Solution-What is fluorine chemical''s expected return

What is fluorine chemical''s expected return

Reference no: EM131106846

Four analysts cover the stock of Fluorine Chemical. One forecasts a 5% return for the coming year. A second expects the return to be negative 5%. A third predicts a 10% return. A fourth expects a 3% return in the coming year. You are relatively confident that the return will be positive but not large, so you arbitrarily assign probability of being correct of 35%, 5%, 20% and 40%, respectively, to the analysts' forecast. Given these probability what is Fluorine Chemical's expected return for the coming year?

Reference no: EM131106846

Questions Cloud

What is the expected return of the portfolio : Your portfolio has three asset classes. U.S. government T-bills account for 45% of the portfolio, large-company stocks constitute another 40%, and small-company stocks make up the remaining 15%. If the expected returns are 3.8% for the T-bills, 12.3%..

Which investment is less risky based solely : Which investment is less risky based solely on standard deviation? Which investment is less risky based on coefficient of variation? Which is a better measure given that the expected returns of the two investments are not the same?

Involving one of these four construction hazard categories : The assignment is to write a research paper involving one of these four construction hazard categories. You may narrow your topic down to a more specific type of accident within the major category.

Defines average customer service and great customer service : What do You think defines average customer service and great customer service? Describe an example of both

What is fluorine chemical''s expected return : you arbitrarily assign probability of being correct of 35%, 5%, 20% and 40%, respectively, to the analysts' forecast. Given these probability what is Fluorine Chemical's expected return for the coming year?

Calculate the steady-state probabilities of the markov chain : Calculate the steady-state probabilities of the Markov chain shown in Fig. P11.4.

Create a scenario with an area of development lacking : Demonstrate the interdependence of all the areas of development (physical, cognitive, and social) by imagining a persons' behavior with one area missing. Create a scenario with an area of development lacking and describe the possible results. You ..

Did the analyst''s prediction prove correct : An analyst predicted last year that the stock of Logistics, Inc., would offer a total return of at least 10 % in the coming year. At the beginning of the year, the firm had a stock market value of $10 million. At the end of the year, it had a market ..

Western plastic surgery associates : Western Plastic Surgery Associates is planning on opening a cosmetic plastic surgery center in either Honolulu, San Francisco, or Seattle.

User Account

All Pages

What is fluorine chemical''s expected return

Reference no: EM131106846

Reference no: EM131106846

Questions Cloud

Reviews

Write a Review

Finance Basics Questions & Answers

The cash flows from this annuity will be taxed at 28

The company has some unused equipment that it currently

Calculation of debt ratio and total asset turnover

At the current time warren industries can issue 15-year

What is the current price of the common stock using dcf

Calculate the dollar amount of each deposit

What is the operating cash flow based on this analysis

Primary roles of the us federal reserve

Which of the following projects should the company select

You would like to buy a new car in five years for cash the

The organization is planning to implement a company-wide

An older inefficient industrial printer

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT