The expected return for an individual asset is the sum of expected returns in each state of the world multiplied by the probability of each state of the world occurring. Group of answer choices True False
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- Expected return and standard deviation a. What is the expected return of asset J?The expected value, standard deviation of returns, and coefficient o below.) \table[[Asset A],[Possible Outcomes,Probability,Returns (%)The expected rate of return of an investment ________. a. equals one of the possible rates of return for that investment b. equals the required rate of return for the investment c. is the mean value of the probability distribution of possible returns d. is the median value of the probability distribution of possible returns e. is the mode value of the probability distribution of possible returns
- A realized return is the rate of return actually earned on an investment. Group of answer choices True FalseWhat is the gradient-series present-worth factor with formula?What role does the correlation what role does the correlation of two assets play in computation of the expected return of the two asset portfolio ?
- Make a simple example of the following: a. Capital Gain (or Losses) b. Expected Return c. Real Return d. Risk-free Return e. Required Return f. Holding Period Returnc) Do the Net Present Value (NPV) and internal rate of return (IRR) always agree to accept-reject decisions? And to ranking decisions? Please explain.Which are the Methods for Finding Rate of Return?