How to calculate a stock's expected return, variance, and standard deviation using probabilities

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  • 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.
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Комментарии • 9

  • @yescarolinecansing
    @yescarolinecansing 7 месяцев назад +2

    so straight forward and helpful thank you

  • @sophynasambu118
    @sophynasambu118 Год назад

    Made it easier! Amazing.

  • @user-hx2sl6jp3u
    @user-hx2sl6jp3u 10 месяцев назад +1

    you forgot to take first the mean of the variance and then the sqrt of it.

  • @elizabetheuesandray4527
    @elizabetheuesandray4527 Год назад

    Really helpful, thank you sir.

  • @jd0879
    @jd0879 Год назад +3

    There's no formulas in excel to get to G6 in one shot?

  • @Smiley_fan25
    @Smiley_fan25 Год назад +1

    What about if you only have the expected return but no probabilities? How do you calculate the standard deviation?

  • @gerryc4185
    @gerryc4185 4 месяца назад

    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

  • @tejesaladdin6484
    @tejesaladdin6484 Год назад

    how to calculate probabilities for the return which is defined in this? Please let me know how it is.

  • @valdezmaury467
    @valdezmaury467 11 месяцев назад

    How did you "copy it down for each one" I keep having to manually put it into it. Sorry do not know excel