Calculate the standard deviations for roll and ross

Assignment Help Financial Management

Reference no: EM131982981

		Security Returns If State Occurs
State of	Probability of
Economy	State of Economy	Roll		Ross
Bust	.40	-10	%	21	%
Boom	.60	28		8

Calculate the standard deviations for Roll and Ross by filling in the following table (verify your answer using returns expressed in percentages as well as decimals):

(Negative values should be indicated by a minus sign. Do not round intermediate calculations. Round your Standard deviation answers to 2 decimal places and other answers to 4 decimal places. Omit the "%" sign in your response.)

State
of Economy

Probability of
State of Economy

Return Deviation
from Expected Return

Squared Return
Deviation

Product

Roll

Bust

.40

Boom

.60

s² =

Ross

Bust

.40

Boom

.60

s² =

	Standard Deviations
Roll	%
Ross	%

Reference no: EM131982981

Questions Cloud

Affected by the stock-appreciation rights plan : Prepare a schedule that shows the amount of compensation expense allocable to each year affected by the stock-appreciation rights plan.

What is the expected price of this stock in 13 years : The dividends are expected to grow at a constant rate of 5 percent per year, indefinitely. Assume investors require an 8.3 percent return on this stock.

Airline pilot flying international routes : You are an airline pilot flying international routes for a major U.S. airline. During an overnight stay in a foreign country

What action should administrators take for the existing user : What action should administrators take for the existing local users to allow a single user account to be used for local and remote access?

Calculate the standard deviations for roll and ross : Calculate the standard deviations for Roll and Ross by filling in the following table.

Experience a health problem : You are a pilot with a current aviation medical certificate but experience a health problem.

Adequate to measure institution value at risk : Is RiskMetrics model always adequate to measure an institution’s value at risk? Determine the bank's DEAR for this € position using 99 percent confidence level

Discussion on topic of Concepts of infectious disease : Discussion up around the general topic of Concepts of infectious disease. Take an active role in presenting this topic to the other students

Non-commercial cross-country flight : You are a piloting a light general aviation aircraft solo within the U.S. on a non-commercial cross-country flight under visual flight rules (VFR).

User Account

All Pages