What is the expected return of each stock calculate the

Assignment Help Finance Basics
Reference no: EM13569348

1. Assume you have predicted the following returns for Stock A and B in four possible states of the economy.

What is the expected return of each stock? Calculate the variance and standard deviation for Stocks A and B.

State

Probability

Stock A Return

Stock B Return

Expansion

.15

22%

17%

Normal

.50

15%

12%

Mild Recession

.20

5%

2%

Recession

.15

1%

-2%

Please include step-by-step and formulas if you would like to be rated 5 star.

Reference no: EM13569348

Questions Cloud

If output rises to 64000 units what will the percentage : at an output level of 55000 units you calculate that the degree of operating leverage is 3.25. if output rises to
Stock a has an expected return of 1245 and the portfolio : you formed a portfolio consisting of two stocks. you invested 28 of your funds in stock a and 72 of your funds in
Equipment 6500 buildings 10000 long-term liabilities 4000 : here is the 1112 balance sheet of abc corporation cash 3500 accts payable 2950 accts rec 5700 accrued interest 156
If one of the stocks has a beta of 105 and the total : you own a portfolio equally invested in a risk-free asset and two stocks. if one of the stocks has a beta of 1.05 and
What is the expected return of each stock calculate the : 1. assume you have predicted the following returns for stock a and b in four possible states of the economy.what is the
What is the difference if any between schizophrenia and : topic moods disorders amp schizophreniaquestion what is the difference if any between schizophrenia and dissociative
What is the value of a 9-month call with a strike price of : what is the value of a 9-month call with a strike price of 45 given the black-scholes option pricing model and the
Earnhardt driving schools 2010 balance sheet showed net : earnhardt driving schools 2010 balance sheet showed net fixed assets of 3.4 million and the 2011 balance sheet showed
The long-term liability for deferred income taxes arises : the long-term liability for deferred income taxes arises because some book income will never be subject to income tax.

Reviews

Write a Review

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

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

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