Returns distributed uniformly and continuously

Assignment Help Financial Management
Reference no: EM131308879

Suppose stocks X, Y and Z have monthly returns distributed uniformly and continuously. The uniform distributions are between -10% and 10% for stock X, between -12% and 8% for Y and between -5% and 10% for stock Z. A fund manager wants to select a stock with the lowest probability of having returns below -3% given that returns are negative. Which stock will she choose?

Reference no: EM131308879

Questions Cloud

Develop personal and household savings plan : Develop a personal and household savings plan. What savings strategies will you use to improve your financial situation? Explain why you chose each strategy instead of others that you did not choose. How much will you save each month? How much intere..
Write the missing number game program : Write the Missing Number Game Program. You will write a program that will allow a user to play the missing number game.  The game will display a 4 (rows) x 3 (columns) board of numbers that will be predetermined
The yield to maturity of this bond is unchanged : A ten years maturity bond with a coupon rate of 6% is now selling at $977.22. What would be the current yield and capital gain yield for this bond in one year from now assuming the yield to maturity of this bond is unchanged?
Why is it difficult to measure probability of stock falling : Suppose you are in charge of risk management at a large mutual fund. A portfolio manager is considering purchasing a large number of shares in a particular stock. The company whose stock she is considering has only been around for 5 years. Why is it ..
Returns distributed uniformly and continuously : Suppose stocks X, Y and Z have monthly returns distributed uniformly and continuously. The uniform distributions are between -10% and 10% for stock X, between -12% and 8% for Y and between -5% and 10% for stock Z. A fund manager wants to select a sto..
Discuss trade-offs between dynamic and static data structure : CSC310 assignment- Discuss the trade-offs between dynamic and static data structures. What are advantages of and differences between ArrayList, LinkedList, and Vector? Provide examples of how to best implement each of these data structures.
Corporate bond quotes-what is the bonds current yield : You find the following corporate bond quotes. To calculate the number of years until maturity, assume that it is currently January 15, 2016. The bonds have a par value of $2,000. What is the bond’s current yield? What price would you expect to pay fo..
Develop an opening for a presentation : Develop an opening for a presentation- Select two of these methods, and develop effective openings for the same oral presentation.
Principles of organizational development : For the Session Long Project in this class, you will be applying the principles of organizational development to an organization you currently work for or have worked for in the past. For this first SLP,

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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