Following are four economic states, their likelihoods, and the potential returns:Probability0.22Economic StateFast growthSlow growthRecessionDepression0.520.190.07Expected returnStandard deviationCompute the expected return and standard deviation.Note: Do not round intermediate calculations and round your answers to 2 decimal places.Return76%18-18-52%%

Expected return = (Return under fast growth × probability of fast growth) + (Return under slow…

Following are four economic states, their likelihoods, and the potential returns: Economic State Fast growth Slow growth Recession Depression Probability 0.22 0.52 0.19 0.07 Expected return Standard deviation Return 76% Compute the expected return and standard deviation. Note: Do not round intermediate calculations and round your answers to 2 decimal places. % % 18 -18 -52

Following are four economic states, their likelihoods, and the potential returns: Economic State Fast growth Slow growth Recession Depression Probability 0.22 0.52 0.19 0.07 Expected return Standard deviation Return 76% Compute the expected return and standard deviation. Note: Do not round intermediate calculations and round your answers to 2 decimal places. % % 18 -18 -52

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

Following are three economic states, their likelihoods, and the potential returns: Economic State Fast growth Slow growth Recession Probability 0.27 0.35 0.38 Standard deviation Return 32% 4 -22 Determine the standard deviation of the expected return. (Do not round intermediate calculations and round your answe decimal places.) %
Following are three economic states, their likelihoods, and the potential returns: Economic State Fast growth Slow growth Recession Probability 0.32 0.34 0.34 Return 42% 19 -45 Determine the standard deviation of the expected return. Note: Do not round intermediate calculations and round your answer to 2 decimal places. Standard deviation %
Use the following information on states of the economy and stock returns to calculate the standard deviation of returns. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Probability of State of Security Return if State Occurs State of Economy Economy 0.40 Recession Normal -5.50% 11.00 0.40 0.20 Вoom 17.00
Following are three economic states, their likelihoods, and the potential returns: Probability Return 0.29 25% 11 -38 Economic State Fast growth Slow growth Recession 0.41 0.30 Determine the standard deviation of the expected return. (Do not round intermediate calculations and round your answer to 2 decimal places.) Standard deviation %
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.
Following are three economic states, their likelihoods, and the potential returns: Economic State Probability Return Fast growth 0.24 33 % Slow growth 0.52 7 Recession 0.24 –40 Determine the standard deviation of the expected return. (Do not round intermediate calculations and round your answer to 2 decimal places.)
Following are three economic states, their likelihoods, and the potential returns: Economic State Fast growth Slow growth Recession Probability 0.20 0.58 0.22 Standard deviation Return 30% 5 -35 Determine the standard deviation of the expected return. (Do not round intermediate calculations and round your answer to 2 decimal places.) %
Use the following information on states of the economy and stock returns to calculate the standard deviation of returns. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) State of Economy Probability ofState of Economy Security Returnif State Occurs Recession 0.40 −4.50 % Normal 0.50 13.00 Boom 0.10 25.00
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 %
Use the following information on states of the economy and stock returns to calculate the expected return for Dingaling Telephone: (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Probability of State of Security Return if State Occurs State of Economy Recession Economy 0.30 Normal Вoom -6.5% 9.0 16.6 0.55 0.15
Following are four economic states, their likelihoods, and the potential returns: Economic State Probability 0.31 0.50 0.16 0.03 Fast growth Slow growth Recession Depression Compute the expected return and standard deviation. (Do not round intermediate calculations and round your answers to 2 decimal places.) Expected return Standard deviation Return 78% 15 -18 -49 % %
Consider the following returns and states of the economy for TZ.Com.: Economy Probability Return Weak 15% 2% Normal 50% 8% Strong 35% 15% What is the standard deviation of TZ's returns?

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