What is the approximate variance of returns for a security

Assignment Help Financial Management

Reference no: EM13947847

What is the approximate variance of returns for a security if the expected returns are -4.0%, 6.0%, and 15.0%, and the probabilities of occurring are 0.40, 0.30, and 0.30, respectively? A. 470 B. 63 C. 30 D. 961

Reference no: EM13947847

Questions Cloud

Production capacity and research to introduce product line : Medical Research Corporation has been expanding its production capacity and research to introduce a new product line. Current plans call for spending $ 100 million in four projects of the same magnitude ($ 25 million each), but offer different perfor..

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?

Find the optimal capacity of the unit train : Dulles Electric Company buys 1 million tons of coal annually to burn at its power plant. The company wants to invest in a unit train that will haul coal from the mine to the power house, where it is dumped in a large field. Find the optimal capacity ..

What is the approximate variance of returns for a security : What is the approximate variance of returns for a security if the expected returns are -4.0%, 6.0%, and 15.0%, and the probabilities of occurring are 0.40, 0.30, and 0.30, respectively? A. 470 B. 63 C. 30 D. 961

Difference between contribution approach income statement : What is the difference between a contribution approach income statement and a multistep income statement? Go online, find an income statement for a publicly traded company, and identify which approach it is. Provide a link to the income statement

Financial career options that an individual : Describe two (2) financial career options that an individual with a finance education might pursue and explain the value that such a position adds to a company. Explain the essential skills that would make a person successful in each of the described..

Firm is considering an investments net present value : Your firm is considering an investment that will cost $920,000 today. The investment will produce cash flows of $450,000 in year 1, $270,000 in years 2 through 4, and $200,000 in year 5. The discount rate that your firm uses for projects of this type..

What is the before tax cost of debt : A firm has 20 year $5 million of debt which was acquired 2 years ago and is currently selling at 115% of par value. The debt has a coupon rate of 7% and the current tax rate is 35%. What is the before tax cost of debt? A. 7.00% B. 5.72% C. 5.65% D. 3..

User Account

All Pages