You have the below information about the expected returns of Palantir Technologies and Valar Ventures for the coming year, which both heavily depend on the state of the economy: Economic State Probability Palantir Technologies Valar Ventures Boom 0.10 21.00% 39.00% Normal 0.55 12.00% 17.00% Recession 0.35 0.00% -8.00% A) What is the expected return of Palantir Technologies in the coming year? (Round your answer to two decimal places) B) What is the expected return of Valar Ventures in the coming year? (Round your answer to two decimal places) C) What is the expected standard deviation of Palantir Technologies' return in the coming year? (Round your answer to two decimal places)
You have the below information about the expected returns of Palantir Technologies and Valar Ventures for the coming year, which both heavily depend on the state of the economy: Economic State Probability Palantir Technologies Valar Ventures Boom 0.10 21.00% 39.00% Normal 0.55 12.00% 17.00% Recession 0.35 0.00% -8.00% A) What is the expected return of Palantir Technologies in the coming year? (Round your answer to two decimal places) B) What is the expected return of Valar Ventures in the coming year? (Round your answer to two decimal places) C) What is the expected standard deviation of Palantir Technologies' return in the coming year? (Round your answer to two decimal places)
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
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Transcribed Image Text:You have the below information about the expected returns of Palantir Technologies and Valar Ventures for the coming year, which both heavily depend on the state of the economy:
Economic State
Probability
Palantir Technologies
Valar Ventures
Вoom
0.10
21.00%
39.00%
Normal
0.55
12.00%
17.00%
Recession
0.35
0.00%
-8.00%
A) What is the expected return of Palantir Technologies in the coming year?
(Round your answer to two decimal places)
B) What is the expected return of Valar Ventures in the coming year?
(Round your answer to two decimal places)
C) What is the expected standard deviation of Palantir Technologies' return in the coming year?
%
(Round your answer to two decimal places)
D) What is the expected standard deviation of Valar Ventures' return in the coming year?
(Round your answer to two decimal places)
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