Consider the following information:Rate ofReturn.If StateOccursState ofEconomyRecessionNormalBoomProbability ofStateof Economy2445.31-.091130Calculate the expected return. (Do not round intermediate calculations and enter youranswer as a percent rounded to 2 decimal places, e.g., 32.16.)Expected return%

The expected return is the sum product of the probability and rate of return in each state. The…

Consider the following information: State of Economy Recession Normal Boom Probability of State of Economy 24 45 .31 Rate of Return if State Occurs Expected return -.09 11 -.30 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.) %

Consider the following information: State of Economy Recession Normal Boom Probability of State of Economy 24 45 .31 Rate of Return if State Occurs Expected return -.09 11 -.30 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.) %

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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Similar questions

Computer the expected return given these three economic states, their likelihoods, and the potential returns. Economic State Probability Return Fast Growth 0.40 25% Slow Growth 0.55 12% Recession 0.05 -50% Multiple Choice ___ -4.3 percent ___ 14.1 percent ___ 19.1 percent ___ 29.0 percent
Calculate the standard deviation of this scenario Outcome 1: Recession. Probability = 40% . Return = 7.38%. Outcome 1: Recovery. Probability = 60%. Return = 17.27 %. Answer in % terms w/o % sign and to 4 decimal places (1.2345)
LO 5 Book Ms Based on the following information: State of Economy Depression Recession Normal Boom Probability of State of Economy 0.13 0.22 0.47 0.18 You received partial credit in the previous attempt. Rate of Return if State Occurs -0.108 0.056 0.127 0.208 Calculate the expected return. (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Expected return 9.54% Calculate the standard deviation. (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Standard deviation 5.58% m
Consider the following information: State of Economy Probability of State of Rate of Return if State Recession Normal Boom Economy .11 .35 .54 Calculate the expected return. Multiple Choice 20.82% 21.86% О 2.53% Occurs -.06 .12 .32
F1
Q222
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Consider the following returns and states of the economy for TZ.Com.: Economy ProbabilityReturn Weak 15% Normal 50% Strong 35% -9% 2% 6% What is the standard deviation of TZ's returns? SET YOUR CALCULATOR TO FOUR DECIMAL PLACES AND ROUND TO 2 DECIMAL PLACES AT THE END. DO NOT ENTER THE %. FOR EXAMPLE, IF YOUR ANSWER IS 7.7011% ENTER IT AS 7.70.
es Consider the following information: State of Economy Recession Boom Probability of State of Expected return Economy .28 72 Portfolio Return if State Occurs 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.) -.13 .23 %
q5- 8.2 Prove step by step working out no excel
State of Economy Bust Boom State of Economy Roll Bust Boom Ross Bust Boom Calculate the standard deviations for Roll and Ross by filling in the following table: (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 4 decimal places.) Probability of State of Economy Probability of State of Economy .50 .50 .50 .50 .50 .50 Return Deviation from Expected Return -0.1950 0.2000 Security Returns if State Occurs 0.0600 -0.0600 Roll -14% 25 Squared Return Deviation 0.0380 0.0380 0² = Ross (0.0036) 0.0036 0²= 18% 6 Product 19.5000 0.0600
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