Standard deviation of Euro percentage changes

Assignment Help Financial Management

Reference no: EM13917342

If the standard deviation of Euro percentage changes is 10% annualized, what is the appropriate standard deviation to use for assessing the risk on a 1-month investment? Next, assuming an expected percentage appreciation for Euro of 3% per year (0.25% per month), what is the probability that Euro will appreciate more than 5% in 1 month? What about the probability that it will depreciate by more than 5%?

Reference no: EM13917342

Questions Cloud

Reasonable costs of capital for average-risk-high-risk : Distinguish between beta (i.e market) risk, within-firm ( i.e, corporate) risk, and stand-alone risk for a potential project. Of the three measures, which is theoretically the most relevant, and why? Suppose a firm estimates its overall cost of capit..

System requires an initial investment in net working capital : Kolby’s Korndogs is looking at a new sausage system with an installed cost of $538,000. This cost will be depreciated straight-line to zero over the project’s four-year life, at the end of which the sausage system can be scrapped for $114,000. If the..

Calculate the Cash Flow DOL for this firm : The law firm of Dewey, Cheatem, and Howe has monthly fixed costs of $98,000, EBIT of $223,000, and depreciation charges on its office furniture and computers of $7,000. Calculate the Cash Flow DOL for this firm.

Standard deviation of Euro percentage changes : If the standard deviation of Euro percentage changes is 10% annualized, what is the appropriate standard deviation to use for assessing the risk on a 1-month investment? Next, assuming an expected percentage appreciation for Euro of 3% per year (0.25..

Discuss public transportation in negative-positive : Brief summary of the video clip (no more than two paragraphs) Does the video clip discuss public transportation in negative, positive or neutral terms? Who are the stakeholders in the video clip (what groups/persons/communities are discussed)?

Calculate the accounting operating profit breakeven point : Dandle’s Candles will be producing a new line of dripless candles in the coming years and has the choice of producing the candles in a large factory with a small number of workers or a small factory with a large number of workers. Calculate the accou..

Salvage value-Calculate best-case-worst-case NPV figures : We are evaluating a project that costs $1,180,000, has a five-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 88,100 units per year. Suppose the projections g..

Management is considering changing firms production : The Generic Publications Textbook Company sells all of its books for $100 per book, and it currently costs $50 in variable costs to produce each text. Management is considering changing the firm’s production technology, which will increase the fixed ..

User Account

All Pages