Compute expected rate of return on each stock and market

Reference no: EM13477498

Consider the following scenario analysis for Stocks A and B and for the market portfolio (M)

		Rate of Return
State of Economy	Probability of State	Stock A %	Stock B %	Market %

Boom	0.1	30	45	33
Good	0.6	12	10	15
Average	0.2	1	-15	-5
Bust	0.1	-20	-30	-9

a) Calculate the expected rate of return on each stock and the market?

b) Find the standard deviation of returns for each asset?

Reference no: EM13477498

Questions Cloud

Analysis as well evaluation of the article putting : you will analyze and evaluate a human ecology events article. the articles must be published during the term that the

Firm a had the following selected items on its balance : firm a had the following selected items on its balance sheetcash28000000common stock 50 par 2000000 shares

Fitness gymnasium is a large fitness gym in lincoln : formulation of the research problemfitness gymnasium is a large fitness gym in lincoln nebraska. members of learning

Why are many governments in todays world liberalizing : 1. why are many governments in todays world liberalizing cross-border movements of goods services and resources?2.

Compute expected rate of return on each stock and market : consider the following scenario analysis for stocks a and b and for the market portfolio mrate of returnstate of

The standard deviation variance and coefficient of : 1.the standard deviation variance and coefficient of variation of the daily returns for the portfolio must be

Te growth rate is expected to fall to constant rate of 7 : abc just paid a dividend of 3.00. it is expected to grow at 20 per year over the following three years and then from

With emerging information regarding the nsas prism program : with emerging information regarding the nsas prism program and chinas golden shield project has either country directly

Define the philosophy of crime reduction through : q explain the philosophy of crime reduction through environmental design crted. how can one go about using the risk

Reviews

Write a Review

Required(*) Message

Finance Basics Questions & Answers

Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

State pricing theory and no-arbitrage pricing theory

Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

Effect of financial leverage

The Effect of Financial Leverage and working capital management

Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

Time value of money

Time Value of Money project

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!

Submit Assignment

User Account

All Pages