Calculate the expected returns and standard deviation

Assignment Help Financial Accounting
Reference no: EM133184154

Question - An entity has an investment which analyst think that there will be a 40% probability that the expected return will be 10%; 50% chance it will be 6% and 10% chance that the return will be 20%. Calculate the expected returns and standard deviation.

Reference no: EM133184154

Questions Cloud

What are four major sources of funds for banks : What are four major sources of funds for banks? What is the formula for the net interest margin? Explain why it is closely monitored by banks
Descriptions of planning strategies : You were recently hired as an administrator within a healthcare organization that have been suffering from:
Draw a network diagram representing the sequence : Draw a network diagram representing the sequence of activities and the dependence between them - What is the probability that at least half of the hotel
Significant deficiency in internal control : Assuming the company and the auditor concluded that this internal control failure is not severe enough to be a material weakness but indicates a significant def
Calculate the expected returns and standard deviation : An entity has an investment which analyst think that there will be a 40% probability. Calculate the expected returns and standard deviation
Describe the three stages of perception : 1. Can you briefly describe the three stages of perception and why Instagram is so appealing to consumers as a platform for brands to reach out to them?
Managing the foreign exchange exposure of damc : Covid-19 looks like a "bend but won't break crisis" for globalization. International capital flows are plummeting, but globalization - and opposition to globali
Cyber security incident-equifax hack : Describe hack, incident, or discovery of vulnerability? Explain how it works and what happened. Be sure to identify which of the pillars of the CIA Triad were c
What is the variable of interest in this example : They wanted to know whether the presence of good weather influenced patrons to tip higher. What is the variable of interest in this example

Reviews

Write a Review

Financial Accounting Questions & Answers

  Describe ethical dilemma for disclosing legal liabilities

Describe the ethical dilemma for disclosing legal liabilities, and the options for accountants. Does this change culture to culture

  What are the various types of businesses

As an expert accountant you are required to discus the key elements of financial statements of various types of businesses and highlight the distinctive yeature

  Calculate the net after-tax cash flows from this investment

The computer is in the 5-year MACRS category, and the firm's tax rate is 34%. Calculate the net after-tax cash flows from this investment

  Prepare the amortization table

Prepare the amortization table - Ning Co. received a 3-year, non-interest bearing note of P900,000 in exchange for machinery

  Determine the amount to be credited to paid-in-capital

Determine the amount to be credited to Paid-in-Capital for Common Stock" on July 1st, 2020. If an amortization table is needed

  Should the investor purchase the bond

Should the investor purchase the bond? An issue of bonds with par of $1000 matures in 12 years and pays interest at 7% annually. The current quoted market price

  What is net present value of the project

An investment of $100,000 promises returns of $40,000 per year for each of the next three years. If taxes are ignored and the required rate of return is 14%, what is net present value of the project?

  What are heritage assets

The assignment focuses on the topic of heritage(assets and it is based on understanding the nature of heritage assets, the issues of measuring such assets and a practical case study on accounting for heritage assets in National Gallery of Victoria

  State the amount pdc should recognize related to the asset

State the amount PDC should recognize related to this asset retirement obligation. Include an Excel schedule and calculations as presented in the Asset

  Illustrate what does the lawyer earn during the year

The remaining hours are worked on a contingency basis. The lawyer wins $300,000 in settlements for his clients of which he receives half. Illustrate what does the lawyer earn during the year after expenses?

  Calculate the suggested value of the acquired interest

If an individual were to acquire an interest in a partnership from the partnership entity, how would one calculate the suggested value of the acquired interest?

  Calculate its price change

Its yield to maturity is currently 6%. Using modified duration, calculate its price change if the interest rate increases by 30 basis-point

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