Expected Return Compute the expected return given these three economic states, their likelihoods, and the potential returns: Economic StateProbabilityReturnFast Growth .2 30.8%Slow Growth .5 6.40%Recession .3 -2.40%

Formula: Expected rate of return = (Expected rate of return in Fast Economic growth X Probability of…

Answered: Expected Return Compute the expected…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Expected Return Compute the expected return given these three economic states, their likelihoods, and the potential returns: Economic State Probability Return Fast Growth .2 30.9 % Slow Growth .4 6.45 % Recession .4 -2.45 % A. 9.9% B. 9.7% C. 7.8% D. 17.5%
Computer the expected return given these three economic states, their likelihoods, and the potential returns. Economic State Probability Return Fast Growth 0.40 25% Slow Growth 0.55 12% Recession 0.05 -50% Multiple Choice ___ -4.3 percent ___ 14.1 percent ___ 19.1 percent ___ 29.0 percent
Compute the expected return given these three economic states, their likelihoods, and the potential returns: Economic State Probability Return Fast Growth 0.3 40% Slow Growth 0.4 15% Recession 0.3 -15% Multiple Choice ___ 13.5 percent ___ 22.5 percent ___ 18.30 percent ___ 40.0 percent
Compute the expected return given these three economic states, their likelihoods, and the potential returns: (Round your answer to 2 decimal places.) Economic State Probability Return Fast growth 0.29 30 % Slow growth 0.41 3 Recession 0.30 –27 Expected return %
Expected Return: Please compute the expected return given these three economic states, their likelihoods, and the potential returns: Economic State Probability Return Boom 10% 30% Growth 40% 15% Stagnation 30% 0% Recession 20% -25%
Consider the following information: State ofEconomy Probability ofState of Economy Rate of Returnif State Occurs Recession .37 −.11 Boom .63 .23 Calculate the expected return.
H3. Compute the standard deviation of the expected return given these three economic states, their likelihoods, and the potential returns: Economic State Probability Return Fast Growth 0.2 30% Slow Growth 0.5 6% Recession 0.3 −2% Please show proper step by step calculation
Based on the following information, what is the standard deviation of returns? State of Economy Probability of State of Economy Rate of Return if State Occurs Recession .22 −.090 Normal .47 .105 Boom .31 .215
Q2 Following are four economic states, their likelihoods, and the potential returns: Economic State Probability Return Fast growth 0.30 60 % Slow growth 0.50 13 Recession 0.15 –15 Depression 0.05 -45 Compute the expected return and standard deviation. (Round your answers to 2 decimal places.) EXPECTED RETURN % STANDARD DEVIATION. %
Based on the following information, what is the standard deviation of returns? State of Economy Probability of Stateof Economy Rate of Return ifState Occurs Recession .28 − .096 Normal .41 .111 Boom .31 .221
Consider the following information: State ofEconomy Probability of Stateof Economy Rate of Returnif State Occurs Recession .21 –.13 Normal .49 .15 Boom .30 .34 Calculate the expected return.
The following information showed:State of the Economy Probability of the States % of ReturnsStrong Economic Growth 20% 13%Moderate Economic Growth 55% 10%Economic Recession 25% 5%What is the standard deviation?a.2.76%b.4.68%c.5.52%d.8.00%

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Economic State	Probability	Return
Fast Growth		.2	30.8	%
Slow Growth		.5	6.40	%
Recession		.3	-2.40	%

Expected Return Compute the expected return given these three economic states, their likelihoods, and the potential returns: Economic State Probability Return Fast Growth .2 30.8 % Slow Growth .5 6.40 % Recession .3 -2.40 %