Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. problem 6-06 expected returns: discrete distributi

Problem 6-06 Expected Returns: Discrete Distribution The market and Stock J have the following probability distributions: Probability rM rJ 0.3 12% 19% 0.4 10 3 0.3 17 11 Calculate the expected...

70.2K

Verified Solution

Question

Finance

Problem 6-06
Expected Returns: Discrete Distribution

The market and Stock J have the following probabilitydistributions:

ProbabilityrMrJ
0.312%19%
0.4103
0.31711
  1. Calculate the expected rate of return for the market. Roundyour answer to two decimal places.
    %

    Calculate the expected rate of return for Stock J. Round youranswer to two decimal places.
    %
  2. Calculate the standard deviation for the market. Do not roundintermediate calculations. Round your answer to two decimalplaces.
    %

    Calculate the standard deviation for Stock J. Do not roundintermediate calculations. Round your answer to two decimalplaces.
    %

Answer & Explanation Solved by verified expert
3.6 Ratings (531 Votes)
Solution a The expected rate of return for the market 1270The expected rate    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

Problem 6-06Expected Returns: Discrete DistributionThe market and Stock J have the following probabilitydistributions:ProbabilityrMrJ0.312%19%0.41030.31711Calculate the expected rate of return for the market. Roundyour answer to two decimal places.%Calculate the expected rate of return for Stock J. Round youranswer to two decimal places.%Calculate the standard deviation for the market. Do not roundintermediate calculations. Round your answer to two decimalplaces.%Calculate the standard deviation for Stock J. Do not roundintermediate calculations. Round your answer to two decimalplaces.%

Other questions asked by students

Q

Which describes a difference between DNA and RNA A D B C DNA constructs proteins...

Biology
Q

If you as a pathogen needed to stop the host from walling you off behind...

Biology
Q

same thickness The peripheries of the two dis system taking center of large disc at...

Physics
Q

Find the absolute maximum value of the function f x x e maximum value

Calculus
Q

Arnold Vimia is a venture capitalist...

Accounting
Q

Johnson Corporation began the year with Inventory of 10,000 units of its only product. The...

Accounting
Q

13. Quanti Co., a calendar-year taxpayer, purchased small tools for $5,000 on December 21, 20X14,...

Accounting
Q

December 31, 2019 Unadjusted Trial Balance $ 19, 200 5,100 $ 850 15,000 43,000 @...

Accounting
Q

Using the 2019 Form 10-K for McCormick & Company, calculate (take all calculations to two...

Accounting
Q

Jep Co.'s accounting records include the following information. tracking. At December 31, Year 1, what...

Accounting
Q

HW10: Problem 3 Previous Problem List Next 5.5% effective. The other half of the loan...

Accounting
Q

Q19. The risky portfolio P includes two risky assets A and B. The weight on...

Finance