What is the expected return on barbara investment

Reference no: EM13263600

Barbara is considering investing in a stock and is aware that the return on that investment is particularly sensitive to how the economy is performing. Her analysis suggests that four states of the economy can affect the return on the investment. Using the table of returns and probabilities below find:

1) What is the expected return on Barbara's investment?

2) What is the standard deviation of the return on Barbara's investment?

Probability Return

Boom 0.3 25.00%

Good 0.2 15.00%

Level 0.3 10.00%

Slump 0.2 -5.00%

Reference no: EM13263600

Questions Cloud

Overview of major works of art : Project will allow you to explore the wealth of excellent online resources available to art history students. Since your textbook includes only an overview of major works of art and art historical issues

What is the holding period return of the baseball card : Another company, Bohenick Classis Automobiles restores and rebuilds old classic cars. This company purchase and restored a classic 1957 Thunderbird convertible 7 years ago for $9,300.00. Today at auction, the car sold for $102,300.00.

What is the difference in energy of the system : A woman with mass 50 kg stands at the rim of a large disk rotating at 0.5 rev/s about its center axis. What is the difference in energy of the system

Sketch root locus of system as k changes from 0 to infinity : Consider a unity feedback system with open loop transfer function G(s) (a) sketch the root locus of the system as k changes from zero to infinity. (b) if a series compensator with a transfer function (s+2) is inserted in the above loop, sketch the ..

What is the expected return on barbara investment : Barbara is considering investing in a stock and is aware that the return on that investment is particularly sensitive to how the economy is performing. Her analysis suggests that four states of the economy can affect the return on the investment.

What is the magnitude of the buoyant force on each person : A helium balloon ride lifts up passengers in a basket. Assume the density of air is 1.28 kg/m3 and the density of helium in the balloon is 0.18 kg/m3. What is the magnitude of the buoyant force on each person

What is the difference in calculation : What is the difference between a compound annuity and a single investment that has an annuity? What is the difference in calculation?

Determine what is the smallest voltage increment : Digital Communication Techniques. A D/A converter has a 12-bit binary input. The output analog voltage range is 0 to 5 V. How many discrete output voltage increments are there and what is the smallest voltage increment

What is its horizontal displacement from the launch point : At time t = 0, a projectile is launched from ground level. At t = 2.00 s, it is displaced d = 56 m horizontally, what is its horizontal displacement D from the launch point

User Account

All Pages