John Lewis of Hungerford plc may have returns next year as follows:  Return        probability  10%              30%  20%              20%  -10%             30%  -20%             20%  What is the standard deviation of returns for John Lewis?   A. 24.65%   B. 15.86%   C. 14.83%   D. 22.25%

Q: Consider $10m invested in a stock. The annual volatility of the rate of return is 25%. Assuming that…

A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…

Q: Q2: By using CAPM calculate the required return on equity if Risk free rate is 18%, Expected Market…

A: Given Information: Risk-free Rate=18% Beta=1.5 Expected Market Return=20%

Q: The 5-year average P/E ratio for a firm is 20.00. This year 's earning per share is $5.00 and it is…

A: Financial management consists of directing, planning, organizing and controlling of financial…

Q: Suppose You have decided to invest 40% of your wealth in Company A which has an expected return of…

A: The expected return is the minimum required rate of return which an investor required from the…

Q: Find the expected return. State of the Economy Probability of State Occurring Stock's Expected…

A: The table is: State of the economy Probability of state occurring Stock's expected return Boom…

Q: Current forecasts are for XYZ Company to pay dividends of OMR 2.000, OMR 2.350, OMR 2.600and OMR…

A: Dividends over the next 4 years: Year Dividend 1 2 2 2.35 3 2.6 4 2.85 Stock price at…

Q: There is a 25% chance the stock market will return 10% next year. There is a 35% chance the stock…

A: The expected return is a crucial financial metric representing the average anticipated gain or loss…

Q: •What is the covariance of returns between stocks A and B?   year    Year              Return A…

A: Covariance is the proportion by which two sets of investment returns oscillate in relation to each…

Q: The following table,, shows the one-year return distribution of Startup, Inc. Calculate: a. The…

A: The expected return of the stock refers to the average benefits that the stock provides to the…

Q: Consider the following information for the next year's return on IBM. probability return 10% 20% 0.8…

A: The profit or loss that an investor predicts on an investment with known historical rates of return…

Q: target rate of return is 7%. What is the probability that you will not meet your objective, assuming…

A: Step 1 Normal Distribution The most typical distribution function for independent, randomly produced…

Q: Ten annual returns are listed in the following table: (Click on the following icon in order to copy…

A: We invest in different types of financial securities like equities, bonds etc. We make the…

Q: The monthly rates of return for two corporations are given below: Month ABC Ltd. XYZ Ltd. January…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

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: What will price be in 1 year? c. What do you expect to happen to price in the following year?…

A: Eps = 11 ROE = 15%

Q: quiz 8-18

A: Approach to solving the question: 1. Calculate the average returns and standard deviations for…

Q: Stock Price (S) = 50   Exercise Price (E) = 45   Risk-free rate (r) = 0.06   Variance (sd) =…

A: Here, Spot Price (S0) $           50.00Exercise Price (K) $           45.00Risk Free Rate ( r…

Q: he expected dividend of Sony Company for next year has the following probability distributions: 30%…

A: Market price per share  = expected dividend / required arte   Expected dividend  =  2* 30% + 2.890…

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: Use the following information to answer the question. Probability Outcome Return Recession 20% -20%…

A: Expected return is sum of Probability * return in all outcomes.

Q: Ten annual returns are listed in the following table: (Click on the following icon in order to copy…

A: Arithmetic average is simple average and can be obtained by adding and dividing by the total number.

Q: quiz 8-6

A:

Q: Problem Set #3 Use the following information to answer the next three questions: The Last four years…

A: Step 1:Last four years, average annual returns,9.5%,19.4%,−6.2%,18.9%Sum of All above…

Q: Risk and return( The stock of Hawkeye Corporation (HC) currently trades for $100. One year from now…

A: Return = (Expected price - Current price) / Current priceReturn when the stock price is $75  = (75 -…

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: uppose that the simple annual returns on an investment over a 3-year period are: 8%, 2%, and 12%.…

A: Put option gives the opportunity to sell stock on the expiration but there is no obligation to do…

Q: Consider the following returns and states of the economy for Neptune Corporation: Economy…

A: Given: Economy Probability(P) Return Weak 40% 2% Normal 50% 13% Strong 10% 32%

Q: Goodwin has been very successful, but it hasn't paid a dividend yet. It circulates a report to its…

A: Dividend decisions refer to the choices made by a company's management and board of directors…

Q: 53 Tucker Corporation's manager believes that the economic environment during the next year can…

A: Probability Return 0.5 15% 0.2 0% 0.3 -5%

Q: 1 2 3 4 -19.9% 16.7% 19% -50% 5 6 7 43.2% 1.3% -16.4% ) What is the average annual return over the…

A: Average rate of return is the simple average rate of return and computed as sum of all divided by…

Q: YEAR 2018 2019 2020 2021 2022 R(BOA) 28% 24% -6% 23% 20% R(WF) 26% 25% -9% 21% 26% Calculate the…

A: ER= Return*ProbabilityVariance = probability* deviation^2standard deviation= square root of variance

Q: If the volatility of Tesla is 2.74% per day, it will correspond to _____ per month.

A: Answer: B. 12.56%

Q: Year Return The last four years of returns for a stock are as follows: 1 - 3.6% 2 27.6% 3 4 11.9%…

A: Given: The last four years of return for a stock:Year1234 Return-3.60%27.60%11.90%4.10%  a.…

Q: Use the following information to calculate your company's expected return. State…

A: Expected return refers to the investor’s predicted amount of profit and loss on an investment.…

Q: Suppose you invest Rs 600 in IBM and Rs 400 in Merc for a month. If the realized return is 2.5% on…

A: Overall return (%) on portfolio can be calculated as: = Sum of return on both the stocks / Initial…

Q: 14. SNOFI Inc.'s manager believes that economic conditions during the next year will be strong,…

A: Expected return refers to the anticipated amount of profit or loss that an investor calculates from…

Q: Month    Zemin Corp.    Market 1    5%    3% 2    2%    1% 3    -1%    1% 4    -2%    -1% 5    4%…

A: CAPM: Capital asset pricing model The Capital Asset Pricing Model (CAPM) is a mathematical model…

Q: Suppose the sample for a return on a portfolio is comprised of 82 annual returns. The bottom five…

A: VaR: Value at Risk is a measure that estimates the maximum potential loss, within a specified…

Q: Suppose You have decided to invest 40% of your wealth in Company A which has an expected return of…

A: given, ra=15%rb=9%rp=13% let investment = wa wb=wa-1

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: unit 8-5

A: Step 1: To compute the average returns and standard deviations:For Zemin Corporation: Average return…

Q: Average Return and Standard Deviation

A: Average Return: Average return is the average of different rates at different period of times.…

Q: Based on the provided data what is the standard deviation of the VOO ETF total returns for the…

A: Standard deviation is the measure of risk and volatility and is measured as deviation from mean…

Q: Ten annual returns are listed in the following table. 1 -19.9% 2 % 3 4 16.7% 19% -50% % to 5 6 (a)…

A: Average rate of return is the simple average rate of return and computed as sum of all divided by…