Stock expected return and standard deviation

Assignment Help Financial Management
Reference no: EM132005984

A stock will provide a rate of return of either −28% or 32%.

If both possibilities are equally likely, calculate the stock's expected return and standard deviation. (Do not round intermediate calculations. Enter your answers as a whole percent.)

Reference no: EM132005984

Questions Cloud

Big fixed sell the same product in the same market : Firms Little Fixed and Big Fixed sell the same product in the same market and have the same sales of 1 million units.
What is the maximum price you would pay for the bond : If you require an 13 percent rate of return on a bond of this quality and maturity, what is the maximum price you would pay for the bond?
Who holds the bond until maturity : Determine the value of a $1,000 denomination Fulton bond as of April 15, Year 1, to an investor who holds the bond until maturity
Deposited at the end of year into mutual fund : Her investments are deposited at the end of the year into a mutual fund that earns a nominal interest rate of 3% per year with semiannual compounding.
Stock expected return and standard deviation : If both possibilities are equally likely, calculate the stock's expected return and standard deviation.
Projects with capital rationing using profitability index : What is the rule for choosing projects with capital rationing using profitability index? How are net present value and inital rate of return related?
Elaborate on default risk of firm : Elaborate on default risk of a firm. That is, talk about the definition the ratings and the factors which go into the ratings.
Investments in fixed assets are use of cash : An increase in working capital is a use of cash. Investments in fixed assets are a use of cash.
Described the term too big too fail doctrine : Which of the following best described the term "Too big too fail" doctrine

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