An asset has a 50% chance of a 16% rate of return and a 50% chance of a -16% rate of return (notice the second one is negative). What is the standard deviation of this asset's return? Express your answer in decimal format rounded to 4 decimal places.
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- The probability distributions of expected returns for the assets are shown in the following table: Asset A Prob Return 0.2 -5% 0.4 10% 0.4 15% a) Calculate the expected return for asset A. b) Calculate the standard deviation for asset A.Possible returns and their probabilities for an asset is given in the table below. The expected return is 30.25%. Calculate the standard deviation of the asset's return. Probability 0.40 0.45 0.15 13.92% O 17.84 % 18.55% O 19.09% 16.59% Return 0.52 0.17 0.12Suppose the returns on an asset are normally distributed. The historical average annual return for the asset was 6.4 percent and the standard deviation was 12.4 percent. A. What range of returns would you expect to see 95 percent of the time? (Enter your answers for the range from lowest to highest. A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) B. What range of returns would you expect to see 99 percent of the time? (Enter your answers for the range from lowest to highest. A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)
- Suppose the returns on an asset are normally distributed. The historical average annual return for the asset was 5.2 percent and the standard deviation was 10.6 percent. a. What is the probability that your return on this asset will be less than -9.7 percent in a given year? Use the NORMDIST function in Excel® to answer this question. Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. b. What range of returns would you expect to see 95 percent of the time? Note: Enter your answers for the range from lowest to highest. A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. c. What range of returns would you expect to see 99 percent of the time? Note: Enter your answers for the range from lowest to highest. A negative answer should be indicated by a minus sign. Do not round intermediate calculations and…Economics Compute (F/A,%13,20) using the closed-form formula and call that X Also approximate it; by applying linear interpolation between the values obtained from "compound interest factors" table for (F/A,%12,20) and (F/A,%15,20) and call that y. What is X- y? Choose the closest value to your answer. A 0 (B) 11.3664 c) -11.3664 D 1.2358 E) -1.2358An asset has normally-distributed returns, with mean of 10.6% and standard deviation of 14.8%. What is the 2% VaR (value at risk) return? Enter answer in percents.
- Suppose the returns on an asset are normally distributed. The historical average annual return for the asset was 5.7 percent and the standard deviation was 18.3 percent. a. What is the probability that your return on this asset will be less than –4.1 percent in a given year? Use the NORMDIST function in Excel® to answer this question. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What range of returns would you expect to see 95 percent of the time? (Enter your answers for the range from lowest to highest. A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) c. What range of returns would you expect to see 99 percent of the time? (Enter your answers for the range from lowest to highest. A negative answer should be indicated by a minus sign. Do not round intermediate calculations…es Suppose the returns on an asset are normally distributed. The historical average annual return for the asset was 5.7 percent and the standard deviation was 18.3 percent. a. What is the probability that your return on this asset will be less than -4.1 percent in a given year? Use the NORMDIST function in Excel® to answer this question. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What range of returns would you expect to see 95 percent of the time? (Enter your answers for the range from lowest to highest. A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) c. What range of returns would you expect to see 99 percent of the time? (Enter your answers for the range from lowest to highest. A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter…Assume that we have three assets. The first one has expected return μ1 = 10% and standard deviation of return equal to σ1 = 0.14. The second has expected return μ2 = 20% and standard deviation of return equal to σ2 = 0.2. The third asset has expected return μ3 = 15%. We would like to determine the range of the standard deviation of the third asset so that non of the asset dominates another. This range is an interval with a lower bound a and an upper bound b. What equals the lower bound a of the interval? Please insert your result with two decimals.
- Economics Compute (F/A, %13,20) using the closed-form formula and call that X, Also approximate it; by applying linear interpolation between the values obtained from "compound interest factors" table for (F/A,%12,20) and (F/A,%15,20) and call that Y. What is X-y? Choose the closest value to your answer. A 11.3664 C 1.2358 D -1.2358 11.3664Over a particular period, an asset had an average return of 6.0 percent and a standard deviation of 8.7 percent. What range of returns would you expect to see 68 percent of the time for this asset? (A negative answer should be indicated by a minus sign. Input your answers from lowest to highest to receive credit for your answers. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Expected range of returns X Answer is complete but not entirely correct. Expected range of returns 2.70 × % to What about 95 percent of the time? (A negative answer should be indicated by a minus sign. Input your answers from lowest to highest to receive credit for your answers. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) -3.30 × % 14.70 % X Answer is complete but not entirely correct. to 20.70 X %Over a particular period, an asset had an average return of 12.1 percent and a standard deviation of 20.5 percent. What range of returns would you expect to see 68 percent of the time for this asset? Note: A negative answer should be Indicated by a minus sign. Input your answers from lowest to highest to receive credit for your answers. Do not round Intermedlate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. Expected range of returns 96 to % What about 95 percent of the time? Note: A negative answer should be Indicated by a minus sign. Input your answers from lowest to highest to receive credit for your answers. Do not round Intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. Expected range of returns % to %