What is coefficient of variation

Assignment Help Financial Management
Reference no: EM13882800

Stock X has an expected return of 0.11. It has a beta estimated at 1, a risk-free rate of 0.03 and a risk premium of 6.1. Its variance of returns is 0.0209. All returns here are expressed as decimals, not percentages. What is its coefficient of variation? Round your answer to two decimal places.

Reference no: EM13882800

Questions Cloud

What corporate governance functions are missing at arbol : What corporate governance functions are missing at Arbol? Be specific and describe the facts of the case and their relevance to corporate governance.
The effect of the law diminishing returns : Kelson Electronics a manufacturer of DVRs, estimates the following relation between its marginal cost of production and monthly output: MC=$150+0.005Q A. What does this function imply about the effect of the law diminishing returns on Kelsons short-r..
Initial fixed asset investment : Consider a four-year project with the following information: initial fixed asset investment = $450,000; straight-line depreciation to zero over the four-year life; zero salvage value; price = $26; variable costs = $16; fixed costs = $140,000; quantit..
Determine the cost of goods sold : 1.Causwell Company began 2013 with 10,000 units of inventory on hand.
What is coefficient of variation : Stock X has an expected return of 0.11. It has a beta estimated at 1, a risk-free rate of 0.03 and a risk premium of 6.1. Its variance of returns is 0.0209. All returns here are expressed as decimals, not percentages. What is its coefficient of varia..
Provide an example of an environmental tax : 1.Provide an example of an environmental tax or marketable permit instrument that has been used in Canada. Evaluate the instrument in terms of its efficiency (or cost-effectiveness), equity, enforceability, and incentives created for polluters to inn..
List the problems with the existing system at brock : List the problems with the existing system at Brock Identify the relevant information that the production and inventory managers need to accumulate in order to support the decision to automate the conversion process.
Discounted payback period if the required rate of return : A project has an initial cost of $8,700 and produces cash inflows of $2,600, $5,000, and $1,600 over the next three years, respectively. What is the discounted payback period if the required rate of return is 7 percent?
Explain the concept of incremental cash flow analysis : Explain the concept of incremental cash flow analysis and its purpose

Reviews

Write a Review

Financial Management Questions & Answers

  Industrial-sized electrical devices-generators-alternators

The Electrotech Corporation manufactures two industrial-sized electrical devices: generators and alternators. Both of these products require wiring and testing during the assembly process. Each generator requires 2 hours of wiring and 1 hour of testi..

  What will be the value of her retirement account

Carla Lopez deposits $3,000 a year into her retirement account. If these funds have an average earning of 8 percent over the 40 years until her retirement, what will be the value of her retirement account?

  The need to hold cash simply as a financial reserve

A firm grants credit with terms of 2/10, net 40. The firm's customers have ___ days to pay in order to receive a _____ percent discount. Which one of the following is the need to hold cash simply as a financial reserve? Which one of the following wou..

  Acquiring firm assumes all liabilities of the target firm

In a merger, the acquiring firm assumes all liabilities of the target firm. All of the following are true of buyer due diligence except for: Closing is included in which of the following phases of the acquisition process? Integration planning is unde..

  The cost of the low-emission equipment

The cost of the low-emission (replacement) equipment is $50,000 for each of the company’s two existing production lines, totaling $100,000 if the company installed the equipment in both production lines. There do not appear to be additional revenue o..

  How much more is nancys cash flow worth

Mary is going to receive a 34-year annuity of $9,900. Nancy is going to receive a perpetuity of $9,900. If the appropriate interest rate is 12 percent, how much more is Nancy’s cash flow worth (today)? (Enter rounded answer as directed, but do not us..

  Project scoring approach to capital budgeting decisions

A quasi-subjective project scoring approach to capital budgeting decisions:

  Financial planning process after firm develop sales forecast

What is the next step in the financial planning process after a firm develops a sales forecast?

  Why are equity investment returns typically more than bond r

Why are equity investment returns typically more than bond returns? A) Equities are riskier than bonds B) Bonds are riskier than equities C) Bonds pay interest payments   D) Both A & C

  What is the beta of this stock

The common stock of Jensen Shipping has an expected return of 14.7 percent. The return on the market is 10.8 percent and the risk-free rate of return is 3.8 percent. What is the beta of this stock?

  Investment Return-percent return

Investment Return MedTech Corp stock was $51.05 per share at the end of last year. Since then, it paid a $0.55 per share dividend. The stock price is currently $62.60. If you owned 300 shares of MedTech, what was your percent return?

  Calculate the dividend yield on a stock

Calculate the dividend yield on a stock with the following information: (a) Growth Rate: 9%, (b) Price: $36.53, and (c) Dividend: $2.46.

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