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  • Expected Return

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    Srinivas Korlepara
    17 views3 pages
    The document contains financial calculations and statistics related to investments including returns, yields, probabilities, and standard deviations. It calculates realized and dividend returns on an investment with a purchase price of $48.59 that was sold for $57.41 and paid a $1.07 dividend. It also provides expected return, variance and standard deviation calculations for investments with different probability-weighted returns.

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    Standard Deviation calculation

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    ISB

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    The document contains financial calculations and statistics related to investments including returns, yields, probabilities, and standard deviations. It calculates realized and dividend returns on an investment with a purchase price of $48.59 that was sold for $57.41 and paid a $1.07 dividend. It also provides expected return, variance and standard deviation calculations for investments with different probability-weighted returns.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    17 views3 pages

    Expected Return

    Uploaded by

    Srinivas Korlepara
    The document contains financial calculations and statistics related to investments including returns, yields, probabilities, and standard deviations. It calculates realized and dividend returns on an investment with a purchase price of $48.59 that was sold for $57.41 and paid a $1.07 dividend. It also provides expected return, variance and standard deviation calculations for investments with different probability-weighted returns.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 3

    Purchase price 48.59 Purchase price 48.

    59
    Sale price 57.41 Sale price 48.59
    Dividend received 1.07 Dividend received 1.07

    Return or Yield =(D+(P1-P0))/P0 =(D+(P1-P0))/P0


    Realized Return 20.35% Dividend Return 2.20%

    Expected return
    Probability 40.00% 20.00% 20.00% 10.00% 10.00%
    Return -80.00% -75.00% -40.00% -25.00% 1000.00%
    Expected return 42.50%
    Variance 10.23
    Standard Deviation 319.78%

    Expected return
    Probability 40.00% 20.00% 20.00% 10.00% 10.00%
    Return -80.00% -85.00% -40.00% -20.00% 1000.00%
    Expected return 41.00%
    Variance 10.27
    Standard Deviation 320.44%
    Purchase price 48.59
    Sale price 57.41
    Dividend received 0

    =(D+(P1-P0))/P0
    Capital gain 18.15%
    Asset Beta (Unlevered Beta) = Levered Beta (Equity Beta) / [ 1 + (1- tax rate) (Debt/Equity) ]

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