economy booms RTF, Inc stock is expected to return 13 percent. If the economy goes into a recessionary period, then RTF is expected to only return 4 percent. The probability of a boom is 80 percent while the probability of a recession is 20 percent. Wh
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If the economy booms RTF, Inc stock is expected to return 13 percent. If the economy goes into a recessionary period, then RTF is expected to only return 4 percent. The probability of a boom is 80 percent while the probability of a recession is 20 percent. What is the variance of the return on RTF, Inc stock?
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- If economy booms, RTF, Inc. stock is expected to return 11 percent. If the economy goes into a recessionary period, then RTF is expected to only return 3 percent. The probability of boom is 73 percent while the probability of a recession is 27 percent. What is the variance of the returns on RTF?If the economy booms, RTF, Incorporated, stock is expected to return 10 percent. If the economy goes into a recessionary period, then RTF is expected to only return 3 percent. The probability of a boom is 65 percent while the probability of a recession is 35 percent. What is the variance of the returns on RTF, Incorporated, stock?If the economy is normal, Charleston Freight stock is expected to return 16.5 percent. If the economy falls into a recession, the stock's return is projected at a negative 11.6 percent. The probability of a normal economy is 80 percent while the probability of a recession is 20 percent. What is the variance of the returns on this stock?
- The rate of return on the common stock of Kang Distribution is expected to be 13.5 percent in a boom economy, 8 percent in a normal economy, and only 2.5 percent in a recessionary economy. The probabilities of these economic states are 11 percent for a boom and 26 percent for a recession. What is the variance of the returns on this common stock?If the economy prospers, shares of Fitbit (ticker symbol: FIT) are expected to return 11%. But, if the economy falters, shares of Fitbit are expected to return 4%. According to equity analysts at Bank of America, over the next year, there is a 61% chance of an economic upturn and a 39% likelihood of an economic downturn. Given this information, Fitbit has a variance of returns equal to: a. 0.000273 b. 0.001544 c. 0.033819 d. 0.001166 e. 0.000827If the economy booms, Meyer&Co. stock will have a return of 20.9 percent. If the economy goes into a recession, the stock will have a loss of 13.2 percent. The probability of a boom is 62 percent while the probability of a recession is 38 percent. What is the standard deviation of the returns on the stock?
- The returns on the common stock of New Image Products are quite cyclical. In a boom economy, the stock is expected to return 32 percent in comparison to 14 percent in a normal economy and a negative 28 percent in a recessionary period. The probability of a recession is 25 percent while the probability of a boom is 20 percent. What is the standard deviation of the returns on this stock?Assume the economy has an 6 percent chance of booming, am 8 percent chance of being recessionary, and being normal the remainder of the time. A stock is expected to return 22.5 percent in a boom, 11.5 percent in a normal economy, and −8 percent in a recession. What is the expected rate of return on this stock?The stock of Tristar Bank will have a loss of 10.8 percent in a slow economy, a return of 10.6 percent in a normal economy, and a return of 24.5 percent in a fast-growing economy. There is 30 percent probability of a slow economy, 39 percent probability of a normal economy, and 31 percent probability of a fast-growing economy. What is the variance of the stock's returns?
- The common stock of Manchester & Moore is expected to earn 16.2 percent in a recession, 8 percent in a normal economy, and lose 3.5 percent in a booming economy. The probability of a boom is 18 percent while the probability of a recession is 7 percent. What is the expected rate of return on this stock?What is the variance on a stock that has expected rate of return of 18% in a boom economy, 8% in a normal economy, and 2% in a recession. The probability of these economies are 12% for a boom, 78% for a normal and 10% for a recession?You recently purchased a stock that is expected to earn 33 percent in a booming economy, 13 percent in a normal economy, and lose 40 percent in a recessionary economy. There is a 15 percent probability of a boom and a 60 percent chance of a normal economy. What is standard deviation on this stock?