Standard deviation of the rate of return on investment

Assignment Help Financial Management
Reference no: EM131343630

A project has a 0.76 chance of doubling your investment in a year and a 0.24 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. Round your answer to 2 decimal places.) Standard deviation %

Reference no: EM131343630

Questions Cloud

Calculate the activity coefficients for the acidic : Using the Debye-Hucket equation, calculate the activity coefficients for the acidic and basic forms of bromocresol green, HX- and X2-, for a solution with an ionic strength of u=0.1M.
Expectation of the rate of return on stock : Investors expect the market rate of return this year to be 15.00%. The expected rate of return on a stock with a beta of 1.3 is currently 19.50%. If the market return this year turns out to be 12.80%, how would you revise your expectation of the rate..
Base- forms a water molecule : How many atoms a together are in C4H10? What kind of reaction is between an avid or base- forms a water molecule.
Determine the information requested : Write the balanced equation, then outline the steps necessary to determine the information requested in each of the following
Standard deviation of the rate of return on investment : A project has a 0.76 chance of doubling your investment in a year and a 0.24 chance of halving your investment in a year. What is the standard deviation of the rate of return on this investment?
Investigates the effect of report presentation style : Discuss the necessity for using counterbalancing. Create a table illustrating the experimental design.
Identify the atoms that are oxidized and reduced : Identify the atoms that are oxidized and reduced, the change in oxidation state for each, and the oxidizing and reducing agents in each of the following equations:
Create a timeline of practicum activities based on practicum : Explain what most excites and/or concerns you about pediatric clinical experiences. Include a description of your strengths and weaknesses in terms of working with children and how these strengths and weaknesses might impact your Practicum experi..
Expected cash flows : Expected cash flows: FireRock Wheel Corp is evaluating a project in which there is a 40 percent probability of revenues totaling $3 million and a 60 percent probability of revenues totaling $1 million per year. then what is the expected free cash flo..

Reviews

Write a Review

Financial Management Questions & Answers

  Funds acquired by the firm through retaining earnings

Funds acquired by the firm through retaining earnings have no cost because there are no dividend or interest payments associated with them, and no flotation costs are required to raise them, but capital raised by selling new stock or bonds does have ..

  The terms of the line of credit called

On January 2, 20X1, Uptown Hospital established a line of credit with First Union National Bank. The terms of the line of credit called for a $400,000 maximum loan with an interest rate of 3 percent. The compensating balance requirement is 5 percent ..

  What was the cost per light fitting produced

Wyre Electrical manufactures identical light fittings in batches of 40. During November, Wyre Electrical produced 1,327 batches. The total cost incurred in November were (£): What was the cost per light fitting produced in November? If customers are ..

  Balance sheet is principally current market value

The valuation basis of the Balance Sheet is principally current market value.___ ‘Retained Earnings’ reflects cumulative net income kept in the business.___ Current Liabilities are obligations due to be paid within a year of the Balance Sheet date.__..

  The book is financial management for public health and

the book is financial management for public health and not-for-profit organization third edition by steven a.

  Contrast the gain and loss potential for investors holding

Compare and contrast the gain and loss potential for investors holding the following positions: long forward, short forward, long call, short call, long put, and short put. Indicate what the terms symmetric and asymmetric mean in this context.

  Leasing is very common practice with expensive

You work for a nuclear research laboratory that is contemplating leasing a diagnostic scanner (leasing is a very common practice with expensive, high-tech equipment). The scanner costs $5,800,000, and it would be depreciated straight-line to zero ove..

  What is the appropriate cost of capital for a project

The risk-free rate is 6%. The expected rate of return on the stock market is 10%. - What is the appropriate cost of capital for a project that has a beta of -2?-  Does this make economic sense?

  About the portfolio beta

You own a stock portfolio invested 10 percent in Stock Q, 35 percent in Stock R, 20 percent in Stock S, and 35 percent in Stock T. The betas for these four stocks are .75, 1.90, 1.38, and 1.16, respectively. What is the portfolio beta?

  About gross and net patient sdervice revenue

Which of the following statements about gross and net patient sdervice revenue is most correct?

  Ensure an annual retirement income

Starting with your current situation, what must you do to ensure an annual retirement income of $75,000 starting at age 65? Make sure that you submit time value of money calculations that support the conclusions

  What is the total amount issuer will receive from auction

Swenson Markets would like to sell an additional 1,000 shares of stock using a Dutch auction. However, every bidder will pay the price of the last bidder to receive any shares. In other words, everyone will pay the lowest price of all successful bidd..

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