Based on the attached information, calculate the expected return and standard deviation for the two stocks. Probability of State of Economy Stock P Rate of Return Stock Q Rate of Return State of Economy Recession 0.15 0.04
Consider the information on the attached spreadsheet. a. Your portfolio is invested 35% each in A and C, and 30% in B. What is the expected return of the portfolio? b. What is the variance of this portfolio? The standard deviation? Problem 11-10 Rate of Return, if State Occurs Probability of St
Using the following returns, calculate the average returns, the variances, and the standard deviations for X and Y. See attached spreadsheet for the data. Prob #7 RETURNS Year X Y 1 10% 26% 2 18 -4 3 -8 -10 4 12 42 5 6 21
You can sell widgets for $50/Y, where Y is the number of widgets you sell. In other words, the more widgets you sell, the lower the price. It costs $1.5Y to make Y widgets. Using Excel, how many widgets do you make to maximize your profits?