Standard deviation of rate of return on investment

Assignment Help Finance Basics
Reference no: EM133067956

Suppose you have a project that has a 0.7 chance of tripling your investment in a year and a 0.3 chance of halving your investment in a year. What is the standard deviation of the rate of return on this investment? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places.)

Reference no: EM133067956

Questions Cloud

Calculate her total taxable income : Case Studies of Specific Deductions and Tax Liability - discuss and calculate what amount is allowed as a deduction for the decline in value of the machinery
Disaster recovery planning : Good training techniques are essential to successful training. Discuss the advantages and disadvantages of on-the-job training.
How the global financial crisis affected : Explain how the global financial crisis affected the banks' profitability.
Company view on corporate social responsibility : Research your present or past company's view on corporate social responsibility.
Standard deviation of rate of return on investment : Suppose you have a project that has a 0.7 chance of tripling your investment in a year and a 0.3 chance of halving your investment in a year.
Discuss strategic analysis decisions : Discuss strategic analysis decisions in the next five years, what we need to watch out for in the information technology (IT) field,
What are the total cash flows in year : What are the total cash flows in year 2? Show your answer to the nearest $.01
What is the minimum interest rate : Your sister has just won $300,000 (tax-free) in the state lottery. She's decided to quit her job and devote herself to writing novels for the next ten years, us
What does score tell you about your emotional intelligence : What does your score tell you about your emotional intelligence? How might you improve your ability to recognise emotions?

Reviews

Write a Review

Finance Basics Questions & Answers

  The income statement and the operating section of the cash

the income statement and the operating section of the cash flow statement present a companyrsquos results in very

  Central theoretical framework

Roger Backhouse has written that "In the 1940s and 1950s general equilibrium theory (also termed competitive equilibrium theory) became seen

  Determine yield to maturity and bond price

Many years ago, Castles in the Sand, Corporation issued bonds at face value at a yield to maturity of 7%. Now, with 8 years left until the maturity of the bonds, the corporation has run into hard times and the yield to maturity on the bonds has incre..

  What is joe profit from investment

Suppose the Amazon share price is $2200 on 5/29/2020. What is Joe's profit from this investment?

  What actions do you need to take to speculate in the forward

a. What actions do you need to take to speculate in the forward market? What is the expected dollar profit from speculation? b. What would be your speculative profit in dollar terms if the spot exchange rate actually turns out to be $1.86/£?

  Prepare partial amortization schedule of first 3 months

You want to buy a car and a local bank offered to lend you Rs.1, 440,000 repayable in five years in monthly instalments. The loan would be fully amortized

  Global strategic management-discussion board

Starbucks has certainly maintained a competitive advantage within the coffee industry. Relating this example to either your current or past employer

  Determine the direction funds should flow to the mnc

In each of the following cases, determine the direction funds should flow and the return to the MNC of transferring EUR1,000,000: The German parent has positive funds; the Spanish affiliate has negative funds.

  What is the future value of investment

Every day, for 200 days, Dirk deposits $50 in a bank account. If Dirk's bank pays a daily interest rate of 0.02% what is the future value of his investment?

  Show the tree of cash flows and value the project

Suppose that at date 2 the project can be abandoned at no cost. What does this do to its value?

  Bonds-sinking funds

Gordon company issued $1,000,000 10 year bonds and agreed to make annual sinking fund deposits of $80,000.00. What amount will be in sinking fund at the end of ten years?

  Instructions a assuming that the percentage-of-completion

in 2012 gurney construction company agreed to construct an apartment building at a price of 1200000. the information

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