) The following questions are based on the given information from table of probabilitydistributions of returns on investment individual shares and portfolio below:Table 3: Probability distributions of returns on investment for individual shares andportfolio.State of Probabilityof theStatesReturn onShare AReturn onShare B(rB)Return on Portfolio AB(ran)Economy(ra)0.200.200.200.200.2015%-5%5%35%25%-5%15%25%5%35%5%5%15%20%30%-234 Given:Expected return Share A(fa)Expected return Share B (fB)Expected return Portfolio A and B (faB)15%15%15%By using the above information, demonstrate the rate of risk (variance and standarddéviation) for each of:(i)Share A[Saham A](ii)Share B[Saham B](iii) Portfolio A and B[Portfolio A dan BỊI| ||||

Variance is calculated by using following formula: Variance =∑Prob×Return -Expected Return2 Standard…

The following questions are based on the given information from table of probability distributions of returns on investment individual shares and portfolio below: Table 3: Probability distributions of returns on investment for individual shares and portfolio.

The following questions are based on the given information from table of probability distributions of returns on investment individual shares and portfolio below: Table 3: Probability distributions of returns on investment for individual shares and portfolio.

Essentials of Business Analytics (MindTap Course List)

2nd Edition

ISBN:9781305627734

Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Chapter3: Data Visualization

Section: Chapter Questions

Problem 10P: The file Fortune500 contains data for profits and market capitalizations from a recent sample of...

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Concept explainers

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.

Question

Given:
Expected return Share A(fa)
Expected return Share B (fB)
Expected return Portfolio A and B (faB)
15%
15%
15%
By using the above information, demonstrate the rate of risk (variance and standard
déviation) for each of:
(i)
Share A
[Saham A]
(ii)
Share B
[Saham B]
(iii) Portfolio A and B
[Portfolio A dan BỊ
I| ||||

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