1. This question relates to content of Session 1 and is based on the following example.
Consider a model for describing a random return on Stock C next week, RC. According to this
model, RC can be described using the following 5 scenarios. You can find these data in the
posted file Stock C.xlsx.
What is the expected value of the return on Stock C next week, i.e., what is the value of E[RC]?
Choose the closest from the answers below.
-0.005
0.010
0.015
0.020
0.000
0.005
2. This question relates to content of Session 1 and is based on the following example.
Consider a model for describing a random return on Stock C next week, RC. According to this
model, RC can be described using the following 5 scenarios. You can find these data in the
posted file Stock C.xlsx.
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What is the standard deviation of the return on Stock C next week, i.e., what is the value of
SD[RC]? Choose the closest from the answers below.
0.041
0.021
0.051
0.031
0.011
3. This question relates to content of Session 1 and is based on the following example.
Consider a model for describing a random return on Stock C next week, RC. According to this
model, RC can be described using the following 5 scenarios. You can find these data in the
posted file Stock C.xlsx.
What is the probability that the return on Stock C next week is negative? Choose the closest
from the answers below.
0.5
0.4
0.1
0.3
0.2
4. This question relates to content of Sessions 1 and 2 and is based on the following example.
Consider a model for describing random returns on Stocks D and E next week, RD and RE.
According to this model, RD and RE can be described using the following 3 scenarios. You can
find these data in the posted file Stocks DE.xlsx
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