Expected value of a prize in the game

Assignment Help Finance Basics
Reference no: EM131559834

1. The probability of winning a $ 50 prize is 40%, and the probability of winning a prize of $ 100 is 60%. What is the expected value of a prize in the game?

2. The probability of winning a $ 50 prize is 40% and the probability of losing a prize of $ 50 is 60%. What is the expected value of a prize in the game?

3. Use the following table to calculate the expected return on the asset.

Ri-Pi

0.10 0.25

0.20 0.50

0.25 0.25

4. Use the following table to calculate the expected return on the asset.

Ri-Pi

0.05 0.10

0.10 0.15

0.15 0.5

0.25 0.25

5. Estimate the expected performance if you know the following data

Pi Ri

0.25 0.2

0.5

0.25 0.4

6. You purchased a stock of MSJ, Inc. The purchase price of the asset is $ 25.00. You have reviewed your market price at the end of each month from January (purchase date) until March. Its total yield has been 25%, 20% and 25%, respective to each month. He expects the shares to behave in the same way over the next three months, therefore, he is assigned a probability of 35%, 30% and 35% respectively. The expected return on the asset would be ________.

7. With the data of the previous problem the variance is ________.

8. Applying the data from the previous problem, the risk would be ________.

9. With respect to the above problem, the dispersion of the asset is between ________.

10. With a dividend of $ 3.00 per annum, stock market price $ 10.50 and purchase price of $ 13.00 the cash flow yield would be _______.

Reference no: EM131559834

Questions Cloud

Discuss the effect of batericide on bateria : EFFECT OF A BACTERICIDE ON BACTERIA In the following figure, f(t) gives the population P1 of a certain bacteria culture at time t after a portion.
What just the minimum selling price : if the holder wishes to obtain a 12% rate of return, what just the minimum selling price?
Allow people to register for an account : Having just learned about sessions and simple authentication, we are ready to add these features to our Q&A forum from Lab.
Explain how contingency decision-making framework can be use : Explain how contingency decision-making framework can be used to recommend the best organizational structural response to environmental uncertainty.
Expected value of a prize in the game : The probability of winning a $ 50 prize is 40%, and the probability of winning a prize of $ 100 is 60%. What is the expected value of a prize in the game?
What can you say about the positions of the cars : The position of car A and car B, starting out side by side and traveling along a straight road, is given by s = f(t) and s = g(t), respectively.
Explain the significance of values-based leadership : Discuss the significance of values-based leadership to the culture of an organization. How is the leader essential in communicating organizational values?
Compounding factors versus simple interest : In which account would the bank apply quarterly compounding factors versus simple interest?
Estimate the rate of change of the crop yield : CROP YIELD Productivity and yield of cultivated crops are often reduced by insect pests. The following graph shows the relationship between the yield.

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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