The variance of the returns on rt inc. stock, Financial Econometrics

Assignment Help:

Question

If the economy booms, RTF, Inc. stock is expected to return 10%. If the economy goes into a recessionary period, then RTF is expected to only return 4%. The probability of a boom is 60% while the probability of a recession is 40%. What is the variance of the returns on RTF, Inc. stock?


Related Discussions:- The variance of the returns on rt inc. stock

Chapter , a debit is used to record

a debit is used to record

What do you meant by overtrading, Q. What do you meant by Overtrading? ...

Q. What do you meant by Overtrading? When a company is trading large volumes of sales very quickly, it may also be generating large amounts of credit sales and consequently lar

Working capital cycle in a manufacturing business, Working capital cycle in...

Working capital cycle in a manufacturing business Average time raw materials are in stock   +   Time taken to produce goods   +   Time tak

What are the main causes of inflation, Question 1: "When inflation twic...

Question 1: "When inflation twice surged to double digit level in the mid and late seventies, American named it public enemy number one." a) What are the main causes of in

Investors short sell, Pythagoras Jones has just inherited $1,000,000 and wi...

Pythagoras Jones has just inherited $1,000,000 and wishes to invest this sum in the ?ve funds given below. Fund     Name                                Code               Return

Differences in working capital for different industries, Differences in wor...

Differences in working capital for different industries   Manufacturing Retail Service Inventories Hig

Federal Reserve Board website., #Identify at least five key pieces of data ...

#Identify at least five key pieces of data you would use in microeconomic decision making on the Web site.

Determine the time zero value of the swap, You have been provided with the ...

You have been provided with the following information on a fixed-fixed USD-GBP currency swap, thespot exchange rate between USD and GBP, and the USD and GBP yield curves:

Show the symptoms of overtrading, Q. Show the Symptoms of overtrading? ...

Q. Show the Symptoms of overtrading? Symptoms of overtrading • Fast sales growth. • Increasing trade payables. • Increasing trade receivables. • Fall in cash bal

Quantitative methods, a rural population (given in thousands) is thought to...

a rural population (given in thousands) is thought to decline according to the equation p=15e^(-0.1t). if t=0 at the beginning of 1998. calculate the numbers in the population at t

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd