What about triple in value

Assignment Help Financial Management
Reference no: EM131327831

Assume that the returns from an asset are normally distributed. The average annual return for this asset over a specific period was 17.5 percent and the standard deviation of those returns in this period was 43.89 percent.

What about triple in value? (Do not round intermediate calculations. Enter your answer as a percent rounded to 6 decimal places, e.g., 32.161616.)

Reference no: EM131327831

Questions Cloud

What is the beta of a security with an expected return : What is the beta of a security with an expected return of 12% if Treasury bills yield 6% and the market risk premium is 8%? Security XYZ has a beta of 1.1. The expected market rate of return is stable at 8% and the risk-free rate is 4%. If the realiz..
Company pledges to increase its dividend : Caan Corporation will pay a $2.54 per share dividend next year. The company pledges to increase its dividend by 3.5 percent per year indefinitely. If you require a return of 11 percent on your investment, how much will you pay for the company’s stock..
What is the current yield on the bonds : Assume M Corp bonds have a par value of $1000, a 2.5% coupon, paid 2X per year. These bonds mature in 2 years. Assume a 365 day year. Assume 72 days have passed since the last coupon payment on the M Corp bonds. The bonds are trading at $955. What is..
Identify and analyze aaliyah risk and protective factors : Analyze the case study and review your readings. Respond to the following: Identify and analyze Aaliyah's risk and protective factors for drug use. Describe at least two factors for each. Discuss at least one thing not mentioned in the case study tha..
What about triple in value : Assume that the returns from an asset are normally distributed. The average annual return for this asset over a specific period was 17.5 percent and the standard deviation of those returns in this period was 43.89 percent. What about triple in value?
How would you define what organizational decision making is : TMGT 590 : In your own words, how would you define what organizational decision making is?What are the models of organizational decision making? Which one do you prefer and why?  Explain what is meant by the term "levels of organizational learning?
About the economic order quantity : Fashion Clothier's economic order quantity (EOQ) for dyes is 14,000 units. If the total demand is 196,000 units per period, carrying cost per unit is 25% of inventory value, purchase price is $10, and fixed costs per order is $30, then the total inve..
Find the equation of the tangent line to the curve : Find the equation of the tangent line to the curve y = x2 at x = 1. Show that this line is also a tangent to a circle centered at (8, 0) and find the equation of this circle.
What is the return on portfolio and alpha of portfolio : John's portfolio is made up of A and B with characteristics as shown on the following table. The portfolio has 40% in A and the rest in B. The risk free rate is 2.5%. What is the return on John's portfolio? What is the beta of John's portfolio? What ..

Reviews

Write a Review

Financial Management Questions & Answers

  How did the audited and unaudited financial statement differ

Review the financial statements,located in the Patton-Fuller Community Hospital Virtual Organization. How did the audited and unaudited financial statements differ

  Calculate the present value of deprecation

George bought a piece of equilvalent for 35,000$. The equipment has a useful life of 10 years and a salvage value of 2,000$ at the end of its useful life. Assume that the annual interest rate is 9%. Calculate the present value of deprecation, using t..

  The firm have to issue to receive the needed funds

Gillian Stationery Corporation needs to raise $600000 to improve its manufacturing plant. It has decided to issue a $1000 par value bond with an annual coupon rate of 8.0 percent with interest paid semiannually and a 10 year maturity. Investors requi..

  Basic interest rate swap and futures positions

Suppose that you buy an interest rate cap on three month LIBOR with a two year maturity and simultaneously sell a floor on three month LIBOR with a two year maturity. Ignore the premiums. Draw a profit diagram that indicates when you will gain and lo..

  Deposit money in bank to retire bond issue

Amarua Corp is required to deposit money in a bank to retire a bond issue of $10 million paying its bondholders a coupon rate of 6%. The bank is currently paying 8% on deposited funds. The bond agreement states on the original 30 year bond issue. Ama..

  What is the amount of your monthly repayments

Suppose you enter into a loan agreement to borrow $100,000 to help finance the purchase of a new home. The loan contract specifies a term of 30 years with monthly payments determined at a fixed rate of 6% APR (compounding monthly). What is the amount..

  Evaluate the firms collection system

Accounts receivable management An evaluation of the books of Blair Supply, which follows, gives the end-of-year accounts receivable balance, which is believed to consist of amounts originating in the months indicated. The company had annual sales of ..

  Method of accounting is primarily for internal decision

Which method of accounting is more commonly used by external stakeholders? Then, which method of accounting is primarily for internal decision making? Financial Accounting or Managerial Accounting?

  Does the brokerage house make a profit

A brokerage house purchases an S&P 500 futures agreement for $300,000. On the delivery date, the S&P 500 Index is 575. - Does the brokerage house make a profit?

  Compute earnings per share under the dobermab plan

Mr Katz is in the widget business. He currently sells 2 million widgets a year at $4 each. His variable cost to produce the widgets is $3 per unit, and he has $1,500,000 in fixed costs. Compute earnings per share under the Katz plan. Compute earnings..

  Binomial option pricing model to find value of call option

Use the binomial option pricing model to find the value of a call option on £10,000 with a strike price of €15,000. The current exchange rate is €1.50/£1.00 and in the next period the exchange rate can increase to €2.40/£ or decrease to €0.9375/£. Th..

  Assuming that debt costs and preferred stock costs

Adams Corporation can raise up to $1700 million for investment from a mixture of debt, preferred stock and retained equity. Above $1700 million, the firm must issue new common stock. Assuming that debt costs and preferred stock costs remain unchanged..

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