Determine the coefficient of variation for rate of return

Assignment Help Finance Basics

Reference no: EM13268627

Phoenix Company common stock is currently selling for $20 per share. Security analysts at Smith Blarney have assigned the following probability distribution to the price of (and rate of return on) Phoenix stock one year from now:

Price Rate of Return Probability

$16 -20% 0.25

20 0% 0.30

24 +20% 0.25

28 +40% 0.20

Assuming that Phoenix is not expected to pay any dividends during the coming year, determine the coefficient of variation for the rate of return on Phoenix stock.

Reference no: EM13268627

Questions Cloud

Determine the maximum speed of the mass : A 3.85 kg mass attached to a spring oscillates with a period of 0.355 s and an amplitude of 20.5 cm. find the maximum speed of the mass

How you would support the university mission : Duquesne University of the Holy Spirit is a Catholic University, founded by members of the Congregation of the Holy Spirit, the Spiritans, and sustained through a partnership of laity and religious

Find the total dissipated power when the resistor is same : The power dissipated in the resistor is 62 W when connected to a 10V source. Find the total dissipated power when the same resistor is connected to a 5V source.

Explain why menthone is a good target molecule : Write the reaction under study and explain why menthone is a good target molecule of the peppermint oil.

Determine the coefficient of variation for rate of return : Assuming that Phoenix is not expected to pay any dividends during the coming year, determine the coefficient of variation for the rate of return on Phoenix stock.

What is the density of the rock : You are working on the analysis of rocks brought back from the Moon, What is the density of the rock

Find the power delivered to the motor bt two batteries : Two batteries with 1.8 voltage and 10.5 Ohm internal resistance each are connected in series. This battery pack is used to boot a small electric motor with 275 Ohm resistance. Find the power delivered to the motor.

Calculate the value of the securities to decide : You must calculate the value of the securities to decide whether they are a good investment. What is their present value to you? Round your answer to the nearest cent.

Explain what is the ratio of acetate to acetic acid : A solution is prepared by adding 0.1M acetic acid and 0.01 M ethylamine to water and adjusting the pH to 7.4. What is the ratio of acetate to acetic acid. WHat is the ratio of ethylamine to ethylammonium ion

User Account

All Pages