Calculate the expected rates of return for the market

Assignment Help Other Subject

Reference no: EM13331682

Te market and Stock J have the following probabilitydistributions:

Probability rM rJ

0.3 15% 20%

0.4 9% 5%

0.3 18% 12%

a. Calculate the expected rates of return for the market and StockJ

b. Calculate the standard deviations for the market and StockJ.

c. Calculate the coefficients of variation for the market and StockJ.

Reference no: EM13331682

Questions Cloud

Working in both liquid and powdered juice category : A company of packaged foods is offering powdered juices in thissummer in an environment where there are a number of successfuljuice brands are already working in both liquid and powdered juice category.

Transition to leadership: : What will you suggest for these three persons? What leadership style they should adopt for the smooth transition. Please explain in your own wards with valid reasons and points.

What information-convey to the new entrants : “Suppose you are Chief Economistin Planning Commission of Pakistan. The Commission has just hired25 new Research Associates and has entrusted you with the task of orientation of these employees. What information you would convey to the new entrants?”

What are mortgagepass-through securities : How would the productive capacity ofthe U.S. economy be affected if there were no markets in which onecould trade financial assets? What are mortgagepass-through securities? What do market indexes measure? What is thedifference between DJIA and S&P 5..

Calculate the expected rates of return for the market : Calculate the expected rates of return for the market and StockJ. Calculate the standard deviations for the market and StockJ. Calculate the coefficients of variation for the market and StockJ.

Seating arrangement style would be more preferable : Let’s suppose you are invited as a guest speaker by theprimary school principal. Principal asks you to give presentationto the 15 school teachers to encourage them to stop beatingchildren and other physical punishments to maintain discipline andgood ..

Why is mechanical weathering most effective : Why is mechanical weathering most effective in cold regions andchemical weathering most effective in warm, moist regions? Providean example of each.

How important is color and a specific color scheme : How important is color and a specific color scheme? In advertising it is very important. Many well-known household namebrands. have a color scheme that the majority of consumers canidentify. We know that McDonalds has a red and yellow color scheme;

What is trade credit : Why it is so difficult for most smallbusiness owners to raise the capital needed to start, operate, orexpand their ventures? What is trade credit? How important is itas a source of debt financing to small firms?

User Account

All Pages