Based on the following information, what is the standard deviation of returns? Rate of Return if State of Economy Probability of State of Economy Recession.23 Normal 26 Boom 51 State Occurs -.111 126 236

Q: Consider the following information:            State of Economy Probability of State of Economy Rate…

A: The expected return is the anticipated amount of profit or loss from an investment. The expected…

Q: You have the following stock with expected returns given the different economic outcomes. What is…

A: The return that we expect from a stock is not guaranteed. The expected returns figure will vary…

Q: Following are three economic states, their likelihoods, and the potential returns:   Economic State…

A: A standard deviation (or  σ ) is a measure of how spread out the data is with respect to the mean.

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 to answer the two questions below. State of Prob. of the the economy…

A:

Q: Consider the following information: State of Economy Recession Boom Probability of State of Economy…

A: State of economyProbabilityRate of return if state occursRecession0.39-0.13Bust0.610.25

Q: State of Economy Bust Boom Security Returns if Probability of State, State Occurs of Economy Roll…

A: It is difficult to arrive at a single accurate figure of the rate of return as it is affected by…

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: State of Economy Recession Boom Probability of State of Economy…

A: The expected return refers to the weighted average profits that the investment provides after…

Q: Multiple Choice O O O -24.34% -12.61% -59.53% -36.07%

A: Mean return=10.85%Standard deviation=23.46%Find out maximum loss for 2.5% probability.

Q: State of Economy Bust Boom Probability of State of Economy Roll Ross .40 .60 -10% 21% 28 8 Calculate…

A: Expected return is the return expected with consideration of various factor that include the…

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: A standard "money demand function used by macroeconomists has the form In(m)o +In(GDP) +R Where m is…

A:

Q: Bhupendra

A: Here's how you can calculate the expected return and the standard deviation of returns:Expected…

Q: ased on the following information, what is the variance? State of Economy Recession Normal Boom…

A: Probability recession = p1 = 0.30Probability normal = p2 = 0.39Probability boom = p3 = 0.31 Return…

Q: Consider the following information: State of Economy Boom Good Poor Bust Probability of State- of…

A: The weightage of each scenario's chance of occurrence together with the profit that could be…

Q: Consider the following information: State of Economy Recession Normal Boom Probability of State of…

A: Expected return refers to the rate of return that is earned by the investors over the investment…

Q: State of Economy Bust Boom State of Economy Probability of State of Economy 0.50 0.50 Bust Boom…

A: Expected return in finance is a fundamental concept representing the anticipated gains or losses on…

Q: Assume you are given the following information regarding the expected returns for an asset, for…

A: Formulas used: Expected return = Sum of (Probability of state* Return in that state) Standard…

Q: Security Returns if State Occurs State of Economy Probability of State of Economy Roll Ross Bust .60…

A: There are two states of economy possible. Two different stocks have two different possible returns…

Q: 2. Given the following historical returns, calculate the average return and the standard deviation:…

A: standard deviation = square root of (sum of (Return-average)^2)

Q: Based on the following information, what is the standard deviation of returns? State of Economy…

A: The standard deviation shows the average volatility in the returns of the stock.It shows to what…

Q: You are given the following information: ETT State of Economy State of Economy If State Occurs…

A:

Q: Consider the following information: State of Economy Recession Boom Probability of State of Economy…

A: Expected return = Sum of ( Rate of return x Probability of the return)=>Expected return =(Rate of…

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: Which one of the following best describes an arithmetic average return?

A: Arithmetic average return is the mean of all returns and hence is computed by adding all the returns…

Q: There is 6 percent probability of recession, 21 percent probability of a poor economy, 47 percent…

A: Data for expected return calculation Probability Return 6% -20.80% 21% 4.40% 47% 12.20%…

Q: Consider the following information: State of Economy Recession Normal Boom Probability of State of…

A: Expected return is determined by weighing the potential outcomes of an investment against their…

Q: Consider the following information: State of Economy Boom Good Poor Bust Probability of State- of…

A: The standard deviation is the square root of variance. Calculating the expected return of a…

Q: Given the following information, what is the expected return and standard deviation for this stock?…

A: In the given case, the probability and the rate of return of each state of economy . Expected return…

Q: Expected return and standard deviation. Use the following information to answer the questions.…

A: Given:

Q: Use the following information on states of the economy and stock returns to calculate the expected…

A: State of economyProbability of state of economySecurity Return if state…

Q: Using this information, the forecast for the percentage change in the ringgit 0555.5%

A: We are given the following regression equation. In the formula above, a0 = intercept = 0.004a1 =…

Q: Consider the following information: Rate of Return if State Occurs State of Economy Probability of…

A:

Q: An investor is considering the purchase of Gryphon stock, which has returns given in the table…

A: The expected return of the stock refers to the weighted average of the observed returns to find the…

Q: Stock W has the following returns for various states of the economy: State of the Economy…

A: Expected Return and Standard deviation of the Stock is determined using the below formula: Expected…

Q: Consider the following information: State of Economy Boom Good Poor Bust Probability of State- of…

A: Standard deviation refers to teh square root of variance that shows the average amount of the mean…

Q: Following are three economic states, their likelihoods, and the potential returns: Return 32%…

A: Standard deviation measures the risk involved in earning a return from the stock. lower the risk…

Q: Return on Return on Asset K in Return on State of Probability Asset J in Asset L in Economy of State…

A: Expected return = sum of (probability * return)