Security Returns if State Occurs State of Economy Bust Boom Probability of State of Economy Roll 0.40 0.60 -10% 28 Ross 21% 8 Calculate the standard deviations for Roll and Ross by filling in the following table Note: A negative value should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 4 decimal places. State of Economy Probability of State of Economy Return Deviation from Expected Return Squared Return Deviation Product Roll Bust 0.40 -0.2300 Boom 0.60 Ross Bust 0.40 Boom 0.60 -0.0520 0.0027 g²= D Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Roll Ross Standard Deviations 18.62 % 6.37%
Security Returns if State Occurs State of Economy Bust Boom Probability of State of Economy Roll 0.40 0.60 -10% 28 Ross 21% 8 Calculate the standard deviations for Roll and Ross by filling in the following table Note: A negative value should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 4 decimal places. State of Economy Probability of State of Economy Return Deviation from Expected Return Squared Return Deviation Product Roll Bust 0.40 -0.2300 Boom 0.60 Ross Bust 0.40 Boom 0.60 -0.0520 0.0027 g²= D Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places. Roll Ross Standard Deviations 18.62 % 6.37%
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:State of Probability of State of
Economy
Bust
Boom
Economy
0.40
0.60
Security Returns if State Occurs
Roll
-10%
28
Ross
21%
8
Calculate the standard deviations for Roll and Ross by filling in the following table
Note: A negative value should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 4
decimal places.
State of
Economy
Probability of
State of
Economy
Return
Deviation from
Expected
Return
Squared
Return
Deviation
Product
Roll
Bust
0.40
-0.2300
Boom
0.60
Ross
Bust
0.40
Boom
0.60
-0.0520
0.0027
Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.
Roll
Ross
Standard
Deviations
18.62 %
6.37 %
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