Expected return Standard deviation 10.56%

Q: A security has an average return of 10% and a standard deviation of 03. If the security is normally…

A: A 95% confidence interval is a statistical range that is used to estimate the range within which a…

Q: Find expected return for G.

A: Expected Return is the amount of loss or profit an investor expects to receive on an investment.

Q: Year 2017 2018 2019 2020 2021 2022 Price Dividend 83.64 68.19 69.69 41.88 61.19 110.3 3.23 3.43 3.48…

A: YearsPriceDividend201783.64201868.193.23201969.693.43202041.883.48202161.193.492022110.33.55Required…

Q: Market condition Probability Return on A Good .10 8% Average day .80 10% Bad .10 -45% What is the…

A: To Find: Standard Deviation of A

Q: Coefficient of Variation

A: Please note that I'm assuming that we need to calculate the Coefficient of variation of the 2…

Q: 0 0 0 о

A: Hi student Since there are multiple questions, we will answer only first question.  Every business…

Q: Use the means and standard deviations of return for MSFT and TSLA in percent per month that are…

A: Opportunity set is the set of all possible portfolios that an investor may construct from a given…

Q: Consider the following variance-covariance matrix for Security A, Security B, and the Market:…

A: The level of yield that an investor judges to receive from an investment given the level of risk,…

Q: What range of returns should you expect to see with a 99.7 percent probability on an asset that has…

A: Investors and analysts assess the performance of specific assets, portfolios, or whole markets using…

Q: calculate tracking error if the return from the portfolio is 15.5% and the return from the bench…

A: Tracking error is computed by following formula-Tracking error = Rp - RiWhere,Rp = return from…

Q: Average returns Variances Standard deviations > Answer is complete but not entirely correct. X Y…

A: Variance = wheren = number of years involved.

Q: The Simple Exponential Sr is: (round to 2 decimal plae Naive x(Period) Y(Sales) Forecast Error 14

A: Answer  Let forecast for period 1=13 Forecast for period 2=13+0.25*(13-13)=13 Forecast for period 3=…

Q: An asset has an average return of 11.15 percent and a standard deviation of 23.91 percent. What is…

A: We make investments in a financial security with the hope of earning a return from the investment.…

Q: Five Possible Outcomes for Portfolio Return OUTCOMES PROBABILITY POSSIBLE RETURN 1 10% 20% 2…

A: Mean/Return = Σ (Probability * Possible Return) Variance = Σ (Probability * (Return - Mean)^2)…

Q: Given the following historical returns, what is the variance? Year Return 1 7 percent 3 percent 3.…

A: Return in year 1 (R1) = 7% R2 = 3% R3 = 19% R4 = -11% R5 = -1% Let R = Average return

Q: Which of the following assets dominates Asset X that has 9% expected return andstandard deviation of…

A: The objective of the question is to identify which asset among Asset V, Asset R, Risk-free asset,…

Q: at is the variance of returns for Security ABC? probability distribution fro security ABC:…

A: Mean return would be expected probabilistic rate of return in both outcomes and variance would be…

Q: Please find out expected return and variance of following investment opportunity. Probability Rate…

A: The Return anticipated or estimated to be generated from the project is known as expected return.…

Q: Over the past 3 years an investment returned 0.19, -0.11, and 0.07. What is the variance of returns?

A: Variance: Variance is the measure of dispersion of returns of an investment.

Q: An asset has an average return of 11.15 percent and a standard deviation of 22.89 percent. What is…

A: Maximum rate of return depends on the probability of event and standard deviation and mean expected…

Q: If the 1% percentile of an annual return distribution is - 2%, the risk free rate is 2% and the mean…

A: Variance is a statistical measure that gauges the dispersion of values within a dataset, providing…

Q: Expected Return, Variance, Std. Deviation and Cofficient of Variation: Magee Inc.'s manager believes…

A: The standard deviation of the stock is the measure of the deviation of the stock's return from the…

Q: What is the variance of returns for Security ABC

A: In finance we use variance of returns as a measure of risk that is inherent in a stock or a…

Q: Security A B C Beta 0.8 1.0 1.2 Expected Return 10% 12% 14% Residual standard deviation 25% 10% 20%…

A: According to Single Index model , Variance of stock is calculated as follows:-Variance of stock =…

Q: What is the variance of returns

A: Return means additional benefit received over the invested amount for the period. Every investment…

Q: Over the past 3 years an investment returned 0.19, -0.08, and 0.07. What is the variance of returns?

A: In the given case, the investment returns of the past 3 years are given. So, number of years is…

Q: An asset has an average return of 10.79 percent and a standard deviation of 22.71 percent. What is…

A: Maximum rate of return depends on the probability of event and standard deviation and mean expected…

Q: Expected Return, Variance, Std. Deviation and Cofficient of Variation: Magee Inc.'s manager…

A: Formulas:

Q: 4 t of An investment earned the following returns for the years 2013 through 2016:20 %, -5%, 30%,…

A:

Q: The expected annual returns are 15% for investment 1 and 12% for investment 2. The standard…

A: Here, Expected Annual Return of Investment 1 is 15% Expected Annual Return of Investment 2 is 12%…

Q: 3. Security A has the following probability distribution of returns: Scenario Probability Return 0.1…

A: Calculation: Formula snip:

Q: coefficient variation=.55 positive coeficient of correlation =.20 expected value=$1200 What does…

A: The measure that is used to calculate the dispersion of dataset is called the standard deviation. It…

Q: Given the following probability distribution, compute for Outcome Probability Expected Return 20%…

A: As information expected return is as follows:   Probability Return Expected return A B C=A*B…

Q: Assuming that the rates of return associated with a given asset investment are normally distributed;…

A: a) Calculation of standard deviation:Standard deviation is 0.3516.Standard deviation can be derived…

Q: EXERCISE 2 From the data below, find the following: [al expected return [b] Standard deviation [c]…

A: In the case of multiple sub-parts, as per the guidelines, only three subparts are allowed to be…

Q: ndard deviation of the following annual returns:

A: Standard deviation of a portfolio is the measures that indicates the deviation of return from the…

Q: An investment has an expected return of 10% with standard deviation of 25%. What is the value at…

A: Given: Expected return = 10% Standard deviation = 25%

Risk and return

Before understanding the concept of Risk and Return in Financial Management, understanding the two-concept Risk and return individually is necessary. 

Capital Asset Pricing Model

Capital asset pricing model, also known as CAPM, shows the relationship between the expected return of the investment and the market at risk. This concept is basically used particularly in the case of stocks or shares. It is also used across finance for pricing assets that have higher risk identity and for evaluating the expected returns for the assets given the risk of those assets and also the cost of capital.