Calculate the upper range of confindence interval

Assignment Help Financial Management
Reference no: EM131996471

A stock has an expected return of 5.4% and a standard deviation of 19.7%.

What is the 68%, 95%, and 99% confidence interval for this stock? (Show your answer to the nearest 3 decimals)

Upper range of 68% confindence interval = ______________

Lower range of 68% confindence interval = _____________

Upper range of 95% confindence interval = _____________

Lower range of 95% confindence interval = _____________

Upper range of 99% confindence interval = ___________

Lower range of 99% confindence interval = ____________

Reference no: EM131996471

Questions Cloud

Find the? p-value at an? alpha-level of alpha : Find the? p-value at an? alpha-level of alpha equals 0.01.
Is there any arbitrage opportunities exist : Is there any arbitrage opportunities exist? If so, what are your arbitrage strategy and your profit in three months?
Evidence to support the claim : A professor claims that the average of scores obtained by Mathematics majors is close to the average of scores obtained by the Computer Science majors.
What is the market risk premium : The returns on the three stocks are positively correlated, but they are not perfectly correlated. (That is, each of the correlation coefficients is between 0 an
Calculate the upper range of confindence interval : What is the 68%, 95%, and 99% confidence interval for this stock? (Show your answer to the nearest 3 decimals)
Average salary of substitute teachers in new york : A random sample of ten school districts is selected, and the daily salaries are shown. Is there evidence to support the claim at a = .05?
What is the stocks expected price 4 years from today : A stock is expected to pay a dividend at the end of the year (p_1 = 0.75) and It should continue to grow at a constant rate of 3% a year.
Construct the cie interval : Suppose no claim was made but the researcher is thinking of making a claim using a 95% two-sided confidence interval.
Determining the confidence interval : Suppose that 0 was inside of the 95% confidence interval. From that measure, could you conclude that the water became cleaner?

Reviews

Write a Review

Financial Management Questions & Answers

  Compute the present value in based on wacc

Compute the present value in B based on WACC; so compute WACC. Cost of debt after tax. Cost common.

  How much does the bluebird company need to deposit today

The account pays a 2% rate of return. How much does the Bluebird Company need to deposit today?

  Strategies is the most attractive to the chartist

A chartist believes that Stock Z exhibits price reversals, i.e. if the return was high over the past week it tends to be low over the next five trading days, and vice versa. Over the past week, the price of Stock Z has fallen. Which of the following ..

  Explain liquidity-default risk and maturity risk premiums

Draw a graph of a typical Treasury yield curve and discuss why it usually takes that shape. Explain liquidity, default risk, and maturity risk premiums.

  What would be your total real return on investment

If the inflation rate was 2.4 percent over the past year, what would be your total real return on the investment?

  Find the firm''s free cash flow and calculate the liquidity

determine the firm's free cash flow and calculate the liquidity, activity, debt, profitability, and market ratios for Jaedan industries. Perform a DuPont analysis and compare the firm to the industry ratios (see last table in this sequence). Highl..

  Bank expected liquidity deficit or surplus over next week

John Camey, the money manager of the First State Bank, has estimated that the bank has a 20 percent chance of a liquidity deficit of $700 million, a 30 percent chance of a liquidity deficit of $200 million, a 30 percent chance of a liquidity surplus ..

  Why does a form rejecting agi

Historically, about 1 percent of Form 1040s are audited. Why does a Form 1040 rejecting $31,000 AGI and a standard deduction have much less than a 1 percent chance while a Form 1040 rejecting $912,800 AGI and  $214,790 itemized deductions has a much ..

  Determine weights of each source of capital in structure

Ngala LLC has 5,000 bonds outstanding which are currently priced at $1,200 each. The bonds pay a coupon of 7.6% (paid semi annually) and mature in 7 years. The bonds have a face value of $1,000 each.  Determine (a) the weights of each source of capit..

  What is the bond nominal coupon interest

Their nominal yield to maturity is 9.25%, they pay interest semiannually, and they sell at a price of $850. What is the bond's nominal (annual) coupon interest

  Average Return and TIPS Capital Return

What is the average monthly return? What was the capital gain of the TIPS in dollars?

  What will johnsons incremental return on average investment

Johnson Electronics is considering extending trade credit to some customers previously considered poor risks.

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