Business, 03.01.2020 02:31 jjones9250

Economy of economy stock a stock b recession .20 .010 –.35 normal .55 .090 .25 boom .25 .240 .48

a. calculate the expected return for the two stocks. (do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e. g., 32.16.)

b. calculate the standard deviation for the two stocks. (do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e. g., 32.16.)

Answers: 2

Show answers

Answers

Answer from: molinaemily009

a. STOCK A

State of nature R(%) P ER R-ER R - ER2.P

Recession 0.010 0.20 0.002 -0.1015 0.00206045

Normal 0.090 0.55 0.0495 -0.0215 0.0002542375

Boom 0.240 0.25 0.06 0.1285 0.0041280625

ER 0.1115 Variance 0.00644275

STOCK B

State of nature R(%) P ER R - ER R - ER2.P

Recession -0.35 0.20 -0.07 -0.5375 0.05778125

Normal 0.25 0.55 0.1375 0.0625 0. 0021484375

Boom 0.48 0.25 0.12 0.2925 0.021389062

ER 0.1875 Variance 0.08131875

Expected return of stock A = 0.1115 = 11.15%

Expected return of stock B = 0.1875 = 18.75%

b. Standard deviation of stock A = √0.00644275 = 0.0802

Standard deviation of stock B = √0.08131875= 0.2852

Explanation:

In the first case, there is need to calculate the expected return of each stock by multiplying the return by probability.

In the second case, we need to obtain the variance. The square root of variance gives the standard deviation. Variance is calculated by deducting the expected return from the actual return, then, raised the difference by power 2 multiplied by probability.

Answer from: Quest

answer; management is about coping complexity and leadership is about coping with change; i believe this is correct; ///good luck

(b) management: leadership

Answer from: Quest

answerpounds of plastic to purchase 200+60-20=(240);

Other questions on the subject: Business

Business, 21.06.2019 20:30, bale4

Which of the following best describes how the federal reserve bank banks during a bank run? a. the federal reserve bank regulates exchanges to prevent the demand for withdrawals from rising above the required reserve ratio. b. the federal reserve bank acts as an insurance company that pays customers if their bank fails. c. the federal reserve bank has the power to take over a private bank if customers demand too many withdrawals. d. the federal reserve bank can provide a short-term loan to banks to prevent them from running out of money. 2b2t

Answers: 2

continue

Business, 21.06.2019 21:00, myronpacis1128

Management discovers that a supervisor at one of its restaurant locations removes excess cash and resets sales totals throughout the day on the point-of-sale (pos) system. at closing, the supervisor deposits cash equal to the recorded sales on the pos system and keeps the rest. the supervisor forwards the close-of-day pos reports from the pos system along with a copy of the bank deposit slip to the company’s revenue accounting department. the revenue accounting department records the sales and the cash for the location in the general ledger and verifies the deposit slip to the bank statement. any differences between sales and deposits are recorded in an over/short account and, if necessary, followed up with the location supervisor. the customer food order checks are serially numbered, and it is the supervisor’s responsibility to see that they are accounted for at the end of each day. customerchecks and the transaction journal tapes from the pos system are kept by the supervisor for 1 week at the location and then destroyed. what control allowed the fraud to occur?

Answers: 2

continue

Business, 21.06.2019 23:00, liluv5062

The impact fiscal multiplier is a. usually estimated to have an average value of 2. b. usually estimated to have an average value of 0. c. the actual immediate multiplier effect of a fiscal policy action after taking into consideration direct fiscal offsets and other short-term crowding out of private spending. d. the multiplier effect of a fiscal policy action that applies to a long-run period after all influences on equilibrium real gdp have been taken into account.

Answers: 3

continue

Business, 22.06.2019 01:20, chayaharroch03

What cylinder head operation is the technician performing in this figure?

Answers: 1

continue

You know the right answer?

Economy of economy stock a stock b recession .20 .010 –.35 normal .55 .090 .25 boom .25 .240 .48