Calculate the standard deviation for the two stocks

Assignment Help Financial Management
Reference no: EM131909210

Consider the following information: Probability of State Rate of Return if State Occurs Economy of Economy Stock A Stock B Recession .22 .020 – .27 Normal .57 .100 .17 Boom .21 .160 .40 a. Calculate the expected return for the two stocks. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Expected return E(RA) % E(RB) % b. Calculate the standard deviation for the two stocks. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) Standard deviation σA σB %

Reference no: EM131909210

Questions Cloud

Identify the nutritional considerations of the individual : Explain how to treat this disease using conventional medicine and, complementary and alternative medicine (CAM), otherwise known as holistic medicine.
Discuss the key concepts relating to working with teams : Working with others is a critical skill no matter the type of work or work environment that you will find yourself in. Several key concepts relating to working.
What is the length of the system : In a certain linear conjugated pi-system, the n=5 --> n=6 transition is induced by light of wavelength 548 nm. What is the length of the system?
Powerboat moves at relativistic speeds : You are relaxing on the beach when your friend suddenly zooms by in an extremely fast powerboat.
Calculate the standard deviation for the two stocks : Calculate the standard deviation for the two stocks. Calculate the expected return for the two stocks.
What happened to create the evil of the holocaust : What happened to create the evil of the Holocaust? Why did so many millions have to die? What will Europe look like after the war?
What range would the equipment internal rate of return fall : Briar Corp. is considering the purchase of a new piece of equipment. what range would the equipment’s internal rate of return fall?
How do ageist images of older adults have negative outcomes : How did the couple in the video portray the images of aging? How is this similar or different from the images that you addressed in your analysis
Conduct some additional internet research on OCBC : Conduct some additional internet research on OCBC, and examine how OCBC has performed recently-what has it done more of, less of.

Reviews

Write a Review

Financial Management Questions & Answers

  Call option value using the two-state stock price model

Calculate your estimate of the the call option's value using the two-state stock price model.

  Average annual nominal rate of interest on treasury bills

What has been the average annual nominal rate of interest on Treasury bills over the past 111 years (1900-2011)? what is the process to calculate

  Dollar flows and calculate the npv

The dollar required return is 12 percent per year, and the current exchange rate is SF 1.12. The going rate on Eurodollars is 5 percent per year. It is 4 percent per year on Euroswiss. Use the approximate form of interest rate parity in calculatin..

  Calculate the accounting rate of return from each asset

Calculate the accounting rate of return from each asset, assess its acceptability, and indicate which asset is best, using the accounting rate of return.

  Use of lifo contribute to earnings management

How does the use of LIFO contribute to earnings management?

  What is the net income for sugarpovas tennis shop inc

Y3K, Inc., has sales of $4,700, total assets of $2,955, and a debt-equity ratio of 1.20. If its return on equity is 17 percent, what its net income?

  What is your expected income next year

What is your expected income next year?- Suppose that you could insure yourself against the risk of reduced consumption next year. What would the actuarially fair insurance premium be?

  Invest in portfolio containing stock

You have $134,000 to invest in a portfolio containing Stock X, Stock Y, and a risk-free asset.

  What was its sustainable sales growth rate

A venture's common equity account increased by $100,000 the past year and ended the year at $500,000. What was its sustainable sales growth rate?

  What is the external financing needed

The most recent financial statements for Williamson, Inc., are shown here (assuming no income taxes): Income Statement Balance Sheet Sales $ 9,400 Assets $ 19,050 Debt $ 6,050 Costs 6,940 Equity 13,000 Net income $ 2,460 Total $ 19,050 Total $ 19,050..

  What is the fair present value of limited brandss stock

Financial analysts forecast Limited Brands (LTD) growth for the future to be 13.8 percent. LTD’s most recent dividend was $2.40. What is the fair present value of Limited Brands’s stock if the required rate of return is 16.5 percent?

  What is the break-event interest rate for this project

An investor would like to purchase a new apartment property for $2 million. However, she faces the decision of whether to use 70 percent or 80 percent financing

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd