Answers
state of economy rate of return if state occurs Stock A stock B Stock C 0.06 0.14 0.34 0.10 0.02 -0.70 weighted return (weight x return) Stock A Stock B Stock C 2.000% 4.667% 11.333% 3.333% 0.667% -23.333% Boom Bust weighted sum probability expected return (sum of weighted return) 18.000% 0.55 9.90% -19.333% 0.45 -8.70% 1.20% Weight 33.33% 33.33% 33.33% Answer: Expected return = 1.20% [if equally weighted]
state of economy deviation “2x probability rate of return if state occurs Stock A Stock B Stock C 0.06 0.14 0.34 0.10 0.02 -0.70 weighted return (weight x return) weighted sum probability expected return Stock A Stock B Stock C l(sum of weighted return) 1.320% 3.080% 19.040% 23.440% 0.55 12.89% 2.200% 0.440% -39.200% -36.560% 0.45 -16.45% -3.56% deviation (weighted return- deviation^2 expected return) 27.000% 7.290000% -33.000% 10.890000% Boom Bust 0.040095000 0.04900500 Weight 22.00% 22.00% 56.00% Variance Standard deviation = variance10.5 0.08910 29.85% Answer: Variance 0.089100 [weighted not equally]
.
Similar Solved Questions
1 answer
A hundred players are participating in this game (N = 100). Each player has to choose...
A hundred players are participating in this game (N = 100). Each player has to choose an integer between 1 and 100 in order to guess “5/6 of the average of the responses given by all players”. Each player who guesses the integer closest to the 5/6 of the average of all the responses, win...
1 answer
Non-Constant Growth Valuation: Divining Rod Water Resources Corp (DRWR) has experienced rapid growth that is expected...
Non-Constant Growth Valuation: Divining Rod Water Resources Corp (DRWR) has experienced rapid growth that is expected to continue for the next several years. Specifically, high growth of 30% for the next three years, followed by constant growth of 6% thereafter is expected. The most recent dividend ...
1 answer
For the year of 2020, Delana Corporation, a calendar year corporation, had the following Income and...
For the year of 2020, Delana Corporation, a calendar year corporation, had the following Income and Expenses: Gross Income (Revenues) From Operations - $600,000; Expenses From Operations - $720,000; Dividends Received (Less than twenty percent (20%) owned domestic corporation) - $180,000. Delana Cor...
1 answer
Can you pharaphrase this please ! Thank you! "if two firms, Firms A and B, are...
Can you pharaphrase this please ! Thank you! "if two firms, Firms A and B, are identical in all respects except that firm A supplies one more hour of job training for workers than firm B does, by how much would firm A’s output differ from firm B’s?"...
1 answer
Solve this question with explaination. Chapter 3 - Job Cost Transactions Your vase and pot company...
Solve this question with explaination. Chapter 3 - Job Cost Transactions Your vase and pot company has the following transactions during the month Record the journal entries. Purchased $18,000 of materials for production on account. Requisitioned $12,000 of direct materials and $3,500 of indire...
1 answer
For the following set of data, please find the mode, median, standard deviation a t-test: FEMALES: 1 Time: 225.620 Reaction: 0.262 2 Time: 400.040 Reaction: 0.234 3 Time: 469.160 Reaction: 0.199 4 Ti...
For the following set of data, please find the mode, median, standard deviation a t-test: FEMALES: 1 Time: 225.620 Reaction: 0.262 2 Time: 400.040 Reaction: 0.234 3 Time: 469.160 Reaction: 0.199 4 Time: 386.390 Reaction: 0.259 5 Time: 345.540 Reaction: 0.243 6 Time: 351.880 Reaction: 0.301 7 Time: ...
1 answer
What is one way a financial crisis can start? financial liberalization debt deflation currency manipulation a...
What is one way a financial crisis can start? financial liberalization debt deflation currency manipulation a banking crisis...
1 answer
QUESTION 3 Analyzing the investment problem shown below, one advisor recommended buying a combination of investments...
QUESTION 3 Analyzing the investment problem shown below, one advisor recommended buying a combination of investments 2 3. and 6... Input data on potential investments Investment 2 3 4 5 6 Year 1 cost $5,000 $2,500 $3,500 $6,500 $7,000 $4,500 $3,000 Year 2 cost $2,000 $1,500 $2,000 50 $500 $1,500 $0 ...
2 answers
If you are riding a bicycle and apply the brakes, but you are still moving forward,...
If you are riding a bicycle and apply the brakes, but you are still moving forward, in what direction does the angular momentum of the front tire point? Answer is Left but Why?...
1 answer
Question 6 (0.1 points) A recommended way to staff your WHP program is to O Provide...
Question 6 (0.1 points) A recommended way to staff your WHP program is to O Provide internships to qualified students Hire local vendors All of the answers are correct Recruit friends and family 2 of the answers are correct han aa NEW...
1 answer
P Exercise 1-7 Direct and Indirect Costs [LO1-1) Kubin Company's relevant range of production is 18,000...
p Exercise 1-7 Direct and Indirect Costs [LO1-1) Kubin Company's relevant range of production is 18,000 to 22,000 units. When it produces and sells 20,000 units, its average costs per unit are as follows: Average Cost per Unit $7.00 $4.00 $1.50 Direct materials Direct labor Variable manufacturin...
1 answer
Given the probability p=0.84 that an event will not happen, how do you find the probability that the event will happen?
Given the probability p=0.84 that an event will not happen, how do you find the probability that the event will happen?...
1 answer
Thermodynamics points) Design a Gas Turbine Brayton Cycle Power Plant which can also be assumed to...
Thermodynamics points) Design a Gas Turbine Brayton Cycle Power Plant which can also be assumed to serve as the main propulsion unit of a Naval Vessel yielding in an optimum thermal efficiency Utilise three stages of compression with intercooling.three stages of expansion with reheating,and regenera...
1 answer
Solve the following exponential equation Please show every step, thank you!
Solve the following exponential equation Please show every step, thank you!...
1 answer
You inherit $10K when you are 20. What is this worth when you are ready to...
You inherit $10K when you are 20. What is this worth when you are ready to retire at 65? Assume that the money can be invested at 7%, which is your interest rate for the time value of money. Compare this with an insurance policy that could be purchased with a lump-sum payment of $10K. That policy wo...