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

A: Variance = wheren = number of years involved.

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: 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: 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: 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: 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: 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: 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: 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.