Evaluate the expected rate of return and standard deviation

Assignment Help Project Management

Reference no: EM1345618

Project Evaluation help

Scenario Analysis. Consider the following scenario analysis:

Rate of Return
Scenario Probability Stocks Bonds

Recession
.20 -5% +14%

Normal economy
.60 +15 +8

Boom
.20 +25 +4

a. Is it reasonable to assume that Treasury bonds will provide higher returns in recessions than in booms?

b. Evaluate the expected rate of return and standard deviation for each investment.

c. Which investment would you prefer?

Reference no: EM1345618

Questions Cloud

Elucidate the federal reserve current view about inflation : Discuss the Federal Reserve's assessment of the current economic activity and financial markets. Elucidate the Federal Reserve's current view about inflation.

Explaining kind of malicious software : What kind of malicious software is this? if username and password are valid return ALLOW_LOGIN else return DENY_LOGIN.

Hedge the currency risk : For most part, the price of oil is denominated in dollars. Suppose you're a French firm that expects to import 42,000 barrels of crude oil in six months.

Essence of crisis management : Describe the five principles of crisis action planning in organizational crisis management.

Evaluate the expected rate of return and standard deviation : Evaluate the expected rate of return and standard deviation for each investment and which investment would you prefer

Potential vulnerabilities in making purchase with debit card : Recognoze any potential vulnerabilities in making purchase with debit card, and which area of CIA triad they apply to.

Effect on the price if systematic risk increase : AKA's stock is currently selling for $11.44. This year the firm had earnings share of dollar 2.80 and the current dividend is $0.68. Earnings are expected to grow 7 percent a year in the foreseeable future.

Describing foreign exchange : Recognize foreign exchange rate data and discuss its impact on your investment decision.

Managing or controling projects : Managing or Controling Projects - In project management, the control process can be replaced with proper standards and guidelines

User Account

All Pages