient of variation, and Sharpe ratio. Do not round intermediate calculations. Round your answers to two decimal places. Stock's expected return: % Standard deviation: % Coefficient of variation: Sharpe ratio:
Quantitative Problem: You are given the following probability distribution for CHC Enterprises: State of Economy Probability Rate of return Sharpe ratio = (Return - Risk-free rate)/o 0.25 0.55 0.20 22% Strong Normal 8% -4% Weak What is the stock's expected return? Do not round intermediate calculations. Round your answer to two decimal places. 9.1 % % What is the stock's standard deviation? Do not round intermediate calculations. Round your answer to two decimal places. What is the stock's coefficient of variation? Do not round intermediate calculations. Round your answer to two decimal places.
Stocks A and B have the following probability distributions of expected future returns: a. Calculate the expected rate of return, TB, for Stock B (A = 13.80%.) Do not round intermediate calculations. Round your answer to two decimal places. % Probability 0.1 0.1 0.5 0.2 0.1 b. Calculate the standard deviation of expected returns, JA, for Stock A (OB = 20.40%.) Do not round intermediate calculations. Round your answer to two decimal places. % -Select- A (11%) 6 13 20 38 Now calculate the coefficient of variation for Stock B. Do not round intermediate calculations. Round your answer to two decimal places. B (34%) 0 24 30 44 Is it possible that most investors might regard Stock B as being less risky than Stock A? I. If Stock B is less highly correlated with the market than A, then it might have a lower beta than Stock A, and hence be less risky in a portfolio sense. II. If Stock B is less highly correlated with the market than A, then it might have a higher beta than Stock A, and hence be…
A stock's returns have the following distribution: Demand for the Company's Products Weak Probability of this Demand Occurring Rate of Return if this Demand Occurs 0.1 (30%) Below average 0.1 (15) Average 0.4 16 0.3 0.1 22 63 1.0 Above average Strong Assume the risk-free rate is 4%. Calculate the stock's expected return, standard deviation, coefficient of variation, and Sharpe ratio. Do not round intermediate calculations. Round your answers to two decimal places. Stock's expected return: Standard deviation: % % Coefficient of variation: Sharpe ratio:
A stock's returns have the following distribution: Sharpe ratio: 0.1 0.2 0.3 0.3 0.1 1.0 Assume the risk-free rate is 3%. Calculate the stock's expected return, standard deviation, coefficient of variation, and Sharpe ratio. Do not round intermediate calculations. Round your answers to two decimal places. Stock's expected return: Standard deviation: Coefficient of variation: % Demand for the Company's Products Weak Below average Average Above average Strong % Probability of this Demand Occurring Rate of Return if this Demand Occurs (40%) (14) 12 25 55
A stock's returns have the following distribution: Demand for the Company's Products Probability of this Demand Occurring Rate of Return if this Demand Occurs Weak 0.1 (48%) Below average 0.1 (15) Average 0.3 14 Above average 0.3 28 Strong 0.2 62 1.0 Assume the risk - free rate is 2%. Calculate the stock's expected return, standard deviation, coefficient of variation, and Sharpe ratio. Do not round intermediate calculations. Round your answers to two decimal places. Stock's expected return: % Standard deviation: % Coefficient of variation: Sharpe ratio:
A stock's returns have the following distribution: Demand for theCompany's Products Probability of thisDemand Occurring Rate of Return ifthis Demand Occurs Weak 0.1 (36%) Below average 0.1 (11) Average 0.4 17 Above average 0.3 27 Strong 0.1 56 1.0 Assume the risk-free rate is 3%. Calculate the stock's expected return, standard deviation, coefficient of variation, and Sharpe ratio. Do not round intermediate calculations. Round your answers to two decimal places. Stock's expected return: % Standard deviation: % Coefficient of variation: Sharpe ratio:
ANSWER EACH PART PLEASE!
None

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS