Return and Risk
You have been hired as a consultant for a Saudi Arabian hospital to assess the risk for securities. You have determined that the four categories of the Saudi Arabian economy are depression, recession, normal, and booming. Using the information below, calculate the expected return, variance, and standard deviation for the stock portfolio. What do these answers convey about the organization’s risk?
Categories
Percentage
Hospital Stock
Booming
27%
20%
Normal
36%
10%
Recession
27%
5%
Depression
9%
-5%
Your final submission will be 4-5 pages in length excluding the cover and reference pages. Be sure to include:
- Analysis of the acceptable level of risk.
- Summary of findings.
Your paper should meet the following structural requirements:
- The paper should be 4-5 pages in length, not including the cover sheet and reference page.
- The paper should be formatted according to APA and Saudi Electronic University writing standards.
- Provide support for your financial statements with in-text citations from a minimum of four scholarly articles.
- Two of these sources may be from the class readings or textbook, but the others must be external and come from peer-reviewed journals.
- The Saudi Digital Library is a good place to find these references.
You are strongly encouraged to submit all assignments to the Turnitin Originality Check prior to submitting them to your instructor for grading. If you are unsure how to submit an assignment to the Originality Check tool, review the Turnitin Originality Check Student Guide.