Average returns and standard deviations for their stocks

Assignment Help Finance Basics
Reference no: EM13153388

The countries of Stabilato and Variato hae the following average returns and standard deviations for their stocks, bond, and short-term government securities. What range of returns should you expect to earn 95 percent of the time for each asset class if you invested in Stabilato's securities? From investing in Variato's securities?

Satabilato Asset Average RTN Standard DEV
Stocks 8% 3%
Bonds 5% 2%
Short-term gov debt 3% 1%

Variato Asset AVG RTN Standard DE
Stocks 15% 13%
Bonds 10% 8%
Short-term gov Debt 6% 3%  

Reference no: EM13153388

Questions Cloud

Why soft selling can serve as a successful signal : why soft selling can serve as a successful signal of the quality or usefulness of the new accounting system.
What is the ph of the solution : What is the PH after .15 mol of NaOH is added to .050 mol of propanic acid and ,080 M of sodium propanoate with a ka of 1.3x10^.5
Why fix it before it breacks : During an argument as to the merits of preventive maintenance at a printing company, the company owner asked, "Why fix it before it breacks? How would you, as the director of maintenance, respond?
Compute the change in internal energy : f the water if brought to the vapour state at 204C and 710 KPa, where its enthalpy is 2649.4 KJ/Kg and its specific volume is 291.8 cm^3/g, what is the internal energy (U) at these conditions in KJ/Kg? c) Calculate the change in internal energy (d..
Average returns and standard deviations for their stocks : The countries of Stabilato and Variato hae the following average returns and standard deviations for their stocks, bond, and short-term government securities. What range of returns should you expect to earn 95 percent of the time for each asset class..
Straight-line method both to determine interest expense : One year from the issue date (July 1, 2012), the corporation exercised its call privilege and retired the bonds for $395,000. The corporation uses the straight-line method both to determine interest expense and to amortize debt issue costs.
Calculate the marginal revenue product : Calculate the marginal revenue product given this information and how many real estate agents will the manger hire if the wage rate is $32,000? Why?
What must the structural balance : In the year 2000, the US had a Budget Balance of $236 billion dollars. The cyclical component of the budget totaled $94 billion. What must the structural balance be (in billions of dollars)?
What is the etiology, treatment and prognosis : What is the Etiology, treatment and prognosis for a19 year old soccer player complaining of chills and pain while working and experiences progressively spreading furnucles on his left leg for the past week.

Reviews

Write a Review

Finance Basics Questions & Answers

  Predict future earnings performance

Discuss how can the measures of interest rate risk be used to predict future earnings performance.

  Explain margin buying of common stocks

Discuss and explain margin buying of common stocks. Include in your discussion the advantages and disadvantages, the types of margin requirements,

  Delphi technique in risk management

Assume you are bullish on Stock X and instruct your broker to buy 1,000 shares on margin, with a margin of 60 percent. The current price of a share of Stock X is $30, the interest on loans is 5 percent and discuss the Delphi technique in risk managem..

  Article analysis by using macroeconommic indices

Conduct an analysis of a recent article and provide their evaluation and outcome expectations in a written paper of 1500-2500 words that discusses:

  Financing foreign operations

United Airlines recently inaugurated service to Japan and now wants to finance the purchase of Boeing 747s to service that route.

  Differences between two major currencies

Select two major currencies from the past year. What are similarities and differences between them? What have been drivers of each currency's performance?

  Amortization goal

To accumulate $8,000 by the end of 5 years by making equal annual end-of-year deposits for next five years. If earning 7 percent on the investments, how much must be deposited at the end of each year to meet the goal?

  Explain comparison of audit in compliance

Explain Comparison of audit in compliance with latest professional guidance where EM applied alternative procedures to accounts when confirmations requested were not received

  Capital budgeting systems of npv, pi, irr, and payback

Campare capital budgeting systems of NPV, PI, IRR, and Payback

  Compute the amount needed to fund

Upon completion of her introductory finance course Marla lee was so pleased with the value of useful and interesting knowledge she gained that she convinced her parents,

  Annual after-tax required lease income

Leases R Us, Inc. (LRU) has been contracted by Robotics of Beverly Hills (RBH) to provide lease financing for a machine that would assist in automating a large part of their current assembly line. Compute the amount to be amortized? Compute the ann..

  Estimate the continuation value

Estimate the continuation value using the market/book ratio.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd