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: Coefficient of Variation

A: Please note that I'm assuming that we need to calculate the Coefficient of variation of the 2…

Q: 4. Given the probability and returns associated with each state, what is the expected return? What…

A: Calculations of expected return and standard deviation: Excel workings:

Q: Given the following probability distribution, what is the standard deviation of returns for Security…

A: standard deviation of security is computed by following formula:-standard deviation of security =…

Q: Given the following probability distribution, what is the standard deviation of returns for Security…

A: Mean= Σ [xi*P(xi)]Standard deviation =sqrt(Σ (xi - x̄)^2*P(xi))

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: Can you explain, when calculating the mean why the probability is included in the calculation? eg…

A: In the financial world, two terms are widely used: i) Ex-ante and ii) Ex-post i) Ex-ante which means…

Q: Consider the following data for a dependent variable y and two independent variables, x1 and x2. 30…

A: Regression analysis is the relationship between independent and dependent variables. Regression…

Q: q12-  In the distribution of a variable, if the mean is much smaller than the median, the data…

A: The mean, mode and median are the three categories which can be used to figure out if you have a…

Q: If two returns are positively related to each other, they will have a ________, and if they are…

A: In the given question we are given 4 options regarding a statement and we need to choose correct…

Q: What is the standard deviation of a random variable q with the following probability distribution?…

A: Standard deviation is a statistical measure that indicates how much the data in a set deviates or…

Q: Probability Return 0.35 -2% 0.35 12% 0.3 18% Expected return is ______ ?

A: The table is: Probability Return 0.35 -2% 0.35 12% 0.3 18%

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: 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: Use the following information to answer the question.    Based on above data, determine the…

A: Given information : Outcome  Probability  Return Recession  20% -20% Expansion 25% 15% Boom…

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: 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: Given the following probability distribution, what are the expected return and the standard…

A: The expected return is the return expected from the investment made. The expected return in this…

Q: ush Corporation has two bonds outstanding, each with a face value of $2.4 million. Bond A is secured…

A: Face value$2,400,000Value of the head office building$1,040,000Expected amount from other…

Q: What is the mean of a binomial distribution in which the number of trials n = 100 and the…

A: The expected value, or mean, of a binomial distribution, is calculated by multiplying the number of…

Q: 6-5. (Standard deviation) Given the following prot Nasional Berhad, find the standard deviation.…

A: The standard deviation is a tool that dictates that how much variance between the average and actual…

Q: You are given the following possible returns for Security J. Given this information, determine the…

A: The coefficient of variation (CV) is a statistical measure that compares the standard deviation of a…

Q: A probability distribution of possible returns from a share has a variance of 0.0064.  What is the…

A: In the given question we are given variance of a probability distribution of possible returns from a…

Q: Given the following probability distribution, what is the standard deviation of returns for Security…

A: The standard deviation of the stock or security helps us know the risk level of the stock. A higher…

Q: Yr 1 2 the variance, standard deviations, and coefficient of variation for X and Y. Which stock is…

A: YearsRxRy112.209.6520.00-2.0036.5012.5048.009.57Required:Average Return=:Standard…

Q: Probability 0.15 0.20 2.0.35 0.20 0.10 8.65 2.94 Based on the above information, what is the risk…

A: To calculate the standard deviation of a probability distribution, we first need to calculate the…

Q: Given the following probability and the standard deviation of returns for Security J? The answer…

A: A statistical measure that represents the variation in the return on the stock is term as the…

Q: Given the following probability distribution of returns: Probability Return 0.1 -15.0%…

A: Probability Return 0.1 -15.00% 0.25 0.00% 0.3 8.50% 0.25 12.00% 0.1 32.00%

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.