Please answer all questions with explanations thx Expected return and standard deviation. Use the following information to answer the questions:a What is the expected returm of each asset?b. What is the variance of each asset?c. What is the standard deviation of each asset?Hint: Make sure to round all intermediate calculations to at least seven (7) decimal places. The input instructions, phrases in parenthesis after each answer box, onlyapply for the answers you will type.Incorrect: 0a. What is the expected return of asset A?1 Data Table(Round to four decimal places.)(Click on the following icon o in order to copy its contents into a spreadsheet.)Return onReturn onReturn onProbabilityAsset C inAsset A inStateState ofAsset B inEconomyof StateStateStateВоom0.350.040.220.32Enter your answer in the answer box andNormal0.510.040.070.19Recession0 140.04- 0.04-0.228 partsremainingSUS&2#8.6.terg.amCValtctrialt

Expected Return = Probability * Return Variance = sum of (Probability *(Return-Mean)^2) Standard…

a What is the expected return of each asset? b. What is the variance of each asset? c. What is the standard deviation of each asset? Hint: Make sure to round all intermediate calculations to at least seven (7) decimal places. The input instructions, phrases in parenthesis after each answer box, only apply for the answers you will type. a What is the expected return of asset A? Data Table (Round to four decimal places.) (Click on the following iconp in order to copy its contents into a spreadsheet) Return on Asset C in Return on Return on State of Probability Asset A in Asset B in Economy of State State State State 0.22 0.32 0.04 0.04 Boom 0.35 Enter your answer in the answer box and 0.07 0.19 0 51 0 14 Normal Recession 004 -0.04 -0.22 8 parts

a What is the expected return of each asset? b. What is the variance of each asset? c. What is the standard deviation of each asset? Hint: Make sure to round all intermediate calculations to at least seven (7) decimal places. The input instructions, phrases in parenthesis after each answer box, only apply for the answers you will type. a What is the expected return of asset A? Data Table (Round to four decimal places.) (Click on the following iconp in order to copy its contents into a spreadsheet) Return on Asset C in Return on Return on State of Probability Asset A in Asset B in Economy of State State State State 0.22 0.32 0.04 0.04 Boom 0.35 Enter your answer in the answer box and 0.07 0.19 0 51 0 14 Normal Recession 004 -0.04 -0.22 8 parts

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

Chapter8: Time Series Analysis And_forecasting

Section: Chapter Questions

Problem 17P: Consider the following time series: a. Construct a time series plot. What type of pattern exists in...

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Expected return and standard deviation. Use the following information to answer the questions: a. What is the expected return of each asset? b. What is the variance of each asset? c. What is the standard deviation of each asset? Hint: Make sure to round all intermediate calculations to at least seven (7) decimal places. The input instructions, phra answers you will type. Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Return on Asset A in State of Economy Boom Normal Recession Probability of State 0.35 0.51 0.14 Print State 0.05 0.05 0.05 Done Return on Asset B in State 0.23 0.08 -0.05 Return on Asset C in State 0.33 0.17 -0.22
Consider the following data for a dependent variable y and two independent variables, x1 and 12. 30 12 94 47 10 109 25 18 112 51 16 178 40 94 51 19 175 75 171 36 12 118 59 13 143 77 17 212 Round your all answers to two decimal places. Enter negative values as negative numbers, if necessary. a. Develop an estimated regression equation relating Y to ¤1. Predict y if æ1 = 35. b. Develop an estimated regression equation relating y to x2. ŷ = + Predict y if x2 = 25. ŷ = c. Develop an estimated regression equation relating y to ¤1 and 2. Predict y if x1 = 35 and x2 = 25. ŷ =
Assume that every asset has the same expected return and variance. Furthermore, all assets have the same covariance with each other. As the number of assets in a portifolio grows, which becomes more important: variance or covariance? Clarify your answer using words, diagrams, formulae or a practical example.
The regression analysis is normally depicted as "y = Ax+ B." What does "A" indicate in the equation? A) It is the expected change in the independent variable for a one-unit change in the dependent variable OB) It is the significance level for the test OC) It is the expected change in the dependent variable for a one-unit change in the independent variable OD) The confidence interval
Consider the following time series: a. Construct a time series plot. What type of pattern exists in the data? b. Use simple linear regression analysis to find the parameters for the line that minimizes MSE for this time series. c. What is the forecast for t = 6?
Consider the following set of dependent and independent variables. Complete parts a through c below. y 9 11 D 15 15 21 24 28 32 X1 2 6 6 8 6 11 15 20 X2 16 10 14 11 3 8 7 4 a. Using technology, construct a regression model using both independent variables. y= (15.3952) + (1.0092) x₁ + (-0.5869)x2 (Round to four decimal places as needed.) b. Test the significance of each independent variable using α = 0.05. Test the significance of x₁. Identify the null and alternative hypotheses. Ho B₁ = H₁ B₁ 0 0 (Type integers or decimals.) Calculate the appropriate test statistic. The test statistic is 4.20 (Round to two decimal places as needed.) Determine the appropriate critical value(s) for α = 0.05. The critical value(s) is (are) ☐ (Round to two decimal places as needed. Use a comma to separate answers as needed.)
b. Convert the Data available into a Table and choose a Design of your choice.c. Obtain the Mean, Median, Standard Deviation, Variance, Quartiles (Q1, Q2, Q3, Q4), IQRfor the entire data (1895-1998), using ONLY Excel Functions (not using the Analysis ToolPak Add-In)d. Use the Statistical measurements generated from the Analysis Toolpak (Add-In) andcompare the values obtained in (c). Comment on your findings.
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You are given the following data about Asset A and Asset B. Asset A Asset B Expected returns 8.6% 7.9% Standard Deviation 3.8% 4.6% Assuming that an investor is to choose between Asset A or Asset B, explain which asset a rational investor will choose. c) With the use of a diagram, explain why an investor will always choose a point on the SML line.
What is the standard deviation of a random variable q with the following probability distribution? (Do not round intermediate calculations. Enter your answer in numbers not in percentage. Round your answer to 4 decimal places.) Value of q 0 1 2 Probability 0.30 0.22 0.48 Standard deviation
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