Consider the following information: State of Economy Recession Normal Boom Probability of State of Economy Expected return .19 .46 .35 Rate of Return if State Occurs Calculate the expected return. Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. % -.10 .12 .31

Consider the following information: State of Economy Recession Normal Boom Probability of State of Economy Expected return .19 .46 .35 Rate of Return if State Occurs Calculate the expected return. Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. % -.10 .12 .31

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

Problem 1PS

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You are given the following information: State of Economy Probability ofState of Economy Rate of ReturnIf State Occurs Depression .07 −.097 Recession .17 .067 Normal .42 .138 Boom .34 .219 Calculate the expected return. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Expected return % Calculate the standard deviation. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Standard deviation %
The returns on AA Berhad and BB Berhad are given below, State of Economy Probability of Return (%) AA Return (%) BB occurring Berhad Berhad 1 0.30 6 -15 0.50 10 18 3 0.20 17 40 Calculate: a) Expected return E(R) for i) АА Beфad ii) ВВ Behad b) Standard deviation for i) AA Berhad ii) ВВ ВBehad c) Discuss any FOUR (4) benefits of diversification by referring to AA and BB Berhad.
You have the following information: t1 t2 t3 t4 TSLA Returns 0.05 -0.04 0.1 -0.01 Market Returns 0 -0.04 0.01 0.01 What is the Covariance of TSLA and the Market? Type your answer as decimal (i.e. 0.052 and not 5.2%). Round your answer to the nearest four decimals if needed.
3. Compute Project Y’s accounting rate of return. The numerator drop down options are: accounts receivable, annual income, average investment, average total assets, cost of goods sold, current assets, current liabilities, net sales, total assets The denominator dropdown options are: accounts receivable, annual income, average investment, average total assets,
Given the forward rate f3,6 = 6% and the forward rate ƒ6,8 = 2%, calculate the forward rate ƒ3,8. Give your answer as a percentage to 3 significant figures. Do not enter the percentage sign. For example, if your answer is 1.23%, then enter 1.23 Answer:
Use the following information to answer the question. Based on above data, determine the expected return? Select one: a. 12.06% b. 19% c. 17.35% d. 16.72%
Consider the following information: State ofEconomy Probability of Stateof Economy Rate of Returnif State Occurs Recession .21 –.12 Normal .48 .14 Boom .31 .33 Calculate the expected return. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Choices for the last requirement, "determine the approximate internal rate of return from the choicies (pick the closest answer. a. 29% b. 20% c. 26% d. 22%
A net present worth equation is used to solve for a ROR by setting the net present worth equation Equal to: Select one: a. -1 b. -10 c. zero d. 1
Given the forward rate ƒ3,6 = 5% and the forward rate ƒ6,8 3%, calculate the forward rate f3,8. Give your answer as a percentage to 3 significant figures. Do not enter the percentage sign. For example, if your answer is 1.23%, then enter 1.23 =
When using annual worth to evaluate the attractiveness of a single alternative, what value is the calculated AW compared to? a. PW b. FW c. 0.0d. MARR.
Suppose the returns on an asset are normally distributed. The historical average annual return for the asset was 6.4 percent and the standard deviation was 12.4 percent. A. What range of returns would you expect to see 95 percent of the time? (Enter your answers for the range from lowest to highest. A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) B. What range of returns would you expect to see 99 percent of the time? (Enter your answers for the range from lowest to highest. A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.)

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