CНАРTER 8P8-1 Expected Return Given these three economic states, their likelihoods, and thepotential returns, compute the expected return, standard deviation and coefficient ofvariation:EconomicProbability ReturnStateFast Growth0.1050%Slow Growth0.8015%Recession0.10-30%

The expected return is the average return considering the different probabilities of different…

Answered: P8-1 Expected Return Given these three…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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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
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. %
Q25 Following are three economic states, their likelihoods, and the potential returns: Economic State Probability Return Fast growth 0.3 40 % Slow growth 0.4 10 Recession 0.3 –25 Determine the standard deviation of the expected return. (Do not round intermediate calculations and round your answer to 2 decimal places.) STANDARD DEVIATION. %
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
11.6 Calculating Returns and Standard Deviations Based on the following information, calculate the expected return and standard deviation: State of Economy Probability of SE Rate of Return If State Occurs Depression .15 -.148 Recession .30 .031 Normal .45 .162 Boom .10 .348
Problem 10-17 Expected Return Risk (LG10-1)Following are three economic states, their likelihoods, and the potential returns:Economic State Probability Return Fast growth 0.3 40 % Slow growth 0.4 10 Recession 0.3 –25 ________________________________________Determine the standard deviation of the expected return. (Do not round intermediate calculations and round your answer to 2 decimal places.)
Calculating Returns and Standard Deviations Based on the following information, calculate the expected return andstandard deviation: State of Economy Probability of State of Economy Rate of Return if State Occurs Depression .15 -.148 Recession .30 .031 Normal .45 .162 Boom .10 .348
Consider the following information: State ofEconomy Probability ofState of Economy Rate of Returnif State Occurs Recession .44 −.13 Boom .56 .25 Calculate the expected return. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Consider the following information: State ofEconomy Probability of Stateof Economy Rate of Returnif State Occurs   Recession .21             –.12             Normal .48             .14             Boom .31             .33           Calculate the expected return. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
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%
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.

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P8-1 Expected Return Given these three economic states, their likelihoods, ane potential returns, compute the expected return, standard deviation and coefficien variation: Economic Probability Return State Fast Growth Slow Growth 0.10 50% 0.80 15% Recession 0.10 -30%