State of economy security return

Assignment Help Financial Management
Reference no: EM131130640

Use the following information on states of the economy and stock returns to calculate the standard deviation of returns. Assuming that all three states are equally likely. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Omit the "%" sign in your response.) State of Economy Security Return If State Occurs Recession –6 % Normal 10 Boom 19 Standard deviation %

Reference no: EM131130640

Questions Cloud

Use the renewal equation to find the distribution : Use the renewal equation to find the distribution of the random variables τk, taking their values in the interval [0,π/2], of a renewal process for which
Develop your interpretation using both the film : Develop your interpretation using both the film and the play. do you think Romeo and Juliet is just a love story, or more then that(politics )? write one page essay?
Submit your entire synthesis draft to this discussion : please submit your entire synthesis draft to this discussion. - how communication through technological innovations has helped the Millennials and older generations.
Identify possible economic policies that may explain : Identify possible economic policies that may explain these items and/or those which could be used to deal with the problems or situations described.
State of economy security return : Use the following information on states of the economy and stock returns to calculate the standard deviation of returns. Assuming that all three states are equally likely. State of Economy Security Return If State Occurs Recession –6 % Normal 10 Boom..
A birth and death process with state space : Let {X(t), t ≥ 0} be a birth and death process with state space {0,1,2} and having the following birth and death rates: λo= λ1 = λ > 0, μ1 unknown, and μ2 = μ1 > 0. For what value(s) of μ1 is the process regenerative? Justify.
Why did you choose to participate in these activities : Are you involved in any civic engagements or volunteer activities in your community? Name them. Why did you choose to participate in these activities? OR Why haven't you become involved in community events and volunteer opportunities?
What is the nature and purpose of criminal law : What is the nature and purpose of criminal law? In your response, identify commonalities of purpose within law enforcement, corrections, the courts, and social services.
The poisson process over the entire real line : (c) Suppose now that we consider the Poisson process over the entire real line, that is, {N(t),t ∈ R}. What then is the distribution of A(t) + D(t)?

Reviews

Write a Review

Financial Management Questions & Answers

  What is the expected price of the stock at the end of year

SAS Co. will be paying a dividend of $.80 at the end of this year that will grow by 4% per year for the next 5 years. After the 5 year period the dividend is expected to grow 3% for the foreseeable future. What is the value of the stock today (r= 9%)..

  1what factors affect a firms degree of transaction exposure

1.what factors affect a firms degree of transaction exposure in a particular currency? for each factor explain the

  What is the standard deviation of the rate of return

A project has a 0.78 chance of doubling your investment in a year and a 0.22 chance of halving your investment in a year. What is the standard deviation of the rate of return on this investment?

  What is the net cash flow of the project for the years

Cochrane, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $2,640,000. The fixed asset falls into the three-year MACRS class (MACRS Table). Assume that the tax rate is 35 percent and the requi..

  Calculate the standard deviation of returns-expected return

Valley Fruit Limited is currently assessing the riskiness of the market with an intention of investing. The company currently has excess cash on its balance sheet to invest. Senior management wants to invest the excess cash. Calculate the expected re..

  Considering the purchase of new parking system

A small town in Ohio is considering the purchase of a new parking system that would enhance the collection of parking fees while providing additional convenience to shoppers. The hardware requires an immediate outflow (an investment today) of $1350.

  How would the minimum yearly cash inflow change

Breakeven cash inflows The One Ring Company, a leading producer of fine cast silver jewelry, is considering the purchase of new casting equipment that will allow it to expand its product line. The up-front cost of the equipment is $750,000. How would..

  Standard deviation of returns for this investors portfolio

An investor plans to invest 75 percent of her funds in the common stock of GAmma Industries and 25 percent in Epsilon Company. The expected return on GAmma is 12 percent and the expected return on Epsilonis 16 percent. Determine the standard deviatio..

  Bond makes its coupon payments annually

A 20-year bond of a firm in severe financial distress has a coupon rate of 13% and sells for $945. The firm is currently renegotiating the debt, and it appears that the lenders will allow the firm to reduce coupon payments on the bond to one-half the..

  Security beta total market value

Nero Violins has the following capital structure: Security Beta Total Market Value.  What is the firm's asset beta? Assume that the CAPM is correct. What discount rate should Nero set for investments that expand the scale of its operations without ch..

  The company expects its dividends to grow

A company is growing and doesn't expect to initiate dividents for 10 years, at which time it will pay an annual dividend of $5 per share. At that time, the company expects its dividends to grow at 6% forever. What is the most you would pay today for ..

  Whats the value of share of firm

What’s the value of a share of a firm that is promised to pay a constant dividend of $3 per share forever, starting from a year from now, assuming the required rate of return is 8%?

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