Security returns-calculate the standard deviations

Assignment Help Financial Management

Reference no: EM131130678

Security Returns If State Occurs State of Economy Probability of State of Economy Roll Ross Bust .20 –18 % 21 % Boom .80 18 6 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 .20 Boom .80 σ2 = Ross Bust .20 Boom .80 σ2 = Standard Deviations Roll % Ross %

Reference no: EM131130678

Questions Cloud

Independent visitors to a certain web site : Independent visitors to a certain Web site (having infinite capacity) arrive according to a Poisson process with rate λ = 30 per minute. The time that a given visitor spends on the site in question is an exponential random variable with mean equal..

What can be gained through analyzing film : How has this changed the way you view movies - How are you able to use film theory and criticism to find and interpret meaning in movies?

Draw a rune line depicting all of the cash flows associated : Draw a rune line depicting all of the cash flows associated with Sunrise's view of the retirement annuity. How large a sum must Sunrise accumulate by the end of year 12 to provide the 20-year, $42,000 annuity?

What issues could arise when a panicked public believes : What issues could arise when a panicked public believes it has been exposed, or has been exposed, to an element that may require decontamination?

Security returns-calculate the standard deviations : Security Returns If State Occurs State of Economy Probability of State of Economy Roll Ross Bust .20 –18 % 21 % Boom .80 18 6 Calculate the standard deviations for Roll and Ross by filling in the following table (verify your answer using returns expr..

Composed of two components that operate at alternate times : (a) Let Ni be the number of consecutive days during which component I is responsible for the functioning of the system, for i = 1,2. What is the probability distribution of ?

A woman makes long-distance calls with the help : A woman makes long-distance calls with the help of her cell phone according to a Poisson process with rate λ. Suppose that for each long-distance call billed, the next call is free and that we fix the origin at the moment when a call has just been..

Government requirements imposed on public corporation : What are some of the government requirements imposed on a public corporation that are not imposed on a private, closely held corporation? Discuss pros and cons of each.

Prepare the journal entry to record the payment of interest : Prepare the journal entry to record the payment of interest and the amortization of the discount on July 1, 2011, assuming that interest was not accrued on June 30.

User Account

All Pages