{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Winter 2011 Assignment 1

# Winter 2011 Assignment 1 - AP/ADMS 3531 Winter 2011...

This preview shows pages 1–3. Sign up to view the full content.

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
Guidelines for rounding: If you are using percents, for example 1.23%, then you should use two decimal places for your calculations. If the same number is converted to decimal form, as 0.0123, then use four decimal places throughout your calculations. Dollar amounts, for example a share price of \$12.34, should be rounded to the nearest cent. However, if there are no pennies, such as 100 shares worth \$12 per share, then use integer dollar amounts. 1. (15 points) You are provided with the following probability distributions on the returns on three stocks: B, U and Y. State of Economy Probability of State (%) Return on Stock B (%) Return on Stock U (%) Return on Stock Y (%) Excellent 20 50 35 25 Good 35 20 30 20 Moderate 25 16 -10 8 Poor 20 -30 0 5 (a) Calculate the expected return and the standard deviation of returns of each stock.
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### Page1 / 6

Winter 2011 Assignment 1 - AP/ADMS 3531 Winter 2011...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online