Smallest expected gain

Assignment Help Financial Management
Reference no: EM13927575

A stock has an annual return of 11.6 percent and a standard deviation of 47 percent. What is the smallest expected gain over the next year with a probability of 1 percent? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)

Smallest expected gain %

Reference no: EM13927575

Questions Cloud

Time value of money problems : Calculate the present value of the following investment: (a) Future Value: $123,000, (b) Number of Periods: 10, and (c) Interest Rate: 6%. Calculate the future value of the following investment: (a) Present Value: $12,000, (b) Number of Periods: 13, ..
Calculate percentage change in EPS when the economy expands : RAK, Inc., has no debt outstanding and a total market value of $200,000. Earnings before interest and taxes, EBIT, are projected to be $30,000 if economic conditions are normal. Calculate percentage change in EPS when the economy expands or enters a ..
Prepare a material requirements plan for component : One hundred twenty units of end item Z are needed at the beginning of week 7. Prepare a material requirements plan for component C. Take into account that on hand there are 40 units of Z, 70 units of A, 100 units of B, and 30 units of C. Also,
Capital structure weights on a market value basis : Dinklage Corp. has 9 million shares of common stock outstanding. The current share price is $81, and the book value per share is $8. The company also has two bond issues outstanding. What are the company's capital structure weights on a book value ba..
Smallest expected gain : A stock has an annual return of 11.6 percent and a standard deviation of 47 percent. What is the smallest expected gain over the next year with a probability of 1 percent?
Smallest expected loss : Your portfolio allocates equal funds to the DW Co. and Woodpecker, Inc. DW Co. stock has an annual return mean and standard deviation of 13 percent and 42 percent, respectively. Woodpecker, Inc., stock has an annual return mean and standard deviation..
Stock has an annual return mean and standard deviation : Woodpecker, Inc., stock has an annual return mean and standard deviation of 13.0 percent and 50 percent, respectively. What is the smallest expected loss in the coming month with a probability of 2.5 percent?
Eighty units of end item e are needed at the beginning : Eighty units of end item E are needed at the beginning of week 6. Three cases ( 30 units per case) of J have been ordered and one case is scheduled to arrive in week 3, one in week 4, and one in week 5.
The credit spread for this firms ten-year debt : A firm issues ten-year bonds with a coupon rate of 6.5%, paid semiannually. The credit spread for this firm's ten-year debt is 0.8%. New ten-year Treasury notes are being issued at par with a coupon rate of 5%. What should the price of the firm's out..

Reviews

Write a Review

Financial Management Questions & Answers

  Describe how you would respond as a customer

Suppose that your bank imposes the following fees and/ or service charges. Explain the bank's rationale and describe how you would respond as a customer. a. $ 1.50 per item for use of an ATM run by an entity other than your own bank b. $ 4 per transa..

  What is the expected return on a portfolio

A stock has a beta of 1.28 and an expected return of 12.6 percent. A risk-free asset currently earns 4.2 percent. What is the expected return on a portfolio that is equally invested in the two assets? (Do not round intermediate calculations.

  What is the minimum rate of return

You bought a stock last year that grows by 10% every year. You decide that you will both hold onto that stock for another year and sell it, or you will sell it now and buy a different stock. If you are taxed 40% on half (50%) of the profit you make, ..

  Relationship could be influenced by the citizens of country

Who are the major policy makers for the Federal Reserve System and how do they rise to such an influential position? How do these policymakers influence national economic objectives? Refer to Figure 5.1 on page 100 of the textbook. What part of this ..

  What is the gibson paradox and fisher equation

Show the Interest rate equation and explain all the risk premiums embedded in the equation. What is the Gibson paradox?. What is the Fisher equation?.What is the relationship between these two concepts?

  N annuity is defined as series of payments of fixed amount

An annuity is defined as a series of payments of a fixed amount for a specific number of periods. Thus, $100 a year for 10 years is an annuity, but $100 in Year 1, $200 in Year 2, and $400 in Years 3 through 10 does not constitute an annuity. However..

  Paid dividend per share

Could I Industries just paid a dividend of $1.05 per share. The dividends are expected to grow at a 20 percent rate for the next 6 years and then level off to a 5 percent growth rate indefinitely. If the required return is 13 percent, what is the val..

  Charge for depreciation and amortization

Talbot Enterprises recently reported an EBITDA of $8 million and net income of $4 million. It had $1 million of interest expense, and its corporate tax rate was 36%. What was its charge for depreciation and amortization?

  About the invest in stock portfolio

You have $255,000 to invest in a stock portfolio. Your choices are Stock H, with an expected return of 14 percent, and Stock L, with an expected return of 10.6 percent. Required: If your goal is to create a portfolio with an expected return of 12.25 ..

  Deposit at the start of his studies to be able to withdraw

Pete Morton is planning to go to graduate school in a program of study that will take 2 years. Pete wants to have $19000available each year for various school and living expenses. If he earns 7 percent on his money, how much must be deposit at the st..

  Standard deviation of the return on the market portfolio

Suppose the CAPM is true and you observe the following: Beta(i)=2. In a regression of Er(i) on Er(m), the R squared= 0.8 and the idiosyncratic variance of asset (i) is 25%. What is the standard deviation of the return on the market portfolio?

  What is the expected return on the mutual fund

Consider the following capital market: a risk-free asset yielding 1.00% per year and a mutual fund consisting of 65% stocks and 35% bonds. The expected return on stocks is 11.75% per year and the expected return on bonds is 4.25% per year. What is th..

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