AProblem 13-5 Calculating Expected Return [LO1]Consider the following information:State of EconomyRecessionBoomProbability ofPortfolioState ofReturn if StateOccurs-.20.28Economy.35.65Calculate the expected return. (Do not round intermediate calculations and enter youranswer as a percent rounded to 2 decimal places, e.g., 32.16.)Expected returnt]nces%

EXPLANATION:GIVEN:- Probability of recession (State of Economy): 0.35Probability of boom economy…

Answered: A Problem 13-5 Calculating Expected…

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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CНАРTER 8 P8-1 Expected Return Given these three economic states, their likelihoods, and the potential returns, compute the expected return, standard deviation and coefficient of variation: Economic Probability Return State Fast Growth 0.10 50% Slow Growth 0.80 15% Recession 0.10 -30%
erk F21 Question 8 of 20 View Policies Current Attempt in Progress In a period of inflation, which cost flow method produces the highest net income? O FIFO method O LIFO method O average-cost method O gross profit method eTextbook and Media Save for Later
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 %
Consider the following information: State of Economy Probability of State of Economy Rate of Return if State Occurs Recession .21 −.04 Normal .65 .16 Boom .14 .22 Calculate the expected return. Multiple Choice 13.15% 2.27% 12.64% 13.27% 12.01%
Q6 Compute the expected return given these three economic states, their likelihoods, and the potential returns: (Round your answer to 1 decimal place.) Economic State Probability Return Fast growth 0.3 40 % Slow growth 0.4 10 Recession 0.3 –25 EXPECTED RETURN %
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es Consider the following information: State of Economy Recession Boom Probability of State of Economy .36 .64 Expected return 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 .22
Consider the following information: State of Economy Recession Boom Probability of State of Economy .20 .80 Expected return Rate of Return if State Occura 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. % -.13 .19
Sheet 5 Use Sheet 5 to complete the following Date AMZN Return BAC Return Market Return Risk-Free Return AMZN Excess Return* BAC Excess Return* Market Excess Return* 3/1/2017 0.05 -0.04 0.04 0.0050 0.04 -0.05 0.03 4/1/2017 0.04 -0.01 0.00 0.0050 0.04 -0.02 -0.01 5/1/2017 0.08 -0.04 0.01 0.0050 0.07 -0.04 0.00 6/1/2017 -0.03 0.08 0.01 0.0050 -0.03 0.08 0.01 7/1/2017 0.02 -0.01 0.00 0.0050 0.02 -0.01 0.00 8/1/2017 -0.01 -0.01 0.02 0.0050 -0.01 -0.01 0.01 9/1/2017 -0.02 0.06 0.00 0.0050 -0.02 0.06 0.00 10/1/2017 0.15 0.08 0.02 0.0050 0.14 0.08 0.01 11/1/2017 0.06 0.03 0.02 0.0050 0.06 0.02 0.02 12/1/2017 -0.01 0.05 0.03 0.0050 -0.01 0.04 0.02 1/1/2018 0.24 0.08 0.01 0.0050 0.24 0.08 0.00 2/1/2018 0.04 0.00 0.06 0.0050 0.04 0.00 0.05…
P Flag question Dhofar Energy Services has a Beta = 1.97 The risk-free rate on a treasury bill is currently 4.4% and the cost of equity has 20.70%. What is the market return? Select one: Oa 0.1267 Ob. 1.0827 Oc. All the given choices are not correct Od. 0.2497 Oe 0.1476
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.)
State ofEconomy Probability of Stateof Economy Rate of Returnif State Occurs Recession .24 –.10 Normal .46 .12 Boom .30 .31 Calculate the expected return.

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