Coefficient of variation for investments

Assignment Help Business Management
Reference no: EM131973246

General Meters is considering two mergers. The first is with Firm A in its own volatile industry, the auto speedometer industry, while the second is a merger with Firm B in an industry that moves in the opposite direction (and will tend to level out performance due to negative correlation).

General Meters Merger with Firm A  General Meters Merger with Firm B

Possible Earnings  Possible Earnings

($ in millions) ($ in millions)

Probability Probability

$ 40    .30     $ 40    .25        

60    .40     60    .50

80    .30     80    .25  

a. Compute the mean, standard deviation, and coefficient of variation for both investments. (Enter your answers in millions. Do not round intermediate calculations. Round "Coefficient of variation" to 3 decimal places and "Standard deviation" to 2 decimal places.)

Merger A Merger B

Mean

Standard Deviation _______ _______

Coefficient of Variation _______ _______

Reference no: EM131973246

Questions Cloud

Describe the communication area that most interests you : COM107 – Introduction to Communication Define and describe the communication area that most interests you and Provide an explanation of why it interests you
Name two kinds of intentional torts : Name two kinds of intentional torts that are based on protection of a person's property?
What is the average receivables balance-receivables turnover : What is the average receivables balance? What is the receivables turnover? Should the firm offer the discount?
What is globalization : what is globalization, what is trading block impacts of polictal and economic and legal and technological
Coefficient of variation for investments : Compute the mean, standard deviation, and coefficient of variation for both investments.
What are some important takeaways from the article : What are some important takeaways from this Harvard Business article, "When unequal pay is actually fair" (By Tim Low)?
Do you see any violations to the sarbanes-oxley act : If so, how could they be resolved? What are the other issues that come up in this fact pattern, analyze and how would you resolve?
What do they add to understanding of corporate performance : What can a bank do today to take advantage of expected increase in interest rates? What do they add to an understanding of corporate performance?
How many shares would be outstanding : If the face value or par value of the stock is $0.10 per share, how many shares each investor would receive? How many shares would be outstanding?

Reviews

Write a Review

Business Management Questions & Answers

  What differences would a manager have to be aware

Describe positive and negative outcomes that can result from societal, political, and cultural differences when managing a corporation in North America, South America, Europe, Asia, Africa, and Australia.

  Explore and evaluate the costs and benefits of fdi

Explore and evaluate the costs and benefits of FDI with respect to your selected country in particular and host economies in general.

  Contract under the statute of frauds

Is this example a valid sales contract under the Statute of Frauds. State why or why not?

  Offbeat ratings in hopes of garnering attention

John Sutherland kept taking trips to the water cooler. He was not going to figure out where he  had  miscalculated  by  continuing  to  stare  at  his  computer  monitor.

  Conclusion of charismatic leadership

Question: Problem with Charismatic Leadership? Conclusion of Charismatic Leadership?

  How would you define a manager

How would you define a manager? How would you define an organization? Please cite your sources. Give an example of a manager and an organization.

  Organizational change describe a change culture in

organizational change describe a change culture in leadership implementationexplain a change that would benefit your

  Discuss a recent decision that you made

Discuss a recent decision that you made (purchase an automobile or home, change jobs, etc.). How did motivation and emotions influence your decision?

  How loss prevention is relevant to hfe

Please read the attached article and answer the following questions: What is loss prevention and what are its elements? Elaborate in less than 500 words. How loss prevention is relevant to HFE? Elaborate and give examples in less than 500 words.

  Reading on the topic of whistleblowing

This week we are reading on the topic of whistleblowing, and a look at NSA Whistleblower Eric Snowden.

  Spending on military good

Autonomous spending is the spending done when no income is coming in. Increased spending on military good while it is a sale to that supplier, it does not necessary lead to an increase in consumption by either businesses or consumers.

  Factors that promote the development of ethical leadership

What is an ethical leader and how do ethical leaders differ from other leaders? What are the factors that promote or hinder the development of ethical leadership in organisations

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