Qd.23. Problem 13-5 Calculating Expected Return [LO1]Consider the following information:State of EconomyRecessionBoomProbability ofState ofExpected returnEconomy2179PortfolioReturn if StateOccurs-.11Calculate the expected return. (Do not round intermediate calculations and enter youranswer as a percent rounded to 2 decimal places, e.g., 32.16.)%21

Expected returns can be calculated by multiplying their respective probabilities with their…

Answered: Problem 13-5 Calculating Expected…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Problem 13-5 Calculating Expected Return [LO1] Consider the following information: State of Economy Recession Boom Probability of State of Expected return Economy 34 66 Calculate the expected return. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Portfolio Return if State Occurs -.19 27 % C
Problem 11-6 Calculating Expected Return [LO 1] Consider the following information: Rate of STY Probability of State Return State of if State Economy Recession of Economy .19 Occurs -10 Normal .46 .12 Вoom .35 .31 Calculate the expected return. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Expected return %
erk F21 Question 8 of 20 View Policies Current Attempt in Progress In a period of inflation, which cost flow method produces the highest net income? O FIFO method O LIFO method O average-cost method O gross profit method eTextbook and Media Save for Later
A Problem 13-5 Calculating Expected Return [LO1] Consider the following information: State of Economy Recession Boom Probability of Portfolio State of Return if State Occurs -.20 .28 Economy .35 .65 Calculate the expected return. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Expected return t ] nces %
Given this payoff table:STATE OF NATURE#1 #2A $120* 20Alternative B 60 40C 10 110D 90 90*Payoff in $ thousands.a. Determine the range of P(1) for which each alternative would be best, treating the payoffs asprofits.b. Answer part a treating the payoffs as costs.
Problem 8-13 Calculating Profitability Index [LO 6] Consider the following cash flows: Year Cash Flow 0 −$ 29,700 1 14,000 2 14,900 3 11,300 What is the profitability index for the cash flows if the relevant discount rate is 12 percent? Note: Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161. What is the profitability index if the discount rate is 17 percent? Note: Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161. What is the profitability index if the discount rate is 24 percent? Note: Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.
Question 17 The central issue of efficient market concerns: O regulations O structure O participants O information A Moving to another question will save this response. esc 20 F3 000 F1 F2 F4 F5 $4 2 3. Q W E R
Q25 Following are three economic states, their likelihoods, and the potential returns: Economic State Probability Return Fast growth 0.3 40 % Slow growth 0.4 10 Recession 0.3 –25 Determine the standard deviation of the expected return. (Do not round intermediate calculations and round your answer to 2 decimal places.) STANDARD DEVIATION. %
k #8 (Chapter 9b), Round 2 Problem 9-15 Calculating Profitability Index [LO7] Year 0 1 2 3 Cash Flow -$17,500 9,800 8,700 5,200 Saved a. What is the profitability index for the set of cash flows if the relevant discount rate is 10 percent? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.) b. What is the profitability index for the set of cash flows if the relevant discount rate is 15 percent? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.) c. What is the profitability index for the set of cash flows if the relevant discount rate is 22 percent? (Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.) a. Profitability index b. Profitability index c. Profitability index
QUESTION 40 The potential losses are sorted in the following table. The absolute VaR is £8 Million. What is the relative expected shortfall from the mean? Sorted returns Returns (£ Million) -12 -10 -8 -6 -4 -3 -1.5 OA. 4.64 B.-11 C.-6.36 D.2.64
of 4 Section 1_0v 6 78 4. 6. 10 3 of 3 Question # 3 A Report a Problem G Revisit Choose the best option We multiply a given future value by this in order to get its present value equivalent. O discount rate O present value O discounted value O discount factor Deepanshu | Support +1 650-924-9221 +91 80 4719 0917 I metti Type here to search
Sheet 5 Use Sheet 5 to complete the following Date GOOG Return NFLX Return Market Return Risk-Free Return GOOG Excess Return* NFLX Excess Return* Market Excess Return* 3/1/2017 0.7700 4.0000 3.7200 0.0050 0.2700 3.5000 3.2200 4/1/2017 9.2100 2.9700 -0.0400 0.0050 8.7100 2.4700 -0.5400 5/1/2017 6.5000 7.1400 0.9100 0.0050 6.0000 6.6400 0.4100 6/1/2017 -5.8200 -8.3800 1.1600 0.0050 -6.3200 -8.8800 0.6600 7/1/2017 2.4000 21.5800 0.4800 0.0050 1.9000 21.0800 -0.0200 8/1/2017 0.9500 -3.8300 1.9300 0.0050 0.4500 -4.3300 1.4300 9/1/2017 2.1100 3.8000 0.0500 0.0050 1.6100 3.3000 -0.4500 10/1/2017 6.0000 8.3200 1.9300 0.0050 5.5000 7.8200 1.4300 11/1/2017 0.4700 -4.5100 2.2200 0.0050 -0.0300 -5.0100 1.7200 12/1/2017 2.4500 2.3400 2.8100 0.0050 1.9500 1.8400 2.3100 1/1/2018 11.8100 40.8100 0.9800 0.0050 11.3100 40.3100 0.4800 2/1/2018 -5.5700 7.8000 5.6200 0.0050 -6.0700 7.3000 5.1200 3/1/2018 -6.6000 1.3600 -3.8900 0.0050 -7.1000 0.8600…

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