Calculate the total return and not worry about how

Assignment Help Financial Management

Reference no: EM13243392

Suppose that a security costs $1,500 today. a Calculate the percentage return on the security if the payoff to the security in one year is $1,000, $1,500, $2,000, or $2,500. (Note: This is the total amount returned to the investor, so you may just calculate the total return and not worry about how this is split up between current yield and capital-gains yield.) b If each of the outcomes in part a is equally likely, calculate the expected return on the security. c Calculate the standard deviation of the return on the security. (Again, assume that each of the outcomes in part a is equally likely.)

Reference no: EM13243392

Questions Cloud

Increases in aggregate demand lead to : Which of the following best characterizes changes in the U.S. long-run aggregate supply curve during the past 50 years (taking into account that the economy has acquired better technology)?

Construct a pie chart of relative frequencies : Construct a pie chart of relative frequencies and construct a bar graph of the relative frequencies

According to the profit-maximization goal the firm should : According to the profit-maximization goal, the firm should attempt to maximize short-run profitssince there is too much uncertainty associated with long-run profits.

What if the airline offers refundable business class tickets : In the model for airline seat pricing, we studied the case of non-refundable tickets. What if the airline offers refundable business class tickets. You can buy a business class ticket and return it for a full refund if you do not fly.

Calculate the total return and not worry about how : Suppose that a security costs $1,500 today. a Calculate the percentage return on the security if the payoff to the security in one year is $1,000, $1,500, $2,000, or $2,500.

How does a federal budget deficit affect the economy : What is a government budget deficit How does a federal budget deficit affect the economy Howdoes it affect the level of investment and interest rates How doesit affect the individual consumer

Using ampère''s law find the magnetic field : A very long, hollow cylinder (radius 4.7cm) is formed by rolling up a thin sheet of copper, Use Ampère's law to find the magnetic field outside the cylinder at a distance 6.8cm from the axis

State the pressure of the gas sample will be : A sample of krypton gas at a pressure of 0.621 atm and a temperature of 20.7oC, occupies a volume of 17.2 liters. If the gas is compressed at constant temperature to a volume of 5.62 liters, the pressure of the gas sample will be

If you wanted to measure the amount of income : If you wanted to measure the amount of income households had available after paying personal taxes, which of the following would you use?

User Account

All Pages