Calculate the stock coefficient of variation

Assignment Help Financial Management
Reference no: EM132033956

EXPECTED RETURN

A stock's returns have the following distribution:

Demand for the

Company's Products Probability of This

Demand Occurring Rate of Return If

This Demand Occurs

Weak 0.2 (34%)

Below average 0.1 (12)   

Average 0.4 16

Above average 0.2 40

Strong 0.1 47

1.0

A. Calculate the stock's expected return. Round your answer to two decimal places. %

B. Calculate the stock's standard deviation. Do not round intermediate calculations. Round your answer to two decimal places. %

C. Calculate the stock's coefficient of variation. Round your answer to two decimal places.

Reference no: EM132033956

Questions Cloud

How much interest will your friend pay : Your friend purchases a $165,000 house. He is able to make a 20% down payment. How much interest will your friend pay over 30 years to his loan?
Savings for long term goals : Your long-term savings in 10% instead of 2% means a difference of hundreds of thousands of dollars more in your savings for long term goals.
Determine each project payback period : Determine each project's accounting rate of return. Determine each project's payback period.
What is the expected market price of the common stock : What is the expected market price of the common stock after the announcement?
Calculate the stock coefficient of variation : Calculate the stock's expected return. Calculate the stock's coefficient of variation.
Determine the most productive way of deploying capital : There are many different scenarios that we have to determine the most productive way of deploying capital,
How low would the interest rate on the loan : How low would the interest rate on the loan with the compensating balance have to be for you to choose it?
The embodiment of the entrepreneurial spirit : You are the embodiment of the entrepreneurial spirit and want to finance a real estate project costing $1.2 million with a 70% LTV,
Calculate total interest and fees casey one stop : Calculate the total interest and fees Casey’s One Stop can expect to pay on this loan commitment.

Reviews

Write a Review

Financial Management Questions & Answers

  Growth rate indefinitely

Thirsty Cactus Corp. just paid a dividend of $1.50 per share. The dividends are expected to grow at 40 percent for the next 9 years and then level off to a 7 percent growth rate indefinitely. what is the price of the stock today?

  What is the effective annual rate for these bonds

They sell at their $1,000 par value, and are not callable. What is the effective annual rate (EFF%) for these bonds.

  Building is exported to generate no cash flows

A building is exported to generate no cash flows for several years and then generate annual cash flows forever.

  Contemplating replacing current fleet of delivery vehicles

Your company is contemplating replacing their current fleet of delivery vehicles with Nissan NV vans.

  What is the value of a three-year payer swap

What's the value of a three-year payer swap with a notional of $1,000,000 and a fixed rate of 6% (annualized with semi-annual compounding) worth?

  Under the payback method-cash flows for two alternatives

Assume a $6,500 investment and the following cash flows for two alternatives. Under the payback method, which of the following would be concluded?

  What is the cash break-even point

What is the operating break-even point? Is it the point that the firm does not lose money (positive earnings)? What’s the cash break-even point?

  Bonds in order to sell the bonds-with-warrants at par

Warren Corporation’s stock sells for $42 per share. The company wants to sell some 30-year, annual interest, $1,000 par value bonds. Each bond would have 50 warrants attached to it, each exercisable into one share of stock at an exercise price of $47..

  What is corporate governance

What is corporate governance? List five corporate governance provisions that are internal to a firm and are under its control.

  The bond is treated as an original issue discount bond

A newly issued 10- year maturity, 5% coupon bond making annual coupon payments is sold to the public at a price of $810. The bond will not be sold at the end of the year. The bond is treated as an original issue discount bond. What will be an investo..

  Derivatives markets-what is the floor in her strategy

To plant and harvest 20,000 bushels of corn, Farmer incurs fixed and variable costs totaling $33,000 at the time of the harvest. The current spot price of corn is $1.80 per bushel and the six-month interest rate is 4.0%. Farmer bought $1.70 strike pu..

  Calculate the weighted average score for each supplier

Score each supplier's bid using the following scale.Calculate the weighted average score for each supplier.

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