Question
Excel Online Structured Activity: Expected Returns: Discrete Distribution The market and Stock J have the following probability distributions: Probability r M r J 0.3 12.00
Excel Online Structured Activity: Expected Returns: Discrete Distribution
The market and Stock J have the following probability distributions:
| Probability | rM | rJ | ||
| 0.3 | 12.00 | % | 18.00 | % |
| 0.4 | 9.00 | 3.00 | ||
| 0.3 | 18.00 | 13.00 | ||
The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below.
Open spreadsheet
Calculate the expected rate of return for the market. Do not round intermediate calculations. Round your answer to two decimal places. fill in the blank % Calculate the expected rate of return for Stock J. Do not round intermediate calculations. Round your answer to two decimal places. fill in the blank %
Calculate the standard deviation for the market. Do not round intermediate calculations. Round your answer to two decimal places. fill in the blank % Calculate the standard deviation for Stock J. Do not round intermediate calculations. Round your answer to two decimal places. fill in the blank 5%
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Corporate Financial Management
Authors: Douglas R. Emery, John D. Finnerty, John D. Stowe
4th Edition
1935938002, 9781935938002
