SHOW WORK QUESTION 1 The following returns are predicted for ABC stock under three projected economic scenarios.

Pi = Probability of economic scenario i. Ri = Return of ABC stock in economic scenario i. PiRi

Boom0.2512%

Normal0.56%

Recession0.25-2% What is the standard deviations of returns? If the returns are normally distributed, what is the expected range of returns assuming a 95% level of confidence? If the price of stock is currently $50, what is the expected range of prices using a 95% level of confidence? QUESTION 2 The following information is given:

View complete question SHOW WORK QUESTION 1 The following returns are predicted for ABC stock under three projected economic scenarios.

Pi = Probability of economic scenario i. Ri = Return of ABC stock in economic scenario i. PiRi

Boom0.2512%

Normal0.56%

Recession0.25-2% What is the standard deviations of returns? If the returns are normally distributed, what is the expected range of returns assuming a 95% level of confidence? If the price of stock is currently $50, what is the expected range of prices using a 95% level of confidence? QUESTION 2 The following information is given: ProbabilityReturn – StockKReturn – Stock L

Recession XXXXXXXXXX

Boom XXXXXXXXXX What is the expected return and standard deviation of the portfolio if we hold 60% of Stock K and 40% of stock L? QUESTION 3 The risk-free rate is 8% and the expected return on the market is 16%. As an analyst, you are preparing a recommendation report on the following two stocks:

StockSStock B

Beta XXXXXXXXXX

Expected dividend nextyear$1.10$4.00

Growth rate(g)8%6%

Current Price(p0) $22$30.77 a. Would you recommend to buy or sell the stocks? Explain. b. At what prices will you change your decision from either buy or sell to hold? QUESTION 1 The following returns are predicted for ABC stock under three projected economic scenarios.

Pi = Probability of economic scenario i. Ri = Return of ABC stock in economic scenario i. PiRi

Boom0.2512%

Normal0.56%

Recession0.25-2% What is the standard deviations of returns? If the returns are normally distributed, what is the expected range of returns assuming a 95% level of confidence? If the price of stock is currently $50, what is the expected range of prices using a 95% level of confidence? QUESTION 2 The following information is given: ProbabilityReturn – StockKReturn – Stock L

Recession0.70-0.200.30

Boom0.300.700.10 What is the expected return and standard deviation of the portfolio if we hold 60% of Stock K and 40% of stock L? QUESTION 3 The risk-free rate is 8% and the expected return on the market is 16%. As an analyst, you are preparing a recommendation report on the following two stocks:

StockSStock B

Beta0.851.35

Expected dividend nextyear$1.10$4.00

Growth rate(g)8%6%

Current Price(p0) $22$30.77 Would you recommend to buy or sell the stocks? Explain. At what prices will you change your decision from either buy or sell to hold?

View less

The price is based on these factors:

Academic level

Number of pages

Urgency

Basic features

- Free title page and bibliography
- Unlimited revisions
- Plagiarism-free guarantee
- Money-back guarantee
- 24/7 support

On-demand options

- Writer’s samples
- Part-by-part delivery
- Overnight delivery
- Copies of used sources
- Expert Proofreading

Paper format

- 275 words per page
- 12 pt Arial/Times New Roman
- Double line spacing
- Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Delivering a high-quality product at a reasonable price is not enough anymore.

That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more