Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

xpected Return: Discrete Distribution A stock's return has the following distribution: Demand for the Company's Products Probability of This Demand Occurring Rate of Return if

xpected Return: Discrete Distribution

A stock's return has the following distribution:

Demand for the Company's Products Probability of This Demand Occurring Rate of Return if This Demand Occurs (%)
Weak 0.1 -25 %
Below average 0.2 -9
Average 0.4 16
Above average 0.2 30
Strong 0.1 75
1.0

Calculate the stocks expected return and standard deviation. Do not round intermediate calculations. Round your answers to two decimal places.

Expected return: %

Standard deviation: %

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 Planning & Analysis And Performance Management

Authors: Jack Alexander

1st Edition

1119491487, 9781119491484

More Books

Students also viewed these Finance questions

Question

How did World War II shape Anna Freuds research and thought?

Answered: 1 week ago

Question

differentiate the function ( x + 1 ) / ( x ^ 3 + x - 6 )

Answered: 1 week ago

Question

Explain global human resource management.

Answered: 1 week ago

Question

Describe the grievance procedure in a union environment.

Answered: 1 week ago

Question

Discuss whistleblower protection under OSHA.

Answered: 1 week ago