Saturday
February 28, 2015

Homework Help: Finance

Posted by Margaret on Tuesday, June 4, 2013 at 11:58am.

Calculate the return and standard deviation for the following stock, in an economy with five possible states. If a Boom (Probability=25%) economy occurs, then the expected return is 30%. If a Good (Probability=25%) economy occurs, then the expected return is 15%. If a Normal (Probability=20%) economy occurs, then the expected return is 8%. If a Bad (Probability=20%) economy occurs, then the expected return is 5%. If a Recession (Probability=10%) economy occurs, then the expected return is -15%. Show your work for partial credit.

Answer this Question

First Name:
School Subject:
Answer:

Related Questions

math - It is equally probable that stock A will have a +10% or -10% rate of ...
BUSINESS MATH - : The Crescent Corporation just paid a dividend of $2 per share ...
BUSINESS MATH - Part B: The Crescent Corporation just paid a dividend of $2 per ...
finance - The expected return on the market is 12% and the risk free rate is 7...
Statistics - According to a recent survey, 75% of all customers will return to ...
paul - A stock will provide a rate of return of either 20% or +28% . 1. If ...
Finance - A portfolio consists of three stocks. The weight, expected rate of ...
Finance - You are considering buying 100 shares of TEXAS INC common stock. The ...
Finance - IBM's common stock has a beta of 0.85. If the expected risk-free ...
Finance - 21. Consider an economy with two types of firms, S and I. S firms all ...

Members