Probability that the daily rate of return on stock

Assignment Help Business Economics
Reference no: EM131449362

The daily rate of return on a stock is assumed to be normally distributed with mean 0.114 (11.40%) and variance 0.107 (10.70%).

Note: you should do all your calculations using floating point numbers (decimals) rather than percentages.

  1. What is the probability that the daily rate of return on this stock is less than 0.068 (6.80%) (2dp)?

Reference no: EM131449362

Questions Cloud

Pure expectations and liquidity premium theories : Plot and identify each point under both the Pure Expectations and Liquidity Premium theories
How would very low interest rates affect funding position : How would very low interest rates affect the funding position of DB plans?
Peg associated with lower inflation : Why is a fixed exchange rate peg associated with lower inflation? Explain
Create an international sbu intranet-based employee manual : The Final Portfolio Project is a formal report. In this project, you will create an international small business unit (SBU) intranet-based employee manual.
Probability that the daily rate of return on stock : What is the probability that the daily rate of return on this stock is less than 0.068 (6.80%) (2dp)?
Cause a change in the internal rate of return : Determine whether or not changes in the cost of capital could ever cause a change in the internal rate of return (IRR) ranking of two (2).
What was the company depreciation and amortization expense : What was the company’s depreciation and amortization expense?
Probability of any mortgage defaulting : Consider a CDO made up of three made up of three identical mortgages of $1,000.00. Assume that the probability of any mortgage defaulting is p, all defaults are
What is meant by a taylor rule : What is meant by a Taylor rule? What would the Taylor rule call for in the setting of the policy interest rate if inflation were 3 percent,

Reviews

Write a Review

Business Economics Questions & Answers

  Economics assignment

This document contains various important questions and their appropriate answers in the subject field of Economics.

  Demand and supply curves

Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.

  Long-run perfectly competitive equilibrium for the firm

Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..

  Supply and demand diagrams

Explain each of the following using supply and demand diagrams,  With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.

  Case study: fisher-price toys

The case study of the Fisher-Price Toys, Inc., a popular case in basic economics and management from the prestigious Harvard Business School.

  Draw the production possibility curve

Draw the production possibility curve and a. Define consumer surplus and producer surplus.

  Tax revenue

The Australian government administers two programs that affect the market for cigarettes

  Maximize total welfare

How many tickets to sell to maximize total welfare.

  Difference between the cv and the ev

The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled

  Depict von neumann-morgenstern utility index u in a diagram

Depict the von Neumann-Morgenstern utility index u in a diagram

  What is the market solution

What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution

  Calculate gross national product and net national product

Calculate gross national product and net national product

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