Likely to be associated with the highest level of risk

Assignment Help Financial Management
Reference no: EM131884473

1. Which of the following is likely to be associated with the highest level of risk?

A) US Treasury bills

B) Long-term corporate bonds

C) Long-term government bonds

D) Common stock of the largest companies in the US

E) Common stock of the smallest companies listed on NYSE

2. A stock had returns of 11 percent, -18 percent, -21 percent, 20 percent, and 34 percent over the past five years. What is the standard deviation of these returns?

A) 23.49 percent

B) 24.01 percent

C) 20.21 percent

D) 18.74 percent

E) 20.68 percent

Reference no: EM131884473

Questions Cloud

What is the NPV of the project at current cost of capital : The project will run for 5 years. What is the NPV of the project at the current cost of capital?
What is tax liability after allowable foreign tax credits : Krebs, Inc., a U.S. corporation, operates an unincorporated branch manufacturing operation in the U.K. Krebs, Inc., reports $900,000 of taxable income.
What predetermined oh rate was used during the year : At year-end 2013, Dub's Wind Generator Co. had a $40,000 debit balance, What predetermined OH rate was used during the year
Defined-contribution pension plan : Suppose you have a defined-contribution pension plan. As you go through your working life,
Likely to be associated with the highest level of risk : Which of the following is likely to be associated with the highest level of risk?
Research a topic on gender issues in the us : Are white men and women more accepting of same-sex marriage compared to black men and women?
What is the total value of assets : Assume that US parent company ABC has a subsidiary XYZ in Outer Mongolia. What is the total value of assets
Find the unit cost of the items : Why might the unit cost of those items started and completed during the period differ from the unit cost of all items completed and transferred during.
Does this provision seem to represent good public policy : Why do you suppose the taxes on installment sales are permitted to be deferred? Does this provision seem to represent good public policy?

Reviews

Write a Review

Financial Management Questions & Answers

  Dividends are expected to grow-what is the price of stock

A7X Corp. just paid a dividend of $1.80 per share. The dividends are expected to grow at 21 percent for the next eight years and then level off to a growth rate of 6 percent indefinitely. If the required return is 12 percent, what is the price of the..

  The current rate be on three year treasury securities

what should the current rate be on 3-year Treasury securities?

  What is the length of the cash conversion cycle

Zocco Corporation has an inventory conversion period of 79 days, an average collection period of 40 days, and a payables deferral period of 40 days. What is the length of the cash conversion cycle?  How many times per year does Zocco turn over its in..

  Geometric average growth rate for these dividends

You are looking at the historical dividends of Southern Company. What was the geometric average growth rate for these dividends?

  Assume that the contract value had not increased

Sophia purchased a variable annuity contract with $50,000 purchase payment. Surrender charges begin with 7 percent in the first year and decline by 2 percent each year. In addition, Sophia can withdraw 10 percent of her contract value each year witho..

  How excessive spending prevent effective financial planning

Life Insurance. How does life insurance protect your wealth? Who needs life insurance?- impact of Spending on Financial Planning. Explain how excessive spending can prevent effective financial planning.

  What is the firm level of current liabilities

Ace Industries has current assets equal to $2 million. The company's current ratio is 2.5, and its quick ratio is 2.0. What is the firm's level of current liabilities? What is the firm's level of inventories?

  What is the yield to maturity of the bond today

A corporate bond has a face value of $1,000 and an annual coupon interest rate of 7%. Interest is paid annually. 10 years of the life of the bond remain. The current market price of the bond is $1232. To the nearest 1/100 0f 1 percent, what is the yi..

  Considering expanding into another rural area

A local restaurant owner is considering expanding into another rural area. The expansion project will be financed through a line of credit with City Bank. The administrative costs of obtaining the line of credit are $500, and the interest payments ar..

  Bond the same thing as the required return

Is the yield to maturity on a bond the same thing as the required return? Is YTM the same thing as the coupon rate? Suppose today a 10 percent coupon bond sells at par. Two years from now, the required return on the same bond is 8 percent. What is th..

  Company pledges to increase its dividend

Caan Corporation will pay a $2.86 per share dividend next year. The company pledges to increase its dividend by 3.5 percent per year indefinitely. If you require a return of 10 percent on your investment, how much will you pay for the company’s stock..

  Determine investors after-tax rate of return in investment

An investor bought a racehorse for $1 million. The horse's average winnings were $700,000 per year and expenses averaged $200,000 per year. The horse was retired after 3 years, at which time it was sold to a breeder for $175,000. Assuming MACRS depre..

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