Discuss opportunity cost concept as strategic construst

Assignment Help Financial Management

Reference no: EM131904259

1. The average return on a stock is 3.9% and the standard deviation is 3.2%. Assume the return on the stock is normally distributed. With 67% confidence, what is the highest return you would expect to earn on this stock?

2. Explain and discuss the ‘opportunity cost’ concept as a strategic construct. How does opportunity cost relate to the notion of incremental cash flow for a project?

Present an example.

Reference no: EM131904259

Questions Cloud

Market portfolio has expected return-standard deviation : Suppose the? risk-free return is 3.1 % and the market portfolio has an expected return of 9.4 % and a standard deviation of 16 %.

Motives for mergers lead to benefits for society : Some of the motives for mergers lead to benefits for society,

Create portfolio with zero standard deviation : How to mix these two assets to create a portfolio with zero standard deviation?

Should he cash the cd or use the? in-store financing : Antonio would like to replace his golf clubs with a custom measured set. Should he cash the CD or use the? in-store financing?? Why?

Discuss opportunity cost concept as strategic construst : Explain and discuss the ‘opportunity cost’ concept as a strategic construct.

Investor can borrow or lend freely at risk-free asset : Suppose there are N risky assets and one risk free asset. Every investor can borrow or lend freely at the risk-free asset.

Statement of retained earnings night scapes : Statement of Retained Earnings Night Scapes, Corp. began the year 2008 with $12 million in retained earnings.

Weight used for equity in computation : what would be the weight used for equity in the computation of Town Crier's WACC?

Right to drill for crude oil on large piece of land in one : Frodo-Neo Company is currently evaluating the right to drill for crude oil on a large piece of land in one year.

User Account

All Pages