Determine standard deviation of the expected return

Assignment Help Financial Management
Reference no: EM131905815

Expected Return Risk

Following are three economic states, their likelihoods, and the potential returns:

Economic State Probability Return

Fast growth 0.23 47 %

Slow growth 0.32 22

Recession 0.45 –37

Determine the standard deviation of the expected return. (Round your answer to 2 decimal places.)

Standard deviation %

Reference no: EM131905815

Questions Cloud

What does the doctrine say : What does Minnesota v. Dickerson say about the scope and extent of what an officer can do during a frisk? This case also gives support to the "plain touch".
Compute expected return and standard deviation : Compute the expected return and standard deviation.
The interior rooms are much less expensive : You know that the interior rooms are much less expensive, but that your manager is traveling at the company's expense.
Review problem related to murder : Sherri, who was near bankruptcy, decided to burn her house down and make an insurance claim for the loss. Sherri started the fire, which spread to a neighbor's.
Determine standard deviation of the expected return : Determine the standard deviation of the expected return.
Maximizes paul expected money value : If you were to choose the investment that maximizes Paul's Expected Money Value (EMV), then you should choose __________.
Derive useful suggestions to make the cafe more attractive : It is your task to uncover relationships between the products sold in the café and derive useful suggestions to make the café more attractive
Discuss defenses of Jane if any : The following statute was enacted by State Legislature: It shall be unlawful for any person to be a pedophile. Pedophilia is defined as a condition.
Advantage of sole proprietorship : Which of the following is NOT an advantage of a sole proprietorship? Single taxation Ease of setup Limited liability No separation of ownership and control.

Reviews

Write a Review

Financial Management Questions & Answers

  The growth rate in dividends is expected

Bayou Okra Farms just paid a dividend of $3.85 on its stock. The growth rate in dividends is expected to be a constant 4 percent per year indefinitely. Investors require a return of 12 percent for the first three years, a return of 10 percent for the..

  How much a typical low-skilled worker would earn

Most companies do their high-skilled work during the day shift: The big meetings, the major deliveries, the crucial repair work-all get done during the day.

  Dominant role in capital budgeting decisions

For multihospital systems, scenario analysis has both advantages and disadvantages. Which do you think are the greater? Why should or shouldn't financial analysis play a dominant role in capital budgeting decisions?

  Interest rates in general have changed and yield to maturity

17 years ago, Delicious Mills, Inc. issued 30-year to maturity bonds that had a 8.82 percent annual coupon rate, paid semiannually. The bonds had a $1,000 face value. Since then, interest rates in general have changed and the yield to maturity on the..

  Different segments of the market for launching this product

A firm has developed a new roofing material that also produces electricity from sunlight. Identify different segments of the market for launching this product.

  New machine will increase cash flow

Your company is deciding whether to invest in a new machine. The new machine will increase cash flow by $316,000 per year. You believe the technology used in the machine has a 10-year life; in other words, no matter when you purchase the machine, it ..

  Calculate its current yield

Calculate its current yield. Explain what it means in a few lines.

  Proposed lockbox system can eliminate

Aqua System Inc. expects to have $27,823,700 in credit sales during the coming year. Currently all checks are sent to the home office. A proposed lockbox system can eliminate 1 days of float, releasing funds which, when invested, will earn 5.08 perce..

  Estimate the expected return on the stock

Use the information below to estimate the expected return on the stock of W. M. Hung Corporation.- Long-run average stock return = 10%.

  Net operating working capital behavior

Read the article entitled: Net Operating Working Capital Behavior: A First Look (Hill, M.D, Kelly, G.W., Highfield, M.J. (2014). The results of their research suggested that operating and finance conditions should be considered when evaluating capita..

  Investment in his savings account matured

Alexander's investment in his savings account matured to $5,157.77 at the end of 265 days.

  Sustainable growth rate assuming ending equity is relevant

Scooze Inc. projects a rate of return of equity of 20%. Management plans to pay 70% of earnings as dividends. Earnings this year will be $3.00 per share, and investors expect a 12% rate of return on the stock. Calculate the sustainable growth rate as..

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