Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Statistics and Probability Expert

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%.

Statistics and Probability, Statistics

  • Category:- Statistics and Probability
  • Reference No.:- M93104465
  • Price:- $10

Priced at Now at $10, Verified Solution

Have any Question?


Related Questions in Statistics and Probability

A school district is trying to estimate the proportion of

A school district is trying to estimate the proportion of students at the high school who would eat a school breakfast if the cafeteria were opened to students at 6 am. A new employer opened up within the district and th ...

Help me solve the following1 when there is a significant

Help me solve the following 1) When there is a significant difference in the population, but the research fails to find one ...this is what kind of error? 2) Assume that when victims are asked how well their needs were m ...

A clothing quality director determines the accuracy of nfl

A clothing quality director determines the accuracy of NFL Logos on t-shirts. 9% of the shirts made that day are defective. The shirts are sold in packages of 10. Find the probability that in one randomly selected packag ...

The december cbot treasury bond futures contract is quoted

The December CBOT Treasury bond futures contract is quoted at 92-19. If annual interest rates go up by 1.50 percentage points, what is the gain or loss on the futures contract? (Assume a $1,000 par value, and round to th ...

The probability that someone made a purchase at a store is

The probability that someone made a purchase at a store is 0.36. You randomly select 15 people who went to the store. The random variable x represents the number of people who made a purchase. a. Find the probability tha ...

An important part of the customer service responsibilities

An important part of the customer service responsibilities of a cable company relates to the speed with which trouble in service can be repaired. Historically, the data show that the likelihood is 0.75 that troubles in a ...

Breeding records reveal that 1 out of every 8 puppies of a

Breeding records reveal that 1 out of every 8 puppies of a certain Welsh Corgi female are runts. Since these puppies can't be sold for full price, we wish to examine the frequency with which this condition is likely to o ...

Red tide is a bloom of poison-producing algae-a few

"Red tide" is a bloom of poison-producing algae-a few different species of a class of plankton called dinoflagellates. When the weather and water conditions cause these blooms, shellfish such as clams living in the area ...

Question you are throwing a party and fill a bowl with 63

Question: You are throwing a party and fill a bowl with 63 ounces of punch. Suppose the expected size of each cup of punch is 2 ounces and the standard deviation of the size of a cup of punch is A ounce and each cup is p ...

A child care center wants to determine if there is a

A child care center wants to determine if there is a relationship between how long a child naps in minutes (20,21,22,23,24,etc.,etc) and incidents of aggression (1,2,3,4,etc.,etc). What type of statistical test should be ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As