Question
Solve the quantitative tasks below using Python please solve the task using python and answer the tasks seperately. 1. Given the information below, what is
Solve the quantitative tasks below using Python
please solve the task using python and answer the tasks seperately.
1. Given the information below, what is the expected return for Stock A?
Economic State | Probability | Returns for Stock A |
Recessionary | 0.40 | 10% |
Expansionary | 0.60 | 23% |
2. Given the information below, what is the standard deviation of expected return for Stock A?
Economic State | Probability | Returns for Stock A |
Recessionary | 0.25 | -4% |
Expansionary | 0.75 | 29% |
3. Given the information below, what is the standard deviation of the expected returns of the portfolio made up of 40% of Stock A and 60% of Stock B?
Economic State | Probability | Stock A | Stock B |
Recessionary | 0.35 | 12% | 2% |
Expansionary | 0.65 | 5% | 22% |
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4. Which stock has a larger standard deviation of returns?
Year | Stock X | Stock Y |
20Y2 | 15% | 14% |
20Y1 | 18% | 17% |
20Y0 | 8% | 4% |
20X9 | -4% | 19% |
20X8 | 31% | 8% |
a.Stock X b.Stock Y |
5. Given the information below, what is the standard deviation of the expected returns for Stock Z?
Economic State | Probability | Returns for Stock Z |
Recessionary | 0.25 | 3% |
Normal | 0.35 | 16% |
Expansionary | 0.40 | 26% |
6. Given the information below, what is the expected return of the portfolio made up of 25% of stock A, 35% of stock B, and 40% of stock C?
Economic State | Probability | Stock A | Stock B | Stock C |
Recessionary | 0.33 | 10% | 15% | -4% |
Expansionary | 0.67 | 8% | -2% | 28% |
7. Which stock has a larger standard deviation of returns?
Year | Stock A | Stock B |
20Y2 | 12% | 21% |
20Y1 | 14% | 15% |
20Y0 | 15% | 19% |
20X9 | 9% | -3% |
20X8 | 2% | -2% |
a.Stock A b.Stock B |
8. Suppose returns over the last three years were 13%, 12%, and 10%. If the mean return over the past four years was 7%, what was the return four years ago?
9.
Given the information below, what is the standard deviation of the expected returns of the portfolio made up of 25% of stock A, 35% of stock B, and 40% of stock C?
Economic State | Probability | Stock A | Stock B | Stock C |
Recessionary | 0.33 | 10% | 15% | -4% |
Expansionary | 0.67 | 8% | -2% | 28% |
10. Given the information below, what is the standard deviation of the expected returns of the portfolio made up of 25% of stock A, 35% of stock B, and 40% of stock C?
Economic State | Probability | Stock A | Stock B | Stock C |
Recessionary | 0.33 | 10% | 15% | -4% |
Expansionary | 0.67 | 8% | -2% | 28% |
11. Given the information below, what is the standard deviation of expected return for Stock X?
Economic State | Probability | Returns for Stock X |
Recessionary | 0.15 | -4% |
Normal | 0.60 | 12% |
Expansionary | 0.25 | 21% |
12. Given the information below, what is the expected return for Stock Z?
Economic State | Probability | Returns for Stock Z |
Recessionary | 0.25 | 3% |
Normal | 0.35 | 16% |
Expansionary | 0.40 | 26% |
13. Suppose returns over the last four years were 15%, 12%, 27%, and 21%. If the mean return over the past five years was 20%, what was the return five years ago?
14.Suppose returns over the last three years were 12%, 13%, and 11%. What is the standard deviation of these returns?
15. Given the information below, what is the expected return for Stock X?
Economic State | Probability | Returns for Stock X |
Recessionary | 0.15 | -4% |
Normal | 0.60 | 12% |
Expansionary | 0.25 | 21% |
16. Suppose the variance of the independent variable is 2.5 and the covariance between the dependent variable and independent variable is 1. What is the slope of this regression line?
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