- Consider The Following Information On Three Stocks State Of Economy Boom Normal Bust 1 67 5 55 8 75 A Portfolio Is I 1 (36.31 KiB) Viewed 12 times
- Consider The Following Information On Three Stocks State Of Economy Boom Normal Bust 1 67 5 55 8 75 A Portfolio Is I 2 (28.51 KiB) Viewed 12 times
- Consider The Following Information On Three Stocks State Of Economy Boom Normal Bust 1 67 5 55 8 75 A Portfolio Is I 3 (27.01 KiB) Viewed 12 times
- Consider The Following Information On Three Stocks State Of Economy Boom Normal Bust 1 67 5 55 8 75 A Portfolio Is I 4 (24.89 KiB) Viewed 12 times
You recently purchased a stock that is expected to earn 12 percent in a booming economy, 6.5 percent in a normal economy, and lose 1.5 percent in a recessionary economy. The probability of a booming economy is 14 percent while the probability of a normal economy is 65 percent. What is your expected rate of return on this stock? -2.24% 5.59% 0.35% 5.67% 6.22%
If the economy is normal, Taeana Wear stock is expected to return 9.3 percent. If the economy falls into a recession, the stock's return is projected at a negative 6.3 percent. The probability of a normal economy is 74 percent. What is the variance of the returns on this stock? 0.031962 0.004682 0.007432 0.006084 0.001802
The rate of return on the common stock of Kang Distribution is expected to be 13.5 percent in a boom economy, 8 percent in a normal economy, and only 2.5 percent in a recessionary economy. The probabilities of these economic states are 11 percent for a boom and 26 percent for a recession. What is the variance of the returns on this common stock? .001585 0.001051 0.006199 0.001119 002232