What is the standard deviation given the following information? Probability Possible Returns 24.0% 36.0% 9.0% 25.0% 20.0% 55.0% none of the answers is correct 63.0% 56.8% 49.1% O 10.9%

Q: alternatives с D B Alternatives alternatives have the following returns and standard deviations of…

A: The coefficient of variation (CV) is a statistical measure used to measure the relative variability…

Q: values. All other answers Risk-Adjusted Performance Measures s Sharpe Ratio be put ail Treynor's…

A: Risk adjusted measures are used to determine the reward an investor would get for taking that amount…

Q: Find the standard deviation for the given sample data. Round your answer to one more decimal place…

A: Standard deviation is the square root of variance. To find the variance, mean of the sample data is…

Q: Given the following grades on s test: 86, 92, 100, 93, 89, 95, 79, 98, 68, 62, 71, 75, 88, 86, 93,…

A: The objective of this question is to find the percentage of scores that lie within one and two…

Q: A regression line has an intercept value of 174.71 and slope value of 25.22. What is the predicted…

A: The predicted value (the y-value) of Y is defined as the predicted value of a dependent variable.…

Q: Whats R

A: (a) The hypotheses to test in an F-test for regression are:Null hypothesis (Ho): There is no…

Q: What is the f-stat and critical value?

A: Step 1: Objective and conceptObjective:-To determine the F statistic value and F critical value.…

Q: can you solve this question step by step in very detail and answer those a,b,c. this is so important…

A: a) Data Cleaning and Exploration:Import libraries: You'll need libraries like pandas for data…

Q: Which of the following is not a characteristic of the normal distribution? Equal probabilities at…

A: In understanding the characteristics of a normal distribution, we need to examine each given option…

Q: Question 5 Listen Which correlation coefficient matches the scatterplot below? **HINT** The…

A: The scatterplot in the image shows a weak positive correlation between the variables, as indicated…

Q: Consider the following results for independent random samples taken from two populations. Sample 1…

A: Solution A- Point of estimate the difference between the two population means= x1¯ - x2¯…

Q: Which interpretation is true for VaR = 20% at 99% significance level a. There is a 1 in 10 chance…

A: VAR is a measure that specifies the amount of potential loss or maximum loss which a firm can suffer…

Q: find the trynors ratio for q and compare it to treynor ratio for m does this analysis indicate…

A: Here,Beta q is 1.25rf is 2%rm is 12%rq is 13.5%

Q: Suppose we have the following values for variables X and Y: XY 06 13 20 What is the value for the…

A: Solution:Correlation coefficient measures the degree of relationship between two variables. If it is…

Q: If xestimatexestimate is estimated with a relative error of 0.001251 and an absolute error of…

A: Let's denote the estimated value as xestimate​ and the true value as x.Given:Relative error =…

Q: Assume the mean and standard deviation of sample returns are​ 8% and​ 10% respectively. Assuming…

A: Sample returns are 8% Standard deviation is 10% Returns are normally distributed To Find:…

Q: Use the following returns for X and Y. Year PA234S 1 5 Returns X 21.6% -16.6 9.6 19.2 4.6 Y 25.8%…

A: The standard deviation measures the level of risk associated with stock, whereas the average return…

Q: 30. Based on the Regression result for KLIC, if Variance of the Residuals is equal 0.0126 and…

A: Variance of the Residual Risk=0.0126 And variance of SPY=0.0037

Q: State of the Economy Boom Bust Probability 0.6 0.4 10.10%. 12.08% 11.72% 14.82%. Return on Security…

A: Portfolio expected return is the sum of weighted average return of individual securities. Where as…

Q: Which of the following would be an appropriate null hypothesis? A. The mean of a population is equal…

A:

Q: Which one of the following statements regarding the coefficient of determination is NOT correct?

A: Coefficient of correlation is the measure which is used by the management of the company so that it…

Q: Calculate the geometric mean return for the following data set: (Negative value should be indicated…

A: -14% = -0.14,15% = 0.15,-16% = -0.16,13.7% = 0.137,14.1% = 0.141.

Q: Which of the following is not recognized as a measurement of risk? O median Orange best case/worst…

A: Median and Range are not typically recognized as direct measurements of risk, while the other…

Q: kindly help

A: Certainly, based on the graph it appears there is a positive correlation between the logarithmic…

Q: Which of the options below is most likely FALSE based on the following scatter plot? Variable B 4.5…

A: Requirements of the question and the values we have to determine the false statement.

Q: You are testing the null hypothesis that there is no relationship between two variables, X and Y.…

A: Step 1:a) SSDFMSFRegression80180.0072.00error20181.11 Total10019   Fstat​=72 Step 2:b)  Critical…

Q: What is the standard deviation of the following distribution: Probability           Possible…

A: In finance, standard deviation is calculated to determine the degree of variation in a particular…

Q: 3. Security A has the following probability distribution of returns: Scenario Probability Return 0.1…

A: Calculation: Formula snip:

Q: Consider the following POPULATION of returns: 5%, -4%, -3%, and 12%. What is the standard deviation…

A: Returns 5% -4% -3% 12% 6.50%

Q: Comment on the SAS regression output including a-e. Compare and comment on the differences between…

A: The regression output provided is from a SAS procedure, which is used to estimate the parameters of…

Q: An asset has an average return of 10.73 percent and a standard deviation of 20.70 percent. What…

A: Average Return = 10.73%' Standard Deviation = 20.70% 95% Probability range = ?

Q: coefficient variation=.55 positive coeficient of correlation =.20 expected value=$1200 What does…

A: The measure that is used to calculate the dispersion of dataset is called the standard deviation. It…

Q: Calculate the arithmetic average for the following returns: Year Retur Ⓒ 24% O 2.2% 03.1% 0.34%…

A: In order to calculate the geometric mean, we must consider the return at the end of the period due…

Q: What is the test statistics and critical values. I got 4.20 for the test statistic, but it says its…

A: I will use Excel for run a regression analysis, here are the steps you will need to follow in order…

Risk and return

Before understanding the concept of Risk and Return in Financial Management, understanding the two-concept Risk and return individually is necessary. 

Capital Asset Pricing Model

Capital asset pricing model, also known as CAPM, shows the relationship between the expected return of the investment and the market at risk. This concept is basically used particularly in the case of stocks or shares. It is also used across finance for pricing assets that have higher risk identity and for evaluating the expected returns for the assets given the risk of those assets and also the cost of capital.