Compute the standard deviation of the expected return given these three economic states, their likelihoods, and the potential returns:Probability0.1Economic StateFast GrowthSlow GrowthRecession0.60.3Multiple Choice6.8 percent16.5 percent21.5 percent46.4 percentReturn50%8%-10%

For expected return, the probability will be factored in.Economic StateProbabilityReturnProbability*…

Compute the standard deviation of the expected return given these three economic states, their likelihoods, and the potential returns: Economic State Fast Growth Slow Growth Recession Multiple Choice 6.8 percent 16.5 percent 21.5 percent 46.4 percent Probability 0.1 0.6 0.3 Return 50% 8% -10% D

Compute the standard deviation of the expected return given these three economic states, their likelihoods, and the potential returns: Economic State Fast Growth Slow Growth Recession Multiple Choice 6.8 percent 16.5 percent 21.5 percent 46.4 percent Probability 0.1 0.6 0.3 Return 50% 8% -10% D

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

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Question

Compute the standard deviation of the expected return given these three economic states, their likelihoods, and the potential returns:
Probability
0.1
Economic State
Fast Growth
Slow Growth
Recession
0.6
0.3
Multiple Choice
6.8 percent
16.5 percent
21.5 percent
46.4 percent
Return
50%
8%
-10%

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Vijay
Security Returns if State Occurs State of Economy Bust Boom Probability of State of Economy Roll Ross .60 40 -15% 19% 26 6 Calculate the expected return on a portfolio of 70 percent Roll and 30 percent Ross by filling in the following table: (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) State of Economy Probability of State of Economy Portfolio Return if Product State Occurs Bust .60 % Boom 40 % E(Rp) % % 5.12%
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Compute the expected return given these three economic states, their likelihoods, and the potential returns: Economic State Probability Return Fast Growth 0.2 23% Slow Growth 0.6 14% Recession 0.2 −30% Multiple Choice 12.5 percent 7.5 percent 3.5 percent 7.0 percent
Ef 43.
Computer the expected return given these three economic states, their likelihoods, and the potential returns. Economic State Probability Return Fast Growth 0.40 25% Slow Growth 0.55 12% Recession 0.05 -50% Multiple Choice ___ -4.3 percent ___ 14.1 percent ___ 19.1 percent ___ 29.0 percent
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Nikul
Consider the following returns and states of the economy for TZ.Com.: Economy ProbabilityReturn Weak 15% Normal 50% Strong 35% -9% 2% 6% What is the standard deviation of TZ's returns? SET YOUR CALCULATOR TO FOUR DECIMAL PLACES AND ROUND TO 2 DECIMAL PLACES AT THE END. DO NOT ENTER THE %. FOR EXAMPLE, IF YOUR ANSWER IS 7.7011% ENTER IT AS 7.70.

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