What is the expected percentage return on stock

Assignment Help Finance Basics
Reference no: EM132411057

The stock has a purchase price of $50.00. You forecast that there is a 40% chance that the stock will sell for $70.00 at the end of one year. The alternative expectation is that there is a 60% chance that the stock will sell for $30.00 at the end of one year. What is the expected percentage return on this stock, and what is the return variance?

Reference no: EM132411057

Questions Cloud

Calculate the after-tax cost of debt : a. Project the debt service payment stream. b. Calculate the pretax cost of debt. c. Calculate the after-tax cost of debt, assuming a 34% tax rate.
Develop a paper about the country health delivery system : This course project requires you to select a country (Bahrain) and develop a paper about that country's health delivery system. Your paper will include.
Revenue bond backed by an additional 3 cent tax : The final 45% of the facility will be financed through the issuance of a revenue bond backed by an additional 3 cent tax on cigarettes sold in the city limit.
How mergers and acquisitions have contributed to performance : Evaluate how mergers and acquisitions in the past 5 years have contributed to Caterpillar Inc.'s performance. Assess Caterpillar Inc.'s global strategy.
What is the expected percentage return on stock : What is the expected percentage return on this stock, and what is the return variance?
Calculation of foreign cash flows and npv : Edgar enterprises, a U.S. -based firm, is considering a project in Mexico to produce and sell automobile components. it is a five year project with an initial
Explore and discuss the origins of Organisation Development : Explore and discuss the origins of OD, leading towards contemporary definitions, and covering ideas of learning theory
What is the risk-free interest rate expressed : a. What is the market price of a zero-coupon bond with face value $116 and 1-month maturity? b. What is the risk-free interest rate expressed as an effective
SEB724 Engineering Leadership Assignment : SEB724 Engineering Leadership Assignment Help and Solution, Deakin University - Assessment Writing Service - Perform a detailed risk analysis

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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