State of economy probability of state of economy stock

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1. Project L costs $47,891.14, its expected cash inflows are $11,000 per year for 9 years, and its WACC is 11%. What is the project's IRR? Round your answer to two decimal places.

2. Calculate the standard deviation of the returns of Stock A shown below: State of Economy Probability of State of Economy Stock A Return Boom 0.30 40% Good 0.40 20% Poor 0.20 5% Bust 0.10 -30%.

3. You bought an asset for $92.70. A year later, you received an income of $11.60 and sold the asset for $88.20. Calculate your capital gain yield.

Reference no: EM131905976

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