Standard deviation of the rate of return on investment

Assignment Help Financial Management
Reference no: EM131977574

1. Assume you have the following mortgage: Original mortgage = 400,000 Term = 30 years Interest rate = 7% How many months would it take to payoff the mortgage if you added an additional $100 to each normal monthly payment starting with the first payment?

2. Suppose you have a project that has a 0.9 chance of tripling your investment in a year and a 0.1 chance of doubling 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 answers as decimals rounded to 4 places.) Standard deviation

Reference no: EM131977574

Questions Cloud

What is the current worth of the bond : Your parents have discovered a $1,000 bond at the bottom of their safe-deposit box. What is the current worth of the bond (principal plus interest)?
What is the maximum amount you would pay for investment : If you require a 11 percent rate of return on an investment of this sort, what is the maximum amount you would pay for this investment?
Annual returns on the two portfolios is indeed zero : Assuming the correlation between the annual returns on the two portfolios is indeed zero, what would be the optimal asset allocation?
Bonds make semiannual payments-what is current bond price : The bonds make semiannual payments and have a par value of $1,000. If the YTM on these bonds is 5.6 percent, what is the current bond price?
Standard deviation of the rate of return on investment : What is the standard deviation of the rate of return on this investment?
The t-bill fund and each of the two risky funds : A pension fund manager is considering three mutual funds. What is the proportion invested in the T-bill fund and each of the two risky funds?
Calculation of the net present value-internal rate of return : A calculation of the Net Present Value (NPV), Internal Rate of Return (IRR) and Payback Period for projects Aspire and Wolf.
Relationship between the price of the bond and coupon : Write an equation that shows the relationship between the price of the bond, the coupon (in dollars), and the yield to maturity.
Newfoundland-based company specializing in ecotourism : You are a CEO of a Newfoundland-based company specializing in ecotourism.

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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