Bout the standard deviation

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The return on shares of the Orange Company are predicted under the following states of nature.

The states of nature are all equally likely, and because there are a total of three states, each state has a 33.333% chance of occurring.

Recession -0.11 Normal +0.09 Boom +0.21

What is the standard deviation of Orange?

What is the expected return on asset : what is the expected return on asset i using CAPM model?

Compute the beta of drucker corporation stock : The analyst considers each state to be equally likely. Using these data, compute the beta of Drucker Corporation's stock.

What will be the company capital budget for the next year : Assuming the company's projects are divisible, what will be the company's capital budget for the next year?

Retained earnings will it need to fund capital budget : Suppose Reynolds follows the residual model and makes all distributions as dividends. How much retained earnings will it need to fund its capital budget?

Bout the standard deviation : What is the standard deviation of Orange?

What level of pre-tax cost savings : What level of pre-tax cost savings do we require for this project to be profitable?

Compute the call option delta and interpret : Compute the call option’s delta and interpret your answer. Compute the call option’s gamma and interpret your answers.

What is the book value at the end of the third year : What is the amount of the MACRS-GDS depreciation taken in the 3rd year? What is the book value at the end of the 3rd year?

Expected synergies from the transaction : You will pay for TargetCo by issuing new shares. There are no expected synergies from the transaction.