What is the expected return and standard deviation

Reference no: EM13264845

Denard has two investment opportunities. He can invest in The Sunglasses Company or The Umbrella Company. What is the expected return and standard deviation of each company?

State of the Economy	Probability of the State	Expected Return Sunglasses Company	Expected Return Umbrella Company
Sunny	.50	25%	0%
Rainy	.50	0%	25%

Reference no: EM13264845

Questions Cloud

What is the annual operating cash flow : A 5-year project is expected to generate revenues of $97,000, variable costs of $59,000, and fixed costs of $16,000. The annual depreciation is $9,300 and the tax rate is 32 percent. What is the annual operating cash flow?

Find electric field e2 inside the sphere : A dielectric sphere has radius r = 2 and the material inside the sphere has dielectric constant er2 = 4. THe region outside the sphere where r > 2 is free space and the electric field there is E1=(16r+2+8\phi). Find electric field E2 inside the sp..

What is the cost of common equity capital for the firm : If the current price of Two-Stage's common stock is $21.35, what is the cost of common equity capital for the firm?

What is the potential difference at the given point : An infinite line of charge sits on the z axis in free space. The linear charge density is p = 1C/m. What is the potential difference at point (2,pi/2,4) with respect to point (5,0,1) assuming both points are in cylindrical coordinates.

What is the expected return and standard deviation : Denard has two investment opportunities. He can invest in The Sunglasses Company or The Umbrella Company. What is the expected return and standard deviation of each company?

What is the expected selling price of each bond : Your investment banking firm has estimated what your new issue of bonds is likely to sell for under several different economic conditions. What is the expected (average) selling price of each bond?

What condition is relation in na-nd nd no good approximation : Compensation occurs when a semiconductor is doped with both donor and acceptor dopants. Using the fact that n0p0=ni^2 (mass action law) and p0+Nd=n0+Na (charge neutrality assuming all dopants are ionized)

Determine the work function of the metal : When UV light of wavelength 260nm falls on a metal surface, the maximum kinetic energy of emitted electrons is 1.20eV. What is the work function of the metal

Explain a solution of ammonia and water contains : A solution of ammonia and water contains 1.90×10^25 water molecules and 5.20×10^24 ammonia molecules. How many total hydrogen atoms are in this solution

User Account

All Pages