Smallest expected gain over next year with probability

Assignment Help Financial Management

Reference no: EM13928061

A stock has an annual return of 10.4 percent and a standard deviation of 41 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 over next year with probability of 1% = ?

Reference no: EM13928061

Questions Cloud

Under-investment problems refers to the problem : Under-investment problems refers to the problem that equity holders prefer not to invest in positive-NPV projects in highly levered firms because

What is the effective cost of borrowing in this case : Your firm has an average collection period of 27 days. Current practice is to factor all receivables immediately at a discount of 1.7 percent. What is the effective cost of borrowing in this case?

What is the npv of accepting the lockbox agreement : Your firm has an average receipt size of $130. A bank has approached you concerning a lockbox service that will decrease your total collection time by two days. You typically receive 7,200 checks per day. What is the NPV of accepting the lockbox agre..

What is daily dollar return that could be earned on savings : It takes Cookie Cutter Modular Homes, Inc., about six days to receive and deposit checks from customers. Cookie Cutter’s management is considering a lockbox system to reduce the firm’s collection times. What is the reduction in outstanding cash balan..

Smallest expected gain over next year with probability : A stock has an annual return of 10.4 percent and a standard deviation of 41 percent. What is the smallest expected gain over the next year with a probability of 1 percent?

Large non-profit health relief organization : Choice five - your role is as the chief administrative officer of a large non-profit health relief organization. After reviewing the course concepts you will identify several issues that directly connect to the written assignment. You are in the role..

Long-term corporate bonds had an average return : Assume that long-term corporate bonds had an average return of 5.3 percent and a standard deviation of 9.3 percent for a 30-year period. What range of returns would you expect to see on these bonds 68 percent of the time?

After the repurchase how many shares will have outstanding : Luther is a successful logistical services firm that currently has $5 billion in cash. Luther has decided to use this cash to repurchase shares from its investors and has already announced the stock repurchase plan. Currently Luther is an all-equity ..

How much will you have in the account when you retire at age : Starting when you are 20 years old, you deposit $100 a year into an paying 5.50% interest compounded semi-annually. How much will you have in the account when you retire at the age of 65?

User Account

All Pages