The world’s Largest Sharp Brain Virtual Experts Marketplace Just a click Away
Levels Tought:
University
| Teaching Since: | Apr 2017 |
| Last Sign in: | 438 Weeks Ago, 5 Days Ago |
| Questions Answered: | 9562 |
| Tutorials Posted: | 9559 |
bachelor in business administration
Polytechnic State University Sanluis
Jan-2006 - Nov-2010
CPA
Polytechnic State University
Jan-2012 - Nov-2016
Professor
Harvard Square Academy (HS2)
Mar-2012 - Present
Problem 11-5
| Â | Â | Security Returns If State Occurs | |||||||||
|   State of   Economy |
Probability of   State of Economy |
 | |||||||||
| Â Â Â Â Â Â Â Â Roll | Â Â Â Â Â Â Â Ross | ||||||||||
|   Bust | .30 | Ac€?o11 | % | 12 | % | ||||||
| Â Â Boom | .70 | 29 | Â | 5 | Â | ||||||
| Â | |||||||||||
|
Calculate the standard deviations for Roll and Ross by filling in the following table (verify your answer using returns expressed in percentages as well as decimals):Â (Negative values should be indicated by a minus sign. Do not round intermediate calculations. Round your Standard deviation answers to 2 decimal places and other answers to 4 decimal places. Omit the "%" sign in your response.) |
| State of Economy |
   Probability of   State of Economy |
   Return Deviation   from Expected Return |
    Squared Return Deviation |
     Product | |||||||
| Â Â Roll | Â | Â | Â | Â | |||||||
| Â Â Â Â Bust | .30 | Â Â Â Â | Â Â | Â Â | |||||||
| Â Â Â Â Boom | .70 | Â Â Â Â | Â Â | Â Â | |||||||
| Â Â Â | Â | Â | Â | Â | |||||||
| Â | Â | Â | A?A?2Â = | Â Â | |||||||
| Â Â Â | Â | Â | Â | Â | |||||||
| Â Â Ross | Â | Â | Â | Â | |||||||
| Â Â Â Â Bust | .30 | Â Â Â Â | Â Â | Â Â | |||||||
| Â Â Â Â Boom | .70 | Â Â Â Â | Â Â | Â Â | |||||||
| Â Â Â | Â | Â | Â | Â | |||||||
| Â | Â | Â | A?A?2Â = | Â Â | |||||||
| Â Â Â | Â | Â | Â | Â | |||||||
| Â | |||||||||||
| Â | Standard Deviations |
| Â Â Roll | % |
| Â Â Ross | % |
Sta-----------te -----------of -----------eco-----------nom-----------y P-----------rob-----------abi-----------lit-----------y o-----------f s-----------tat-----------e o-----------f e-----------con-----------omy----------- Ra-----------te -----------of -----------ret-----------urn----------- if----------- st-----------ate----------- oc-----------cur-----------s R-----------oll----------- Ro-----------ss -----------Bus-----------t 0-----------.30----------- -1-----------1.0-----------0% ------------12-----------.00-----------% B-----------oom----------- 0.-----------70 -----------29.-----------00%----------- 5.-----------00%----------- Ex-----------pec-----------ted----------- re-----------tur-----------n