Calculate the return and standard deviation

Assignment Help Financial Management

Reference no: EM131818586

Calculate the return and standard deviation for the following stock, in an economy with five possible states. If a Boom (Probability=15%) economy occurs, then the expected return is 40%. If a Good (Probability=25%) economy occurs, then the expected return is 20%. If a Normal (Probability=30%) economy occurs, then the expected return is 12%. If a Bad (Probability=20%) economy occurs, then the expected return is 0%. If a Recession (Probability=10%) economy occurs, then the expected return is -15%. Show your work for partial credit.

Reference no: EM131818586

Questions Cloud

Discuss how many units should be produced in april : sales in April are expected to be 4,800 units, and sales in May are expected to be 9,000 units, how many units should be produced in April

What is the biological importance of s phase : What is the biological importance of S phase of the cell cycle? of M phase? Describe how errors are corrected in DNA.

How the adversarial versus partnership orientations work : The concept of business ecosystems implies that organizations are more interdependent than ever before. From personal experience, do you agree? Explain.

Draw and solve a decision tree for this problem : a. Draw and solve a decision tree for this problem b. Write your recommendation.

Calculate the return and standard deviation : Calculate the return and standard deviation for the following stock, in an economy with five possible states.

Describe any modern structure or sculpture or work of art : Discuss the primary reasons why popes and other patrons might allow such trappings of ancient pagan culture within a Christian society

How does research influence health policy decisions : How does research influence health policy decisions? What are the facilitating factors and barriers to the use of research in policy

How frequently does your company forecast : How frequently does your company forecast? Is there an annual budget cycle? How often is it revised and what elements are included?

Anticipate being ordered and evaluated : What diagnostic and laboratory testing would you anticipate being ordered and evaluated? Why?

User Account

All Pages