Ripken Iron Works believes the following probability distribution exists for its stock. What is the coefficient of variation on the company's stock?State of the EconomyProbability of State OccurringStock's Expected ReturnBoom0.2525%Normal0.5015%Recession0.25
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Ripken Iron Works believes the following probability distribution exists for its stock. What is the coefficient of variation on the company's stock?
State of the Economy
Probability of State Occurring
Stock's Expected Return
Boom
0.25
25%
Normal
0.50
15%
Recession
0.25
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- What is the standard deviation of the returns on a stock given the following information? Could you please show the work? State of Economy Probability of state of Economy Rate of return if state occurs Boom 0.3000 0.1500 Normal 0.6500 0.1200 Recession 0.0500 0.0600 Average 0.3333 0.1100An analyst has estimated how a particular stock’s return will vary depending on what will happen to the economy. What is the coefficient of variation on the company's stock? OF THEECONOMY PROBABILITY OFSTATE OCCURRING STOCK'S EXPECTEDRATE IF THISSTATE OCCURS Recession Below Average Average Above Average Boom .10 .20 .40 .20 .10 (.60) (.10) .15 .40 .90What is the standard deviation of the returns on a stock given the following information? State of Economy Probability of State of Economy Rate of Return if State Occurs Boom .08 .171 Normal .70 .076 Recession .22 .017
- Sandy Corp believes the following probability distribution exists for its stock. What is the coefficent of variation on the company's stock ? Probability Stock's state of Of state Expected the economy Occuring Return Boom 0.45 25% Normal 0.50 15% Recession 0.05. 5%1. Considering the following information for stock K and stock M. Probability of state of economy State of economy Boom Normal Recession 0.3 0.5 0.2 Rate of return if state occurs K 25% 15% -12% M 18% 4% 0% 1) What is the expected return for stock K? For Stock M? 1) What is the standard deviation for Stock K" For stock M? iii) What is the coefficient of variation for Stock K? For stock M2 iv) If you invest 60% of your money in stock K and 40% in stock M, what is the expected return of the portfolio v) Find the return of your portfolio when a) economy is booming, b) economy is normal; and c) recession occurs vi) What is the standard deviation for your portfolio? (18 points in total)Shepherd's Flock stock is expected to produce the following returns given the various states of the economy. What is the expected return on this stock? State of economy Probability of State of Economy Rate of Return Recession .3 -.27 Normal .65 .16 Boom .05 .35
- You've estimated the following expected returns for a stock, depending on the strength of the economy: State (s) Probability Expected return Recession 0.1 -0.05 Normal 0.5 0.06 Expansion 0.4 0.11 What is the expected return for the stock? What is the standard deviation of returns for the stock?Quantitative Problem: You are given the following probability distribution for CHC Enterprises: State of Economy Probability Rate of return Strong 0.15 20 % Normal 0.55 9 % Weak 0.30 -5 % What is the stock's expected return? Do not round intermediate calculations. Round your answer to two decimal places.The following table is an analyst's best guess for the likelihood of various states of the economy next year and the corresponding return on the stock of EFG Corp. State of the Expected Return Economy Probability (%) Ideal 0.2 20.0 Good 0.4 15.0 Fair 0.3 8.0 Poor 0.1 -10.0 What is the expected percentage rate of return on EFG Corp. stock? Group of answer choices 3.4 10.4 10.8 11.4 not enough information
- Quantitative Problem: You are given the following probability distribution for CHC Enterprises: State of Economy Probability Rate of return Strong Normal % 0.15 0.50 0.35 Weak What is the stock's expected return? Do not round intermediate calculations. Round your answer to two decimal places. 22% 8% -5% % What is the stock's standard deviation? Do not round intermediate calculations. Round your answer to two decimal places. What is the stock's coefficient of variation? Do not round intermediate calculations, Round your answer to two decimal places.Suppose your expectations regarding the stock price are as follows: State of the Market Probability Ending Price HPR (includingdividends) Boom 0.30 $ 140 53.5 % Normal growth 0.28 110 17.5 Recession 0.42 80 −12.0 Use the equations E(r)=Σsp(s)r(s)E(r)=Σsp(s)r(s) and σ2=Σsp(s) [r(s)−E(r)]2σ2=Σsp(s) [r(s)−E(r)]2 to compute the mean and standard deviation of the HPR on stocks. (Do not round intermediate calculations. Round your answers to 2 decimal places.)Quantitative Problem: You are given the following probability distribution for CHC Enterprises: State of Economy Probability Rate of return Strong 0.15 18% Normal 0.5 10 Weak 0.35 -5 What is the stock's expected return? Round your answer to 2 decimal places. Do not round intermediate calculations.% What is the stock's standard deviation? Round your answer to two decimal places. Do not round intermediate calculations.% What is the stock's coefficient of variation? Round your answer to two decimal places. Do not round intermediate calculations.