Three stocks by their level of total risk

Assignment Help Financial Management
Reference no: EM132020247

Rank the following three stocks by their level of total risk, highest to lowest. Rail Haul has an average return of 14 percent and standard deviation of 36 percent. The average return and standard deviation of Idol Staff are 17 percent and 32 percent; and of Poker-R-Us are 11 percent and 30 percent.

Reference no: EM132020247

Questions Cloud

Weighted average cost of capital for digital processing : Calculate the weighted average cost of capital for Digital Processing Inc.
Calculate the weighted cost of each source of capital : Calculate the weighted cost of each source of capital and the weighted average cost of capital.
Should the investment be undertaken : Compute the net present value if the cost of capital is 11 percent. Should the investment be undertaken? No
Compute the gain and related tax on the sale : Compute the gain and related tax on the sale if the asset is sold now for $63,060.
Three stocks by their level of total risk : Rank the following three stocks by their level of total risk, highest to lowest.
Calculate net present value : Calculate the net present value.
What depreciation category the asset falls : determine in what depreciation category the asset falls.
What is internal rate of return : What is the net present value at a discount rate of 10 percent? What is the internal rate of return?
What is the initial weighted average cost of capital : At what size capital structure will there be a change in the cost of debt? What is the initial weighted average cost of capital?

Reviews

Write a Review

Financial Management Questions & Answers

  Shares of common stock authorized

Cole Company has 302,000 shares of common stock authorized, 254,000 shares issued, and 67,000 shares of treasury stock. The company’s board of directors has declared a dividend of 76 cents per share. What is the total amount of the dividend that will..

  Calculate best-case and worst-case npv figures

We are evaluating a project that costs $1,120,000, has a ten-year life, and has no salvage value. Calculate the best-case and worst-case NPV figures.

  Receives cash payments prepare bank reconciliation

Describe how bank reconciliation can be used as internal control tool for cash. Also, should same person that receives cash payments prepare bank reconciliation

  1 a competitive hospital maintains current equipment and

1. a competitive hospital maintains current equipment and purchases new in order to stay current with the latest

  Calculate ecos current cost of common stock

At the present time, Eco can raise debt by selling 20-year bonds with a $1,000 par value and a 10.5% annual coupon interest rate.

  Stock with a beta

You bought a stock with a beta of 1.4 and earned a return of 8.3%. Did you outperform the market if, during the same period, the market rose by 7.4% and you could have earned 5.4% by investing in a Treasury bill?

  Ben is property investor

Ben is a property investor. He is choosing between the two properties. Assuming a discount rate of 5%, which property should Ben purchase?

  What return will now be expected on the portfolio

An investor was expecting a 18% return on his portfolio with beta of 1.25 before the market risk premium decreased from 8% to 6%. Based on this change, what return will now be expected on the portfolio?

  Explain how the cash budget and the capital budget relate

Explain how the cash budget and the capital budget relate to pro forma financial statements.

  Value is based on expected future cash flows is determined

How the value of any asset whose value is based on expected future cash flows is determined.

  Operator from removing the piece quickly before producing

The machine "coasts" for 15 seconds after it is turned off, thus preventing the operator from removing the piece quickly before producing the next piece.

  Which production option maximizes expected annual profit

Construct a decision tree to determine which production option maximizes the expected annual profit.

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