C.) Given the possible returns (dividend plus capital gains) over the coming year froma $10,000 investment in Ford Motor Company common stock:State of EconomyRecessionNormal YearProbabilityReturns-$1,0001,5002,5000.200.60Boom0.20Determine the -16-20) Expected return21-25) Standard deviation of returns26-30) Coefficient of variation

16-20) probability RETURN RETURN % (RETURN/10,000) Return% x PROBABILITY RECESSION 0.2…

C.) Given the possible returns (dividend plus capital gains) over the coming year from a $10,000 investment in Ford Motor Company common stock: State of Economy Probability Returns Recession -$1,000 1,500 2,500 0.20 Normal Year 0.60 Boom 0.20 Determine the - 16-20) Expected return 21-25) Standard deviation of returns 26-30) Coefficient of variation

C.) Given the possible returns (dividend plus capital gains) over the coming year from a $10,000 investment in Ford Motor Company common stock: State of Economy Probability Returns Recession -$1,000 1,500 2,500 0.20 Normal Year 0.60 Boom 0.20 Determine the - 16-20) Expected return 21-25) Standard deviation of returns 26-30) Coefficient of variation

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

Consider the following table for different assets for 1926 through 2020. Standard Deviation 19.7% Series Large-company stocks Small-company stocks Long-term corporate bonds Long-term government bonds Intermediate-term government bonds U.S. Treasury bills Inflation Average return 12.2% 16.2 6.5 6.1 5.3 3.3 2.9 Expected range of returns Expected range of returns a. What range of returns would you expect to see 68 percent of the time for large-company stocks? Note: A negative answer should be indicated by a minus sign. Enter your answers from lowest to highest. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. b. What about 95 percent of the time? 31.3 8.5 9.8 Note: A negative answer should be indicated by a minus sign. Enter your answers from lowest to highest. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16. % to % to 5.6 3.1 4.0 % %
Given the following information, what is the standard deviation (in percent) of the returns on this stock? Carry intermediate calculations to at least five decimals. Answer to two decimals Probability of State State of Economy Rate of Return (%) of Economy Recession 15% -12.34 Normal 60% 14.14 Boom 25% 23.77
Calculate the correlation coefficient (PAB) for the following situation: (Round intermediate calculations and the final answer to 4 decimal place, e.g. 0.2921.) State of the Probability of Expected return on Expected return on economy occurrence stock A in this state stock B in this state High growth 30% 39.5% 56.5% Moderate 25% 18.5% 26.5% Recession 45% -6.5% -16.5% Correlation coefficient
please can you answer with explain with equations for each column? State Probability, p(s) End-of-Year Price Annual Dividend HPR P(HPR) HPR Diviation from E(R_) Diviation^2 PxDiviation^2 Super high growth 9.50% $62 $3 4.84% 0.0000% 0.0000% High growth 18.80% $60 $3 5.00% 0.0000% 0.0000% Normal growth 40.10% $56 $2 3.57% 0.0000% 0.0000% Low growth 20.70% $51 $2 3.92% 0.0000% 0.0000% No growth 10.90% $46 $0 0.00% 0.0000% 0.0000% E(R_)= 0.00% Var(R_)= 0.0000% StD(R_)= 0.0000%
case study: should stockholders wealth maximization be thought of as long term or a short term goal? for example, if one action increases a firm's stock price from a current level of 40 to 45 in 6 months and then to 50 in 5 years but another action keeps the stock at 40 for several years but then increases it to 70 in 5 year, which action would be better?
Manshuk
The last four years of returns for a stock are as follows: Year Return 1 - 4.3% 2 28.1% 3 11.6% a. What is the average annual return? b. What is the variance of the stock's returns? c. What is the standard deviation of the stock's returns? a. What is the average annual return? The average return is%. (Round to two decimal places.) 4 3.7%
can you help me with question b please
The figure in the popup window, a. The expected return. b. The standard deviation of the return. Note: Make sure to round all intermediate calculations to at least five decimal places. Graph/chart Probability (%) 35- 30- 25- 20 15- 10- 5 9 -25% shows the one-year return distribution for RCS stock. Calculate -10% 0% Return 10% 25% - Q Q 2 X
Calculate the questions given by using formula (NOT excel)
How is this set-up to solve? Ford Stock I) & II) were in previous question GM stock produced the following monthly returns (January - May): 5%, 8%, -2%, 12%, and 15%. Ford stock produced the following monthly returns (January - May): 1%, 10%, 6%, 3%, and 2%. I) Calculate the average return for each stock. II) Calculate the standard deviation of monthly return for each stock. III) Calculate the correlation coefficient between GM and Ford stocks.
The table given below reports last five years data on annual rates of return (HPYS) on two stocks Year Stock A (%) Stock B (%) 1 16 -10 24 40 30 10 5 -20 20 1. Compute the arithmetic mean of the annual rates of return for both stocks. Which stock is preferable using this measure

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