User Account

All Pages

What are the standard deviations of returns on stock

Assignment Help Finance Basics
Reference no: EM133120481

Consider the following possible rates of returns on stock A, stock B, and stock C over the next year: What are the standard deviations of returns on stock A, stock B, and stock C? 

State of economy

Probability of state occurring

Return on stock A

Return on stock B

Return on stock C

Recession

0.2

-6%

18%

-5%

Normal

0.5

10%

6%

8%

Boom

0.3

16%

-18%

10%

Reference no: EM133120481

Questions Cloud

Pgi money transfer project : Wift is working on a new PGI money transfer project.
What return do you expect on a portfolio next year : What return do you expect on a portfolio next year that is currently invested 10% in Facebook (Meta) stock (with an expected return of 8.68% ) and 90% in an equ
Determine the weighted average cost of capital : ABC has 1 million shares of common stock outstanding. The current share price is $50 per share. The most recent dividend was $6 and the growth rate is -2%. ABC
Estimate the expected free cash flow to equity : Dionex Corporation, a leader in the development and manufacture of ion chromatography systems (used to identify contaminants in electronic devices), reported ea
What are the standard deviations of returns on stock : Consider the following possible rates of returns on stock A, stock B, and stock C over the next year: What are the standard deviations of returns on stock A, st
How big of a building can you build : How big of a building can you build? Blank 1 (round to the nearest square foot) What is the interest expense per square foot in this budget? Blank 2 (do not inc
Calculate the operating cash flows : Windsor Co. is evaluating the proposed acquisition of a new machine, which can be used for 5 years. This machine is in asset class 9, which has a CCA rate of 30
Calculate the npv of investment : Windsor Co. is evaluating the proposed acquisition of a new machine, which can be used for 5 years. This machine is in asset class 9, which has a CCA rate of 30
Calculate the operating cash flows : Windsor Co. is evaluating the proposed acquisition of a new machine, which can be used for 5 years. This machine is in asset class 9, which has a CCA rate of 30

Reviews

Write a Review

Finance Basics Questions & Answers

  Calculate the coefficient of variation

Hudson Realty is considering a boost in advertising in order to reduce a large inventory of unsold houses. The management plans to make its media decision

  Transaction lacks commercial substance

If this transaction lacks commercial substance, what amount of gain or loss should be recorded on this exchange?

  Compute the portfolio beta

Donald Gilmore has $100,000 invested in a 2-stock portfolio. $75,000 is invested in Stock X and the remainder is invested in Stock Y. X's beta

  Compute the nominal annual interest rate

An engineering firm has to borrow funds to pay your 16 weeks co-op salary for the summer. the firm borrows $500 from a bank that requires them to make a weekly.

  A company issued 100000 shares of common stock with a par

a company issued 100000 shares of common stock with a par value of 1 per share. the stock sold for 20 per share. by

  Profit margin and debt ratio

Assume you are given the following relationships for the Haslam Corporation:

  Baryla inc manufactures high quality decorator lamps

Baryla Inc manufactures high quality decorator lamps in a plant located in Eastern Tennessee. Last year the firm had sales of $100 million and a gross profit margin of 40%. How much inventory can Baryla hold and still maintain an inventory turnover r..

  Explain the theory of normal backwardation

Explain the theory of Normal Backwardation. Explain the expected effects on price relationships and risk premiums. How would you use the theory of Normal.

  What is the yield on a taxable security

what is the yield on a taxable security that would provide the same after-tax yield as the municipal bond)? Please show work, will rate high.

  What is the internal rate of return on this project

Quick Sale Real Estate Company is planning to invest in a new development. The cost of the project will be $23 million and is expected to generate cash flows of $14,000,000, $11,750,000, and $6,350,000 over the next three years.

  Car rental firm is currently renting

A car rental firm is currently renting 800 cars per year. How many cars will the firm be renting in 10 years if the demand for car rentals is expected to increase by 7% per year?

  What is jose expected profit from the soft drink machine

Assume 250 working days in a year and ignore taxes and the time value of money. What is Jose's expected profit from the soft drink machine?

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd