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    Expected Return for Stocks

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    (Excel: Calculating means, standard deviations, covariance, and correlation) Given the
    probability distributions of returns for stock X and stock Y, compute:
    a. the expected return for each stock, and here

    Probability Stock X Stock Y
    0.2 5% 12%
    0.2 10 10
    0.4 12 8
    0.15 14 0
    0.05 18 2

    © BrainMass Inc. brainmass.com June 3, 2020, 10:51 pm ad1c9bdddf

    Solution Preview

    Expected Return = Summation of pi*ri where pi is the probability of a ...

    Solution Summary

    This solution shows step-by-step calculations to determine the expected return for each stock from the probability of stock X and stock Y.