Calculate the expected value, standard deviation of returns

Assignment Help Corporate Finance
Reference no: EM1345690

The expected value, standard deviation of returns, and coefficient of variation for asset A are (See below.)

Possible Outcomes Probabilities Returns(%)
Pessimistic .25 5
Most Likely .55 10
Optimistic .20 13

A) 9.33 percent, 8 percent, and 2.15, respectively.

B) 10 percent, 8 percent, and 1.25, respectively.

C) 9.35 percent, 2.76 percent, and 0.295, respectively.

D) 9.35 percent, 4.68 percent, and 2.00, respectively.

 

Reference no: EM1345690

Questions Cloud

Components needed to start up a firm loan package : Imagine you are a loan officer presented with a loan package from a start-up corporation and one from a well-established corporation.
What is the output level does the marginal cost curve cross : what is the output level does the marginal cost curve cross the average cost curve. Compute her accounting and economic profits.
Find internal rate of return : Shwo Project J has the same internal rate of return as Project K and which of the subsequent statements is correct
What is the water pressure in kpa at the base of dam : Consider an angular motion. If the displacement is given as 250teθ, and the radius r is constant, derive the expressions for the angular velocity θ=ω, angular accelerationα, linear displacements, linear velocitytv, normal accelerationna, and tange..
Calculate the expected value, standard deviation of returns : The expected value, standard deviation of returns, and coefficient of variation for asset A are;
Show the monitor the progress of a project : Project monitoring - Explain what methods can be used to monitor the progress of a project - which is why it is crucial to have an early warning monitoring system.
Illustrate what is the relation between marginal benefit : Illustrate what is the relation between marginal benefit and marginal cost at this level of the control variable.
Explain and discuss loan factors : An effectively organized loan application decrease the time spent waiting for a response to a loan request. According to John Nelson III, SCORE counselor in Rhode Island & vice president of a major United State bank,
Explain strategies that could be used by a project manager : Project Management - Organizational Culture and Human Behavioral Influences - Explain some strategies that could be used by a project manager

Reviews

Write a Review

Corporate Finance Questions & Answers

  Compounding help build wealth over time

Applications & Theory textbook by Cornett, Adair, and Nofsinger provides an introduction to the main concepts of time value of money for single cash flow amount.

  Explain how does the price of these bonds

Explain how does the price of these bonds today compare to the issue price - market rate of interest on these bonds

  Expected dividend and market value of the two firms

Expected dividend and market value of the two firms -What is each firm's expected dividend at the end of the next year and Which firm has the higher market value?

  Valuation of stock through dividend model

Valuation of stock through dividend model - Using Yahoo!Finance, what is MCD's current annualized dividend amount? When was its last quarterly dividend paid?

  Explain sensitivity analysis

What role does this type of analysis play in your work environment or in your home environment and also explain  sensitivity analysis.

  Questions based on time value of money

Multiple choice questions based on time value of money - What is the net change in working capital from 2002 to 2003

  Determine the expected return of portfolio

Determine the expected return of portfolio on the facts narrated - What is the expected return on a portfolio that is equally invested in the two assets?

  Computing the monthly interest rate

You are taking out a 100,000 mortgage loan to be repaid over 25 years in 300 monthly payments

  Preparing financial statements

Preparing Financial Statements,  List and explain investors' motivation for investing in stocks, bonds, preferred shares, and convertibles based on the characteristics of each of these financial vehicles from the risk and income perspective of invest..

  Implementation of financial data in a business

In this course, you have expanded understanding of finance in terms of measures taken & implementation of financial data in a business.

  Leadership practices and approaches

Conduct research on Martha Stewart Omnimedia, focusing on the period when it was most successful. What type of leadership patterns can you discern that would describe the earlier success of Martha Stewart Omnimedia?

  Corporate governance

Corporate governance mechanisms

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