Standard deviation of the estimated returns

Assignment Help Finance Basics
Reference no: EM132473475

Stuart Company's manager believes that economic conditions during the next year will be strong, normal, or weak, and she thinks that the firm's returns will have the probability distribution shown below. What's the standard deviation of the estimated returns?

Strong 30% 21.55%

Normal 40% 10.0%

Weak 30% -16.0%

Reference no: EM132473475

Questions Cloud

What is the importance of dissenting opinions : What is the importance of dissenting opinions? Do I listen to and fully understand the point of view of the person expressing a dissenting opinion, especially.
Comparing the old equipment to the new equipment : In evaluating the "relevant" costs, what does your analysis show? Do you recommend that the equipment be replaced or kept ongoing for the next eight years? Why
Calculate eks weighted average cost of capital : Calculate EKS's weighted average cost of capital assuming no taxes and asymmetric information, i.e. Modigliani Miller propositions I and II with no taxes
What are the competitive strengths and weaknesses : What is the resource-based theory of competitive advantage for stakeholder analysis? What are the competitive strengths and weaknesses?
Standard deviation of the estimated returns : Stuart Company's manager believes that economic conditions during the next year will be strong, normal, or weak, and she thinks that the firm's returns
Evaluate whether the financial statements presented comply : Access Jardine Matheson's most recent annual report on the company's. Review the company's consolidated financial statements to evaluate whether the financial
What are fixed costs : At an output level of 17,500 units, you have calculated that the degree of operating leverage is 3.26. The operating cash flow is $78,000 in this case.
What is the landform you would love to travel to : What is the landform you would love to travel to? Why? Based on your research, what do you think your experience visiting the landform will be like?
What is the ear on loan : The monthly payment will be $10,400 and the mortgage term is 30 years. What is the EAR on this loan?

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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