Security Returns if State Occurs State of Economy Probability of State of Economy Roll Ross Bust .60 9 % 13 % Boom .40 20 5 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.) State of Economy Probability of State of Economy Return Deviation from Expected Return Squared Return Deviation Product Roll Bust .60 ? ? ? Boom .40 ? ? ? σ2 = ? Ross Bust .60 ? ? ? Boom .40 -0.0480 0.0023 ?
Security Returns if State Occurs State of Economy Probability of State of Economy Roll Ross Bust .60 9 % 13 % Boom .40 20 5 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.) State of Economy Probability of State of Economy Return Deviation from Expected Return Squared Return Deviation Product Roll Bust .60 ? ? ? Boom .40 ? ? ? σ2 = ? Ross Bust .60 ? ? ? Boom .40 -0.0480 0.0023 ?
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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Question
| Security Returns if State Occurs |
|||||
| State of Economy |
Probability of State of Economy |
Roll | Ross | ||
| Bust | .60 | 9 | % | 13 | % |
| Boom | .40 | 20 | 5 | ||
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.)
|
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