What is the expected return on barbaras investment round

Assignment Help Finance Basics

Reference no: EM13620649

Barbara is considering investing in a stock and is aware that the return on that investment is particularly sensitive to how the economy is performing. Her analysis suggests that four states of the economy can affect the return on the investment. Using the table of returns and probabilities below, find

Probability Return

Boom 0.3 25.00%

Good 0.2 15.00%

Level 0.2 10.00%

Slump 0.3 -5.00%

a) What is the expected return on Barbara's investment? (Round answer to 3 decimal places, e.g. 0.076.) b. What is the standard deviation of the return on Barbara's investment.

Reference no: EM13620649

Questions Cloud

The following data were obtained from a survey of college : the following data were obtained from a survey of college students. the variablenbspxrepresents the number of

The speed of the electron is 00609c c speed of light equal : a long solenoid has 100 turnscm and carries current i. an electron moves within the solenoid in a circle of radius 2.28

What makes people successful and determine if there are : what makes people successful and determine if there are certain population parameters which predict success. since we

Miller is evaluating a plan to brew and market a new porter : miller is evaluating a plan to brew and market a new porter beer in europe. the new beer will be test marketed for 1

What is the expected return on barbaras investment round : barbara is considering investing in a stock and is aware that the return on that investment is particularly sensitive

A die is continuously rolled until the total sum of all : a die is continuously rolled until the total sum of all rolls exceeds 250. what is the probability that at least 70

Argon gas initially at 1 bar 100 k undergoes a polytropic : argon gas initially at 1 bar 100 k undergoes a polytropic process with n k to a final pressure of 15.59 bar. the work

A 150g plastic ball is dropped from a height of 260 m and : a 15.0g plastic ball is dropped from a height of 2.60 m and is moving at 2.80ms just before it hits the floor how much

What is the maximum number of passengers that can ride in : an elevator has mass 680kg not including passengers. the elevator is designed to ascend at constant speed a vertical

User Account

All Pages