Following are three economic states, their likelihoods, and the potential returns: Economic State Fast growth Slow growth Recession Probability 0.32 0.34 0.34 Return 42% 19 -45 Determine the standard deviation of the expected return. Note: Do not round intermediate calculations and round your answer to 2 decimal places. Standard deviation %

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: Assume initial investment is $95,000 for all three projects and interest = 6.0%: Project A Year Cash…

A: The term "payback period" refers to the amount of time it takes to generate a profit equal to the…

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: 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: Based on the following information, what is the standard deviation of returns? Rate of Return if…

A: Deviation = Return -expected returnSquared deviation = Deviation ^2Standard deviation = Variance…

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: Over a particular period, an asset had an average return of 12.1 percent and a standard deviation of…

A: Expected return of an asset is the profitability of investing in that asset. It is the percentage of…

Q: The probability distribution of the returns of two assets, A and B, are shown in the table below.…

A: The combined variability of two variables is described by covariance. When there is a positive…

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: Use the following returns for X and Y. Returns Year X Y 1. 21.8% 26.4% 2. -16.8 -3.8 3. 9.8 28.4 4.…

A: Here, Note: Here, we are considering the given data as a sample data, hence applying the formula of…

Q: Bhupendra

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

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: 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: An asset has a 50% chance of a 16% rate of return and a 50% chance of a -16% rate of return (notice…

A: We invest in assets with the expectation to generate returns from that asset. For instance,…

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

A:

Q: absolute

A: Formula for mean absolute forecast error is: Predicted value - Realized value/Realized value…

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: 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: Use the following returns for X and Y. Year 1 2 3 4 5 21.18 -16.1 9.1 Returns 18.2 4.1 Y 24.38 -3.1…

A: It measures the difference between the data points relative to the mean. It is estimated by taking…

Q: What is the (exact) nominal return on an investment that earns a real return of 14.7% while…

A: Solution:- Nominal rate of return means the rate of return inclusive the effect of inflation.

Q: A company has a beta of 0.6, the T-bill rate is 4.3%, and the expected return on the market  is…

A: The required rate of return can be calculated with the help of CAPM equation.

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

A: Formulas:

Q: Use the following returns for X and Y. Year 1 234in 5 Returns X 21.18 -16.1 9.1 18.2 4.1 Y 24.38…

A: Standard deviation is a statistical measure of the amount of variability or dispersion in a set of…

Q: Suppose the returns on a particular asset are normally distributed. Also suppose the asset had an…

A: Given: Particulars Return   Expected return 11.50%   Standard deviation Particulars Return…

Q: Probability of State of Economy State of Economy Recession .20 Normal .50 Boom .30 Iculate the…

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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: ok Assume the returns from holding an asset are normally distributed. Also assume the average annual…

A: Using NORMDIST to Analyze Asset ReturnsWe can use the NORMDIST function in Excel to analyze the…

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

A: Given DataStates of the economy: Recession, Normal, BoomSecurity Returns:Recession: −8% Normal: 13%…

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: 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: Suppose the returns on an asset are normally distributed. The historical average annua return for…

A: Here,HistoricalAverage Annual Return is 5.7%Standard Deviation is 18.3%

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

A: The expected return is the estimation of profit or loss that an investor determine from his…

Q: Suppose the returns on a particular asset are normally distributed. The asset had an average return…

A: as we can see will lose money if we have less than 0% return so, x = 0