Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

2. Analysts predict that over the next year, Thete, Inc.'s common stock has a 20% chance of returning 6%, a 50% chance of returning 15%,

image text in transcribed
2. Analysts predict that over the next year, Thete, Inc.'s common stock has a 20% chance of returning 6%, a 50% chance of returning 15%, and a 30% chance of returning 24%. What is the expected rate of return on Thete, Inc.'s common stock? Submit your answer as a percentage and round to two decimal places. Expected return = (0.20*0.06) +(0.50*0.15) +0.30*0.24) = 15.9% 3. Analysts predict that over the next year, Thete, Inc.'s common stock has a 20% chance of returning 6%, a 50% chance of returning 15%, and a 30% chance of returning 24%. What is the standard deviation of returns on Thete, Inc.'s common stock? Submit your answer as a percentage and round to two decimal places

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Markets And Institutions

Authors: Jeff Madura

13th Edition

0357130790, 978-0357130797

More Books

Students also viewed these Finance questions

Question

Problem: Evaluate the integral: I = 1- 1 dx 9

Answered: 1 week ago

Question

Describe the Indian constitution and political system.

Answered: 1 week ago

Question

Explain in detail the developing and developed economy of India

Answered: 1 week ago

Question

Problem: Evaluate the integral: I = X 52+7 - 1)(x+2) dx

Answered: 1 week ago