Calculate the expected rates of return for the market and Stock A, the standard deviation for the market and Stock A and the coefficients of variation for the market and Stock A.
Not what you're looking for?
The market and Stock A have the following probability distributions:
Probability km (Market) kA (Stock A)
0.3 15% 20%
0.4 9 5
0.3 18 12
a. Calculate the expected rates of return for the market and Stock A.
b. Calculate the standard deviations for the market and Stock A.
c. Calculate the coefficients of variation for the market and Stock A.
Show all work and all steps.
Purchase this Solution
Solution Summary
This solution calculates the expected rates of return, the standard deviations, and the coefficients of variation for the market and Stock A.
Solution Preview
a. Calculate the expected rates of return for the market and Stock A.
E(Km)=SUM(Pri*Kmi)=.3*15+.4*9+.3*18=13.5%
E(Ka)=SUM(Pri*Kai)=.3*20+.4*5+.3*12=11.6%
b. ...
Purchase this Solution
Free BrainMass Quizzes
Production and cost theory
Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.
Team Development Strategies
This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.
Basics of corporate finance
These questions will test you on your knowledge of finance.
Marketing Research and Forecasting
The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.
Organizational Leadership Quiz
This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.