Consider the information below, compute the expected return, variance, and standard deviation. Show the solution. Probability Return of Assets 25% .30 25% .050 25% .100 25% .280
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Consider the information below, compute the expected return, variance, and standard deviation. Show the solution.
|
Probability |
Return of Assets |
|
25% |
.30 |
|
25% |
.050 |
|
25% |
.100 |
|
25% |
.280 |
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- Consider two assets with expected return R1=0.22,R2=0.55and variance are s1=0.80, s2=0.88 and r12=0.55 respectively.A portifolio with weights W1=0.25 and W2= 0.65 is formed calculate the expected return and variance of the portifolioThe variance of returns for a risky asset is 45%. The variance of the error term, Var(e) is 25%. What portion of the total risk of the asset, as measured by variance, is SYSTEMATIC? (Hint: Answer is a %.)1. Calculate the Expected Return and Risk measured in terms of standard deviation and Variance relating to the following information of a Investment avenue: Return in Percentage: -15-10-5+5+10+15 Probability:.10.15.20.20.25.10
- Calculate the range, the expected rate of return, the variance, and the standard deviation for the problem below: Economic Condition Probability Expected Return Better than expected 0.15 0.65 Good 0.25 0.3 Average 0.45 0.15 Poor 0.1 -0.15 Terrible 0.05 -0.35The returns on assets C and D are strongly correlated with a correlation coefficient of 0.80. The variance of returns on C is 0.0009, and the variance of returns on D is 0.0036. What is the covariance of returns on C and D? Give typing answer with explanation and conclusionCompute the expected return, variance, and standard deviation of the following assets. Show the solutions Probability Return of Assets Asset A Asset B Asset C 25% .030 .030 -.030 25% .050 .180 .280 25% .100 .080 -.180 25% .280 -.050 -0.180 Expected Return Variance Standard Deviation
- Four assets have the following distribution of returns. Probability Rate of return (%)Occurrence A B C D0.1 10.0 6.0 14.0 2.00.2 10.0 8.0 12.0 6.00.4 10.0 10.0 10.0 9.00.2 10.0 12.0 8.0 15.00.1 10.0 14.0 6.0 20.0 In each asset alculate The expected rate of return, standard deviation, variance coefficient of variationEXAMPLE• Consider the following information:State Probability ABC, Inc. ReturnBoom .25 0.15Normal .50 0.08Slowdown .15 0.04Recession .10 -0.03• What is the expected return?• What is the variance?• What is the standard deviation?If correlation coefficient between an individual security and market is 0.64, the total risk of the security that is standard deviation is 30 %, unsystematic risk of the security in variance term is a. 531.36 b. 900 c. 640 d. 360
- Evaluating Stand-Alone Risk: Example 9-4, (page 411) Conestoga Ltd. has the following estimated probability distribution of returns. Return Probability 4% .20 12% .50 14% .30 Calculate Conestoga’s expected return, the variance and standard deviation of its expected return and the return’s coefficient of variation. Please explain to me in detail how the variance of returns is obtained. I don't understand the equation used to get the answer.Consider Microsoft Corporation (MSFT) and Meta Platforms, Inc. (META) that have returns variances of 6.25% and 3.24%, respectively. Calculate the standard deviation of portfolio returns for an equal-weighted portfolio of the two assets when their correlation of returns is 0. A. 24.71% B. 19.20% C. 15.40% D. 10.28%Assuming that the rates of return associated with a given asset investment are normally distributed; that the expected return, r, is 18.7%; and that the coefficient of variation, CV, is 1.88, answer the following questions: a. Find the standard deviation of returns, sigma Subscript rσr. b. Calculate the range of expected return outcomes associated with the following probabilities of occurrence: (1) 68%, (2) 95%, (3) 99%.