What is the expected standard deviation of stock A's returns based on the information presented in the table?Outcome Probability of outcome Stock A return in outcomeGoodMediumBad19%48%"2"40.00%10.00%-9.00%O 17.02% (plus or minus 4 bps)20.61% (plus or minus 4 bps)24.70% (plus or minus 4 bps)289.81% (plus or minus 4 bps)None of the above is within 4 bps of the correct answer

Option a: This option is correct. Step 1:We have to calculate the expected standard deviation of…

Answered: What is the expected standard deviation…

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter3: Risk And Return: Part Ii

Section: Chapter Questions

Problem 1P: The standard deviation of stock returns for Stock A is 40%. The standard deviation of the market...

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What is the standard deviation of Stock A returns given the information below about its returns across future states of nature? Enter return in decimal form, rounded to 4th digit, as in "0.1234"
A3) Finance What is the expected standard deviation of stock A's returns based on the information presented in the table? Outcome Probability of outcome Stock A return in outcome : Good 16% 65.00% Medium 51% 17.00% Bad "?" -35.00%
What is the standard deviation of Stock B returns given the information below about its returns across future states of nature? Enter return in decimal form, rounded to 4th digit, as in "0.1234"
Given the re-stated information below (and expected returns you should have already calculated), what is the correlation between Stock A and B returns? Enter correlation rounded to 4th digit, as in "0.1234"
Consider information given in the table below and answers the question asked thereafter: State Probability return on stock A Return on stock B A 0.15 10% 9% B 0.15 6% 15% C 0.10 20% 10% D 0.18 5% -8% E 0.12 -10% 20% F 0.30 8% 5% Calculate covariance and coefficient of correlation between the returns of thestocks A and B.v. Now suppose you have $100,000 to invest and you want to a hold a portfoliocomprising of $45,000 invested in stock A and remaining amount in stock B.Calculate risk and return of your portfolio.
Following is information for two stocks: Investment r σ Stock X 8% 10% Stock Y 24% 36% Which stock has the greater relative risk? (show the computation of the relative risk for X & Y.)
Based on the following information, calculate the expected return and standard deviation for Stock A and Stock B. Input area: State Probability Stock A Stock B Recession 0.15 0.04 (0.17) Normal 0.55 0.09 0.12 Boom 0.30 0.17 0.27 (Use cells A6 to D9 from the given information to complete this question.) Output area: Stock A Probability Return Product Return deviation Squared deviation Product Recession Normal Boom B э O Standard deviation Stock B 2 Recession 3 Normal 4 Boom 5 26 Standard Deviation 27 28 E(R) Variance Probability Return Product Return deviation Squared deviation Product E(R) Variance
Directions: Compute the total returns, the average of returns, and the standard deviation of the following stocks: 1) 2) EGRH Inc. MP, Ltd. STOCK RETURN AVERAGE OF YEA AVERAGE OF RETURNS (x) YEAR STOCK RETURN PRICE (x₁) PRICE RETU Jan-2021 Po Feb-2021 P8.6 Jan-2021 PO. Feb-2021 PO.090 Mar-2021 P0.097 Apr-2021 PO.189 May-2021 PO.164 Mar-2021 P9.14 Apr-2021 P13.30 May-2021 P13 Jun-2021 P60 Jul-2021 16.94 Jun-2021 P0.495 Jul-2021 PO.28 Aug-2021 PO Sep-2021 90 Aug-202 P13.70 Sep-2 P14.88 Oct-2021 0.375 Oct 21 P15.30 Nov-20 PO.325 N2021 P14.30 Dec-2 PO.330 ec-2021 P15.52 3) SD (8) GSM Inc. STOCK YEAR PRICE Jan-2021 P57.70 Feb-2021 P52.90 Mar-2021 P50.95 Apr-2021 P58.25 May-2021 P74.05 Jun-2021 P94.75 Jul-2021 P85.00 Aug-2021 P105.00 Sep-2021 P114.00 Oct-2021 | P101.00 Nov-2021 P100.40 Dec-2021 P113.80 SD (8) = RETURN (x₁) -x)² AVERAGE OF RETURNS (x-x)² (x) SD (8) = ACEE, Inc. YEAR STOCK RETURN PRICE (x₁) Jan-2021 P13.56 Feb-2021 P20.80 Mar-2021 P22.50 Apr-2021 P18.90 May-2021 P17.00…
Directions: Compute the total returns, the average of returns, and the standard deviation of the following stocks: 2) 1) EGRH Inc. DMP, Ltd. AVERAGE OF RETURNS (XI-X)² (x) YEAR AVERAGE OF RETS STOCK RETURN RICE YEA (x₁) Jan-2021 P8.30 Feb-2021 P8.60 Jan-2021 P0.088 Feb-2021 P0.090 Mar-2021 P0.097 Apr-2021 PO.189 May-2021 PO.164 Mar-2021 P9.14 Apr-2021 P13.30 May-2021 P13 Jun-2021 P0.495 Jun-2021 P 0 Jul-2021 PO.280 Jul-2021 6.94 Aug-2021 P0.455 Aug-202 P13.70 Sep-2021 P0.390 Sep-2 P14.88 Oct-2021 P0.375 0 21 P15.30 Nov-2021 PO.325 -2021 P14.30 Dec-2021 P0.330 Dec-2021 P15.52 SD (8) = 3) STOCK RETURN PRICE (x₁) GSM Inc. YEAR Jan-2021 P57.70 Feb-2021 P52.90 Mar-2021 P50.95 Apr-2021 P58.2 May-2021 P7 05 Jun-2021 34.75 Jul-2021 P85.00 Aug-20 P105.00 Sep-21 P114.00 O 2021 P101.00 N-2021 P100.40 Dec-2021 P113.80 SD (8) = STOCK RETURN CE (x₁) AVERAGE OF RETINS ²) (x₁-x)² SD (8) = ACEE, Inc. YEA Jan-2021 P156 Feb-2021 P20.80 Mar-2021 P22.50 Apr-2021 P18.90 May-2021 P17 Jun-2021 P76 Jul-2021…
please help with this question
Expected return of a stock with probability of occurrence of 0.4 in the first case with return of 16% and with probability of occurrence of 0.6 in the second case with a return of 12 % is a. 13.6% b. 11 % c. 12 % d. 9.3 %
What is Stock X's geometric returns if it has the following returns? Year 1 8% Year 2 - 5% Year 3 10% Year 4 - 6% Year 5 15% a. 4.1%. b. 5.2% c. 6.8% d. 8.5%

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