The returns on shares of Valley Transporter are predicted under the following various economic conditions: Recession -0. 10 Normal +0.04 Boom +0.24 If each economy state has the same probability of occurring (33.33%), what is the variance of the stock?

Consider the following information: State of Probability of Economy State of Economy Boom Bust 0.62 0.38 Rate of Return if State Occurs Stock A 0.09 0.20 Stock B 0.17 0.06 Stock C 0.35 -0.10 6 a. What is the expected return on an equally weighted portfolio of these three stocks? (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Expected return % b. What is the variance of a portfolio invested 20% each in A and B and 60% in C? (Do not round intermediate calculations. Roun the final answer to 6 decimal places.) Variance

A stock's returns have the following distribution: Demand for theCompany's Products Probability of thisDemand Occurring Rate of Return ifthis Demand Occurs Weak 0.1 (22%) Below average 0.2 (13)    Average 0.3 17    Above average 0.3 39    Strong 0.1 64      1.0   Assume the risk-free rate is 2%. Calculate the stock's expected return, standard deviation, coefficient of variation, and Sharpe ratio. Do not round intermediate calculations. Round your answers to two decimal places. Stock's expected return:   % Standard deviation:   % Coefficient of variation:  Sharpe ratio:

Listed below is the return probability distribution associated with the stocks of XYZ Company and the market portfolio under different states of the economy: State Recession Normal Boom 0.00452 O 0.00552 0.00652 Probability O 0.00752 0.4 0.3 0.3 XYZ Return What is the covariance between XYZ return and Market return? -3% 14% 20% Market Return 2% 8% 16%

A stock will have a loss of 10.6 percent in  a bad economy, a return of 10.4 percent in a normal economy, and a return of 24.3 percent in a hot economy.  There is 28 percent probability of a bad economy, 41 percent probability of a normal economy, and 31 percent probability of a hot economy.  What is the variance of the stock's returns?

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?

The following information relates to the possible returns of ABC limited share depending on the performance of the economy: State of the economy Probability of the returns Return Boom 0.4 20% Normal 0.4 15% Recession 0.2 9% Required:    i.         Compute the expected return of the share    ii.         Compute the standard deviation and coefficient of variation of the share.

Compute the weights in a portfolio consisting of two kinds of stock if the expected return on the portfolio is to be E(KV ) = 20%, given the following information on the returns on stock 1 and 2: Scenario ω1 (recession) Probability Return K1 Return K2 0.1 ω2 (stagnation) 0.5 ω3 (boom) 0.4 −10% 0% 20% 10% 20% 30% To compute the variance of KV we need to know not only the variances of the returns K1 and K2 on the components in the portfolio, but also the covariance between the two returns.

Consider the following information: Probability of State of State of Economy Boom Bust Economy 0.55 8.45 a. What is the expected return on an equally weighted portfolio of these three stocks? (Do not round intermediate Round the final answer to 2 decimal places.) Expected return Variance Rate of Return if State Occurs Stock A Stock B Stock C 0.06 0.14 0.34 0.10 0.02 -0.07 10.65% b. What is the variance of a portfolio invested 25% each in A and B and 50% in C? (Do not round intermediate calc the final answer to 6 decimal places.)

A stock's returns have the following distribution: Demand for theCompany's Products Probability of ThisDemand Occurring Rate of Return IfThis Demand Occurs Weak 0.1 (48%) Below average 0.1 (15)    Average 0.3 11    Above average 0.3 40    Strong 0.2 65      1.0   Assume the risk-free rate is 4%. Calculate the stock's expected return, standard deviation, coefficient of variation, and Sharpe ratio. Do not round intermediate calculations. Round your answers to two decimal places. Stock's expected return:   % Standard deviation:   % Coefficient of variation:  Sharpe ratio: