How to calculate a stock's expected return, variance, and standard deviation using probabilities
HTML-код
- Опубликовано: 22 авг 2024
- I start with a distribution of stock returns (probabilities and outcomes). I then compute the expected return, variance, and standard deviation using an Excel spreadsheet. Note these are population parameters, not estimates.
==
I'm a Finance Professor at the University of Tennessee in Knoxville. For more information about my teaching and research, please visit my website.
sites.google.c...
so straight forward and helpful thank you
Made it easier! Amazing.
you forgot to take first the mean of the variance and then the sqrt of it.
Really helpful, thank you sir.
There's no formulas in excel to get to G6 in one shot?
What about if you only have the expected return but no probabilities? How do you calculate the standard deviation?
can someone help me with this problem Consider the following information:
State of Economy Probability of State of Economy Rate of Return if State Occurs
Stock A Stock B Stock C
Boom 0.25 0.18 0.37 0.27
Good 0.15 0.13 0.14 0.15
Poor 0.40 −0.01 −0.11 −0.04
Bust 0.20 −0.19 −0.16 −0.13
a. Your portfolio is invested 40 percent each in Stocks A and C and 20 percent in Stock B. What is the expected return of the portfolio? Find the variance and standard deviation. I got the expected return and it is 3.575 but I CANNOT GET the other two. please help
how to calculate probabilities for the return which is defined in this? Please let me know how it is.
How did you "copy it down for each one" I keep having to manually put it into it. Sorry do not know excel