How would this rank order change

Assignment Help Finance Basics

Reference no: EM13296419

On a risk/return basis, rank order the following asset classes from lowest to highest based on the following data. (a) Small stocks: E(r) = 18.15% and standard deviation = 36.94%; (b) Large stocks: E(r) = 11.50% and standard deviation = 20.14%; (c) US Treasury bonds: E(r) = 5.45% and standard deviation = 8.06%; How would this rank order change if the return for each class [i.e., the E(r)] were each reduced by a 3% inflation factor?

Reference no: EM13296419

Questions Cloud

What is the project net investment outlay in year 0 : The firm's tax rate is 40% and its appropriate cost of capital is 10%, What is the project's net investment outlay in year 0?

Explain reaction between a ketone and an alcohol : Draw the product of the following reaction between a ketone and an alcohol. H3C--CO--CH3 + HO--CH2--CH3 ---H+--> how would you classify the product of the reaction? -alcohol -ketone -hemiacetal -acetal

Draw a time-space diagram depicting the above scenario : The transportation agency would like to determine the maximum spacing of stations to allow trains to arrive no more than 5 minutes apart. 1. Draw a time-space diagram depicting the above scenario

Find the area of each turn of the coil : A generator rotates at 87Hz in a magnetic field of 9.0×10?2T . It has 600 turns and produces an rms voltage of 180V, find the area of each turn of the coil

How would this rank order change : How would this rank order change if the return for each class [i.e., the E(r)] were each reduced by a 3% inflation factor?

Evaluate the molar solubility of calcium oxalate : Calculate the molar solubility of calcium oxalate, CaC2O4, in a solution that has been buffered so that the pH is constant and equal to 4.00. The solubility product for calcum oxalate is 1.7 x 10-9.

Determine the change in the bar thickness of axial load : At an axial load of 23 kN, a 40-mm-wide by 10-mm-thick polyimide polymer bar elongates 2.7 mm while the bar width contracts 0.17 mm. The bar is 240 mm long. At the 23-kN load, the stress in the polymer bar is less than its proportional limit.

Central data corporation and digital : Central Data Corporation and Digital, Inc., are competitors. They form a joint venture to research, de¬velop, and produce new software for a particular line of computers. This joint venture is

Calculate the speed of the three coupled cars : A railroad car of mass 3.0 104 kg moving at 4.00 m/s collides and couples with two coupled railroad cars, What is the speed of the three coupled cars after the collision

User Account

All Pages