The returns on the common stock of new image products are quite cyclical. in a boom economy the stock is expected to return 24% in comparison to 14% in a normal economy and a -16% in a recessionary period. The probability of a recession is 15% all the probability of a boom is 25%. What is the standard deviation of the returns on this stock?
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- The returns on the common stock of New Image Products are quite cyclical. In a boom economy, the stock is expected to return 23 percent in comparison to 14 percent in a normal economy and a negative 18 percent in a recessionary period. The probability of a recession is 18 percent while the probability of a boom is 22 percent. What is the standard deviation of the returns on this stock?The returns on the common stock of New Image Products are quite cyclical. In a boom economy, the stock is expected to return 23 percent in comparison to 14 percent in a normal economy and a negative 18 percent in a recessionary period. The probability of a recession is 18 percent while the probability of a boom is 22 percent. What is the standard deviation of the returns on this stock? 12.08 percent 15.83 percent 13.71 percent 11.56 percentThe returns on the common stock of Alpha Cycles, Inc. are quite cyclical. In a boom economy, the stock is expected to return 31.0% in comparison to 11.0% in a normal economy and negative 18.0% in a recessionary period. The probability of a recession is 12% while the probability of a boom is 22%. The remainder of the time the economy will be at normal levels. What is the standard deviation of the returns on this stock?
- The returns on the common stock of Alpha Cycles, Inc. are quite cyclical. In a boom economy, the stock is expected to return 28.0% in comparison to 12.0% in a normal economy and negative 14.0% in a recessionary period. The probability of a recession is 17% while the probability of a boom is 22%. The remainder of the time the economy will be at normal levels. What is the standard deviation of the returns on this stock? Multiple Choice O 16.97% 13.05% 6.01% 19.97% 13.58% (CtrlBlue Bell stock is expected to return 8.4 percent in a boom, 8.9 percent in a normal economy, and 9.2 percent in a recession. The probabilities of a boom, normal economy, and a recession are 6 percent, 92 percent, and 2 percent respectively. What is the standard deviation of the returns on this stock? Can the calculator an excel solution be provided?Assume the economy has an 6 percent chance of booming, am 8 percent chance of being recessionary, and being normal the remainder of the time. A stock is expected to return 22.5 percent in a boom, 11.5 percent in a normal economy, and −8 percent in a recession. What is the expected rate of return on this stock?
- A stock is expected to return 13 percent in an economic boom, 10 percent in a normal economy, and 3 percent in a recessionary economy. All else equal, which one of the following will lower the overall expected rate of return on this stock? A decrease in the probability of a recession occurring An increase in the rate of return in a recessionary economy A decrease in the probability of an economic boomThe returns on the common stock of New Image Products are quite cyclical. In a boom economy, the stock is expected to return 20 percent in comparison to 12 percent in a normal economy and a negative 10 percent in a recessionary period. The probability of a recession is 15 percent while the probability of a boom is 25 percent. What is the standard deviation of the returns on this stock? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)What is the variance on a stock that has expected rate of return of 18% in a boom economy, 8% in a normal economy, and 2% in a recession. The probability of these economies are 12% for a boom, 78% for a normal and 10% for a recession?
- A stock is expected to return 9% in a normal economy, 14% if the economy booms, and lose 4% if the economy moves into a recessionary period. Economists predict a 67% chance of a normal economy, a 22% chance of a boom, and a 11% chance of a recession. The expected return on the stock is ______%.Suppose that the probability that the economy will be in a recession one year from now is 0.25. If the economy is in a recession one year from now the price of XYZ common stock will be $150. If the economy is not in a recession one year from now the price of XYZ common stock will be $200. If the current price of XYZ stock is $175, what is the standard deviation of the returns of XYZ common stock over the next year? Enter your answer as a percent without the “%”. Round your final answer to two decimals.The returns on shares of Valley Transporter are predicted under the following various economic conditions: Recession -0.11 Normal +0.08 Boom +0.25 If each economy state has the same probability of occurring (33.33%), what is the variance of the stock?