How I can calculate the standard deviations of each of the two differentassets?

Q: Define standard deviation

A: It refers to the variation in the actual observations from the average. Z-Score helps to know how…

Q: What is an acceptable current ratio?

A: Definition: Ratio analysis: It is the financial analysis tool for measuring the profitability,…

Q: What is the expected return? What is the variance? What is the standard deviation?

A: State Probability Returns       Boom 0.25 0.15 Normal 0.50 0.08 Slow down 0.15 0.04…

Q: Calculate: - Standard Deviation - Beta  - Covariance

A: Risk means possibility that results of uncertain events will be different from the expected results.…

Q: Describe in words how an NPV profile is constructed. How do you determine the intercepts for the x…

A: NPV profile means the graph which depicts the Net present value of the project at various discount…

Q: calculate the standard deviation of returns.

A: Standard Deviation is the square root of the variance, which is the measurement of risk. And risk…

Q: Calculate the following and determine if variances are favorable

A: Compute the total standard material cost.

Q: Assume the mean and standard deviation of sample returns are​ 8% and​ 10% respectively. Assuming…

A: Sample returns are 8% Standard deviation is 10% Returns are normally distributed To Find:…

Q: Consider the data scores 8, 9, 13, 20, and 25. Solve for the Range, Mean, Standard Deviation and…

A: The range, mean, standard deviation and variance are the terms used to analyse the nature of the…

Q: The variance and its square root, the standard deviation, are the most commonly used measures of…

A: Variance refers to the expectation of squared deviation of a random value from its arithmetic mean.…

Q: What is the difference between between beta and standard deviatio

A: In the world of finance in general and investing in particular we often use the concepts of beta as…

Q: How do we calculate the current ratio?

A: Current ratio: Current ratio categorized under liquidity ratio which is helps to know the liquidity…

Q: b) Calculate the variance and standard deviation.

A: Calculation of expected return Probability Return Expected return A B C=A*B 30% -13% -3.90%…

Q: The ________ is used to compare thevariability of two or more data sets with different scales.…

A: Coefficient of variation: The coefficient of variation is considered as a statistical measure that…

Q: What type of risk is measured by the standard deviation?

A: Standard deviation is the measure of risk that the actual return of an investment will deviate from…

Q: What would be the expected value, variance and standard deviation of an event that always took the…

A: Expected value :- Expected value is anticipated future value of an event.  Standard Deviation:-…

Q: Show that the lower semi-standard deviation corrected expectation has properties (UT) und (UC)

A: Semi-deviation is an alternative to standard deviation for determining the degree of risk associated…

Q: Explain the concept of iso-expected return lines, iso-variance ellipses, and the critical line and…

A: Minimum variance frontier: It is a frontier that identifies those portfolios that have a minimum…

Q: Write down two possible causes for each variance.

A: Variance refers to the differs between the budgeted and actual. It may be favourable and…

Q: What is Altman's Z-score and what does it tell you?

A: The Altman Z Score is utilized to forecast the probability that a business will go bankrupt inside…

Q: Which of the following is not a characteristic of the standard normal distribution? It's neither…

A: Standard deviation is the variation that exists from the average mean. It is calculated by taking…

Q: Can someone give an example of Mean-Variance analysis?

A: Example for mean-variance analysis:

Q: The standard deviation of.alt=”f$ar{X},f$ “> is usually called the A.standard error of the sample…

A: B.randomized standard error

Q: The regression line in a scatterplot is also known as a(n): O A. R-squared line. O B. high-low line.…

A: A regression line seems to be a line that is used to define how a set of data behaves. In other…

Q: Can someone give an example or scenario of mean-variance analysis?

A: Introduction: Mean-variance analysis is a method used by investors to make investment decisions on…

Q: What are the differences and similarities between the Sharpe and Treynor measures?

A: Each asset or portfolio has a separate level of return and associated risk in response to the…

Q: What was the correlation between both return series?

A: Answer: Introduction: A linear correlation measure between two variables that is, An independent of…

Q: Compute for the Standard Deviation:

A: Standard deviation is the variation in returns from the mean value. Standard deviation SD =…

Q: How can we determine the mean and variance of the NPW on the basis of the three NPW estimates?

A: Identify the Rate, project life. Then Identify the cash flows. Compute the Present worth and net…

Q: What are the two major types of tests that have been performed totest the validity of the CAPM?…

A: Two major types of tests performed for the validity of CAPM : 1. Black, Jensen and scholes test,…

Q: Determine the median and the values corresponding to the first and third quartiles in the fol-…

A:

Q: the standard deviation for part c are all wrong. could you please check it again?

A:

Q: What is the difference between the current ratio and the quick ratio?

A: Ratio analysis is a method of measuring the financial position of the organization with different…

Q: Which of the following indicates that two variables tend to move in the same direction? a.negative…

A: Negative covariance means that the returns move in opposite direction. So, Option a is incorrect.…

Q: the formula for the correlation statistic is?

A: Correlation: Correlation is a statistical method that can display whether and just how strongly…

Q: d the (a) variance and (b) standard deviation

A:

Q: The correlation of two variables will be Group of answer choices a. Between -1 and +1, inclusive b.…

A: The correlation coefficient is a statistical measure.

Q: Explain how you find the portion of the mean-variance-frontier that is the efficient frontier and…

A: There are two parts of portfolio one is return and another is risk.

Risk and return

Before understanding the concept of Risk and Return in Financial Management, understanding the two-concept Risk and return individually is necessary. 

Capital Asset Pricing Model

Capital asset pricing model, also known as CAPM, shows the relationship between the expected return of the investment and the market at risk. This concept is basically used particularly in the case of stocks or shares. It is also used across finance for pricing assets that have higher risk identity and for evaluating the expected returns for the assets given the risk of those assets and also the cost of capital.