Probability range of returns for any one given year

Assignment Help Financial Management
Reference no: EM13940328

A stock had annual returns of 16 percent, 8 percent, -17 percent, and 21 percent for the past four years. Based on this information, what is the 95 percent probability range of returns for any one given year?

Reference no: EM13940328

Questions Cloud

Calculate the total withholding : Calculate dependent deductions at 2.0% of the employee's salary for each dependent.
Compute the per-unit manufacturing cost for job : Compute the predetermined overhead rate. Using the predetermined rate, compute the per-unit manufacturing cost for Job 330.
Explain a drug problem in your community : Explain a drug problem in your community and how you might solve this problem if you were a cop? Who might need to be involved in the process?
Discuss the importance of communication : Discuss the importance of communication, consultation and stakeholder management, with reference to:
Probability range of returns for any one given year : A stock had annual returns of 16 percent, 8 percent, -17 percent, and 21 percent for the past four years. Based on this information, what is the 95 percent probability range of returns for any one given year?
Invest in the money market : Plan to use the savings over the next five years to make a down payment. She needs 15000 in 5 years how much does she need to invest in the money market account semi-annually over the next five years.
Issue of preferred stock outstanding : Moraine, Inc., has an issue of preferred stock outstanding that pays a $6.55 dividend every year in perpetuity. If this issue currently sells for $91 per share, what is the required return?
How much will you pay for the companys stock today : 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..
Discussions of tutorial presentation made : In pairs, students will need to research and present a 20 minute tutorial discussion on a given topic. Students will also be required to participate in discussions of each tutorial presentation made.

Reviews

Write a Review

Financial Management Questions & Answers

  Prepare a statement showing the incremental cash flows

Prepare a statement showing the incremental cash flows for this project over an 8-year period and calculate the payback period (P/B) and the net present value (NPV) for the project.

  Using the formula and financial calculator methods

The Horizon Company will invest $60,000 in a temporary project that will generate the following cash inflows for the next three years. Use Appendix B for an approximate answer but calculate your final answer using the formula and financial calculator..

  What was the net FUTA tax

Truson Company paid 4% SUTA a tax on taxable wages of $108,500. The taxable wages under FUTA were $89,400. What was the net FUTA tax of Truson Company?

  Cheapest overall price

Alejandra wants to buy a new Ford F-150. She sees the following ad: "0% APR financing for 66 months OR Up to $8,000 in total savings." She has negotiated a sales price of $35,000 and she has a $5,000 down payment. She is eligible for the full $8,000 ..

  Calculate benefit reserve at end of ten years for annuity

For a fully continuous 20-year deferred whole life annuity of (1) issued to (35), you are given: Benefit premiums are payable continuously for 20 years. Calculate the benefit reserve at the end of 10 years for this annuity.

  Buckets of money

Julia Price Wants to Drive a BMW It has been almost 15 years since Julia graduated with a major in aeronautical engineering, and now she makes “buckets of money” working as a project manager for a large defence contracting company. While she is not v..

  Considering new three-year expansion project

Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.97 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be w..

  Investors anticipate-what is the current stock price

One year from today, investors anticipate that Groningen Distilleries, Inc, stock will pay a dividend of $3.25 per share. After that, investors believe that the dividend will grow at 20% per year for three years before settling down to a long-run gro..

  The bonds makes no interest payments

Which of the following bonds makes no interest payments?

  What is the amount of the net income

A firm has a return on equity of 15%. The debt-equity ratio is 50%. The total asset turnover is 1.25 and the profit margin is 8%. The total equity is $3,200. What is the amount of the net income?

  Calculate the delivery price of the bond

A 20-year 1000 par value bond pays 4% annual coupons. The bond is priced to yield an annual effective rate of 5%. The continuous compounded risk free rate of interest is 4%. Calculate the delivery price of the bond for a three year forward contract w..

  Invest in certificates of deposit

Raya Mutual Fund of Kuala Lumpur has RM5 million to invest in certificates of deposit (CDs) for the next six months (180 days). It can buy either a CIMB Bank CD with an annual yield of 10% or a Mumbai (India) Bank CD with a yield of 12.5%. Determine ..

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