User Account

All Pages

Calculate the investment expected rates of return

Assignment Help Accounting Basics
Reference no: EM133088528

Question - "By investing in different securities, an investor can lower his/her exposure to risk". Do you agree with this statement? Use your own words and example to support your answer.

Puan Fatimah is thinking of adding one of two investments to an already well-diversified portfolio. The following are possible rates of return:

Probability of occurrence

Rates of return

Security Utara

Security Selatan

0.10

-10%

-6%

0.20

5%

9%

0.30

7%

30%

0.40

25%

15%

Calculate the investment's expected rates of return and its standard deviation. From the calculation, which one of the investments is the better choice for Puan Fatimah? Explain your answer.

Reference no: EM133088528

Questions Cloud

Should the company accept this special order : Wati Corporation has received a request for a special order of 6,000 units of product K19 for RM32.30 each. Should the company accept this special order
How many units must be sold under the new proposal : If the company wants to earn an after tax income of $201,600, how many units must be sold under the new proposal
How current global pandemic has impacted us as consumers : Note: For each answer you give, you are required to not only explain your answer, but to indicate which key concepts from our course are applicable.
Assignment on global institutions : Global institutions in recent years have never been more important since their inception and yet they have never been under greater stress in their efforts to m
Calculate the investment expected rates of return : Puan Fatimah is thinking of adding one of two investments to an already well-diversified portfolio. Calculate the investment expected rates of return
Preserving the heritage well-being : What is an example of an event preserving the heritage well-being as well as conservation of resources?
Describe the balanced scorecard : 1. What activities does Philips undertake as gestures of Corporate Social Responsibility? How do these impact the stakeholders?
Create a successful succession plan : What is the role of succession planning and how to create a successful succession plan?
Did all team members participate sufficiently : 1. Did all team members participate sufficiently, i.e. did each person on the team pull his or her own weight? Y N If not, which team member contributed insuffi

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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