Compute the for stocks, There is a 43.67% probability of a

Compute the for stocks

Assignment Help Financial Management

Reference no: EM132016022

There is a 43.67% probability of a below-average economy and a 56.33% probability of an average economy. If there is a below-average economy, Stocks A and B will have returns of 0.49% and -3.49% , respectively. If there is an average economy, Stocks A and B will have returns of 12.57% and 6.08%, respectively.

Compute the following for Stocks A and B:

a) Stock A Expected Return :

b) Stock B Expected Return :

c) Stock A Standard Deviation :

d) Stock B Standard Deviation :

Reference no: EM132016022

Questions Cloud

What is the beta of portfolio : You are invested 38.40% in growth stocks with a beta of 1.974, 37.80% in value stocks with a beta of 0.955, What is the beta of your portfolio?

Required return for stock and expected return for stock : Calculate the Required return for this stock, Expected return for this stock.

Calculate the required return and expected return for stock : Calculate the required return and expected return for this stock. What is the beta of your portfolio?

Compute the market reward-to-risk ratio : Compute the Market's reward-to-risk ratio and Stock Z's reward-to-risk ratio.

Compute the for stocks : There is a 43.67% probability of a below-average economy and a 56.33% probability of an average economy. Compute the following for Stocks A and B:

What is the expected return for two stock portfolio : What is the expected return for this two stock portfolio?

Calculate the price at which each ordinary share : Calculate the price at which each ordinary share was issued in the current year. Calculate the total asset value of Diraster as at 31 January 2010.

What is the stock geometric average return : A stock has monthly returns of -2.89% , -6.03% , -8.20% , and 10.90%. What is the stock’s geometric average return?

Compute the for magnetic corporation common stock : Magnetic Corporation expects dividends to grow at a rate of 13.82% for the next two years. Compute the following for Magnetic Corporation’s common stock:

User Account

All Pages