Question
1) A stock has an expected return of15.10%and a standard deviation of13.19%. Compute the following for this stock: a) Upper range of 68% confindence interval
1) A stock has an expected return of15.10%and a standard deviation of13.19%. Compute the following for this stock: a) Upper range of 68% confindence interval : b) Lower range of 68% confindence interval : e) Upper range of 95% confindence interval : d) Lower range of 95% confindence interval : e) Upper range of 99% confindence interval : f) Lower range of 99% confindence interval :
2) There is a19.79%probability of a below-average economy and a80.21%probability of an average economy.If there is a below-average economy, Stocks A and B will have returns of-7.83%and-7.78% , respectively.If there is an average economy, Stocks A and B will have returns of4.22%and14.68%, respectively. Compute the following for Stocks A and B:
a) Stock A Expected Return :
b) Stock B Expected Return :
c) Stock A Standard Deviation :
d) Stock B Standard Deviation :
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