Standard deviation of returns of third company share is low

Reference no: EM139416

Q. Suppose that standard deviation of returns on shares of share at 2 various companies is exactly similar. Does this mean that required rate of return will be similar for these two shares? How might required rate of return on share of third company be greater than required rates of return on shares of first 2 companies even if standard deviation of returns of third company's share is lower?

Provide suitable example of three companies with workings out of how third company has greater required rate of return even if standard deviation of returns of third company share is lower.

Reference no: EM139416

Questions Cloud

What is the mass of that sculpture : A rabbit runs in the straight line with a velocity of +1.6 m/s for a period of time, rests for 12 s, and then runs again along the equivalent line at +0.52 m/s for an unidentified amount of time. The rabbit travels the total distance of 1224 m, and i..

What is the new separation between charges : A cube of ice is taken from the freezer at -8.7°C and placed in a 97 g aluminium calorimeter filled with 351 g of water at the room temperature of 20°C. The final situation is observed to be all water at 19°C. What was the mass of an ice cube.

What is the speed of water in the bernoulli river : A 14 g bullet travelling at 247 m/s is fired into a 0.459 kg wooden block anchored to a 100 N/m spring. How far is a spring compressed to the nearest thousandth of meter.

Expect share you select to affect return : Would you expect share you select to affect return that you earn on your portfolio. Go through the method of working out why C is the best option for portfolio.

Standard deviation of returns of third company share is low : Provide suitable example of three companies with workings out of how third company has greater required rate of return even if standard deviation of returns of third company share is lower.

Expected return for benson industries : Find out the expected return for Benson Industries. Find out the average cash conversion cycle for Jolly Roger Company.

Forecasted interest expense on balance of debt : Suppose that all extra debt in the form of the line of credit is added at the ending of year that means that you must base forecasted interest expense on balance of debt at the commencement of year.

Return would you earn if you made investment : If the investment needs the outlay of $400 today,what compound percentage return would you earn if you made investment.

Internally generated funds but desires to secure the loan : Company plans to finance $100,000 with internally generated funds but desires to secure the loan for remainder.

User Account

All Pages