Suppose financial analysts believe that there are four equally likely states of the economy: depression, recession, normal and boom. The return on the Allos Inc. are expected to follow the economy closely. The return predictions are as follows: State of the Economy Allos Inc. Returns (RA) Depression -20% Recession 10% Normal 30% Boom 50%   Required: Calculate the expected returns Calculate the variance Calculate the standard deviation

Q: What is the variance on a stock that has expected rate of return of 18% in a boom economy, 8% in a…

A: Variance is sum of [Probability*(Return-Mean)^2]

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A: Return can be calculated by 2 means one is geometric return and athematic return

Q: Given the following information, what is the variance of the returns on this stock? State of Economy…

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A: Probability Return on stock Mild recession 0.35 -5.00% Growth 0.45 15.00% Strong growth 0.2…

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A: Expected Return:    The expected return is the minimum required rate of return which an investor…

Q: Calculate mean and standard deviation for the following asset. Economic State…

A: Calculation of mean and standard deviation: Answer: Mean for the given asset is 10.00% Standard…

Q: You are given the following information: ETT State of Economy State of Economy If State Occurs…

A:

Q: Following are four economic states, their likelihoods, and the potential returns:      Economic…

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Q: Use the information from this table to find the variance for each asset. State of Economy…

A: Formulas for asset J:

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Q: The stock of Tristar Bank will have a loss of 10.8 percent in a slow economy, a return of 10.6…

A: Excel Spreadsheet:

Q: Stock W has the following returns for various states of the economy: State of the Economy…

A: Standard Deviation is the measurement of the spread of the returns in relation to their mean.

Q: Variance and standard deviation ​(expected). Bacon and​ Associates, a famous Northwest think​ tank,…

A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…

Q: The expected annual returns are 15% for investment 1 and 12% for investment 2. The standard…

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Q: An analyst has estimated how a particular stock’s return will vary depending on what will happen to…

A: The standard deviation is the variability in the returns of the stock.

Q: 14. SNOFI Inc.'s manager believes that economic conditions during the next year will be strong,…

A: Expected return refers to the anticipated amount of profit or loss that an investor calculates from…

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A: Expected return refers to the investor’s predicted amount of profit and loss on an investment.…

Q: Stock W has the following returns for various states of the economy: State of the Economy…

A: Expected Return and Standard deviation of the Stock is determined using the below formula: Expected…

Q: The Probability and Return for the four financial instruments are given for your reference in the…

A: Variance helps to determine how the asset has performed.

Q: ased on the following information, what is the standard deviation of returns?   State of Economy…

A: Standard deviation :- A standard deviation is a statistic that determines how far a dataset deviates…

Q: Variance and standard deviation ​(expected). Hull​ Consultants, a famous think tank in the​ Midwest,…

A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…

Q: Suppose an investor wants to invest either in the common stock of Square Corporation or Beximco…

A: In this question coefficient of variation should be solved in order to analyse the risk to return…

Q: The rate of return on the common stock of Kang Distribution is expected to be 13.5 percent in a boom…

A: Given     State of Economy Prob Returns Boom 0.11 13.5 Normal 0.63 8 Recession 0.26 2.5…

Q: Consider the following returns and states of the economy for TZ.Com.: Economy Probability…

A: Firstly, Variance has to be calculated through following steps:

Q: Compute the weights in a portfolio

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Q: Based on the following information, calculate the expected return and standard deviation: State of…

A: Computation of expected return: Hence, the expected return is 9.48%. Working note:

Q: Boom Economy and Normal Economy. The Boom economy has 30% chance of happening, while Normal economy…

A: Hello, since your question has multiple sub-parts, we will solve first three sub parts for you. If…

Q: An asset has a current price of $10 and has volatility of 0.35. The expected price in 9 months is…

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Q: The Probability and Return for the four financial instruments are given for your reference in the…

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Q: An analyst has estimated how a particular stock’s return will vary depending on what will happen to…

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Q: Based on the following information, what is the standard deviation of returns? Probability of State…

A: Standard Deviation measures the dispersion of a dataset from the mean. To compute the standard…

Q: Assume that a project is expected to produce the following cash flows in each year, each periodic…

A: NPW FORMULA: NPW = -initial value +present value of future cashflow

Q: Expected Return, Variance, Std. Deviation and Cofficient of Variation: Magee Inc.'s manager believes…

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

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.