Standard deviation and expected rate of return.

Related BrainMass Solutions

• Finding the Standard Deviation of a Portfolio Using Beta

  480899 Standard Deviation I need help with the following: Suppose that the expected return on the market is 12% and the risk free rate is 7%. The standard deviation of the return on the market is 15%.

• Expected return, standard deviation, coefficent of variation

  Above Average 0.2 25 Strong 0.1 60 1 Calculate the stock's expected return, standard deviation, and coefficient of variation Expected Return = Sum (probability X rate of return) Expected Return = (0.1X-50% + 0.2X-5%+0.4X16%+

• Expected return,standard deviation, coefficient of variation

  Standard deviation is calculated as Standard Deviation = Square root (Sum(expected return - return)^2 X probability) Find the difference between the rate of return and expected return, take the square and multiply by the related probability.

• Securities: What expected rate of return would a security earn if it had a 0.6 correlation with the market portfolio and a standard deviation of 3 percent?

  Capital Market Line (CML): The risk-free rate asset has a return of 5% and a standard deviation of zero and the portfolio has an expected return of 25% and a standard deviation of 4%. These two points must lie on the Capital Market Line.

• Expected return, standard deviation of stocks/portfolio

  .% - 4.9% ) Answer: expected rate of return would a security earn = 11.1 % The solution calculate the expected return and standard deviation of a portfolio and expected return of a stock using capital-asset-pricing model (CAPM).

• What expected rate of return would a security earn if it had a 0.6 correlation with the market portfolio and a standard deviation of 3 percent?

  The expected rate of return of a security that have a 0.6 correlation with the market portfolio and standard deviation of 3% is 11.1% .

• Expected rate of return and the standard deviation

  rate of return and the standard deviation?

• An Explanation of the Expected Rate of Return

  67194 An Explanation of the Expected Rate of Return A portfolio that combines the risk-free asset and the market portfolio has an expected return of 22 percent and a standard deviation of 5 percent.

• Expected Return, Standard Deviation and C.V.

  90137 Expected Return, Standard Deviation and C.V.

• Finance: Portfolio return and risk.

  RATE OF RETURN AND STANDARD DEVIATION Problem 13. Security A offers an expected return of 15 percent with a standard deviation of 7 percent. Security B offers an expected return of 9 percent with a standard deviation of 4 percent.