Determine the standard deviation of the expected return

Assignment Help Financial Management
Reference no: EM132018849

Following are three economic states, their likelihoods, and the potential returns: Economic State Probability Return Fast growth 0.17 21 % Slow growth 0.50 10 Recession 0.33 –21 Determine the standard deviation of the expected return. (Round your answer to 2 decimal places.)

Standard deviation: ____%

Reference no: EM132018849

Questions Cloud

What are arithmetic and geometric returns for the stock : What are the arithmetic and geometric returns for the stock?
Solve for the firm present value of the tax shield : Solve for the firm’s present value of the tax shield
Add leverage and maintain interest coverage ratio : What will be Boogle’s value if you add leverage and maintain an interest coverage ratio of 10%?
Calculate present value of firm tax saving due to new debt : Calculate the present value of the firm’s tax saving due to new debt.
Determine the standard deviation of the expected return : Determine the standard deviation of the expected return.
Identify the firms market value capital structure : Calculate the firm's market value capital structure. Do not round intermediate calculations. Round your answers to two decimal places.
How much will you have after the years : Suppose you save $12000 per year in an ordinary annuity promising you an interest rate of i = 3.5% compounded once per year.
Which one of them would you choose : You can invest in the risk-free security and only one of the risky portfolios. Which one of them would you choose? What if the risk-free rate is 10%?
Would you take advantage of their arbitrage opportunity : Suppose the 6-month forward rate is currently quoted at $0.60/Yen. What would you do to take advantage of ther arbitrage opportunity?

Reviews

Write a Review

Financial Management Questions & Answers

  Most important determinants of its sales effectiveness

The ________ while downloading a Web page is one of the most important determinants of its sales effectiveness

  Which two of the six methods used to evaluate projects

Which two of the six methods used to evaluate projects, and to decide whether or not they should be accepted, do you prefer as a financial manager? Explain why you decided on these two and not the other four. List the perceived deficiencies of the fo..

  What is the most you would pay per share

The dividend for Should I, Inc., is currently $1.9 per share. It is expected to grow at 24 percent next year and then decline linearly to a 6 percent perpetual rate beginning in four years. If you require a 21 percent return on the stock, what is the..

  Break even point for the number of pints

What is the monthly break even point for the number of pints made and sold to the nearest integer? ________

  Zero-coupon bond with face value-what is yield to maturity

A zero-coupon bond with face value $1,000 and maturity of six years sells for $751.22. What is its yield to maturity? (Round your answer to 2 decimal places.) Yield to maturity %. What will the yield to maturity be if the price falls to $735? (Round ..

  Estimate the cost of a 40-kw unit of the same general design

Estimate the cost of a 40-kW unit of the same general design. Include the cost of the $18,000 pre-compressor.

  Analysts estimate that the companys net cash flow increased

Bradbury Breathe Easy Corporation just announced that its net income was lower than last year. Nevertheless, analysts estimate that the company’s net cash flow increased. What factors could explain this inconsistency?

  What is the standard deviation of returns for mutual fund

What is the expected return on the mutual fund? What is the standard deviation of returns for the mutual fund?

  Plot the daily returns for the year 2015

MAN7MFI - Management Finance and Science - Plot the daily returns for the year 2015 (around 250 observations) and calculate the descriptive statistics (mean, mode, median, variance, covariance and frequency distribution). Also comment on the overal..

  What is the four year forward price

An investment asset provides an income of $1 at the end of the first year and at the end of the second year, its spot price is $20 and the risk-free rate for all maturities (with continuous compounding) is 10%. What is the four year forward price? Wh..

  Identify a normal contango market

State the necessary conditions to identify a normal contango market.

  Carrying charges rather than risk lost profits on stock out

Cake is a product of the Chester Company. Chester's sales forecast for Cake is 1,439 in the Americas region. Chester wants to have an extra 10% on hand above their forecasted units in case sales are better than expected. (They would risk the possibil..

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