Expected return and standard deviation of security

Assignment Help Accounting Basics
Reference no: EM13116119

Given the following probability distribution, what is the expected return and the standard deviation of returns for security J?

state 1, probability 0.2, expected return 10%

state 1, probability 0.6, expected return 15%

state 3, probability 0.2, expected return 20%

a. 15%; 6.50%

b. 12%; 5.18%

c. 15%; 3.16%

d. 15%; 10.00%

e. 20%; 5.00%

Reference no: EM13116119

Questions Cloud

Explain ethical and legal environments : This analysis will an opportunity for you to compare and contrast and critically assess the impact on management decision making based on the differences in political, social, ethical, and legal environments.
Description of investment : A corporation may obtain a machine by leasing it for six years (the useful life), paying an annual fee of $3,000, or by purchasing it for $12,000.
How many moles of pottasium nitrate must be heated : Potassium nitrate decomposes on heating, producing potassium oxide and gaseous nitrogen and oxygen: 4KNO3(s)→ 2K2O(s) + 2N2(g) + 5O2(g)
What type of genetic testing is worthwhile : With the completion of the human genome and the identification of various genes, it may be possible to determine whether an individual has a particular disease.
Expected return and standard deviation of security : Given the following probability distribution, what is the expected return and the standard deviation of returns for security J?
Investment class calculate intervals : Assuming that future returns for the various investment classes are mound-shaped, for each investment class compute intervals that will contain approximately 68.26 percent
Find out coefficient playground slide with an acceleration : Find out the coefficient of kinetic friction between the child and the slide if the slide is inclined at an angle of 29.0 degrees below the horizontal.
Find the estimated index of satisfaction for a person : What is the estimated index of satisfaction for a person who first married at 18, has an annual income of $26,500, has three children living, has assets of $156,000.
Length of receivables conversion period : Last year Bizmart had credit sales of $32 million and a net profit margin of 8%. If Bizmart had accounts receivable of $4.5 million, what was the length of the receivables conversion period?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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