What is the expected return and standard deviation

Assignment Help Financial Accounting
Reference no: EM132819638

Question - The returns of United Railroad Inc. (URI) are listed below, along with the returns on Major Application of Technology (MAT). Economy 1 (with probability .15) gives a return of -14% for URI and -9% for MAT. Economy 2 (with probability .25) gives a return of 16% for URI and 11% for MAT. Economy 3 (with probability .30) gives a return of 22% for URI and 15% for MAT. Economy 4 (with probability .20) gives a return of 7% for URI and 5% for MAT. Economy 5 (with probability .10) gives are return of -2% for URI and -1% for MAT. What is the expected return and standard deviation on a portfolio that is 50% URI and 50% MAT?

Reference no: EM132819638

Questions Cloud

What is the journal entry : Question - Vingold, Inc. rented the building for three years to a group of local doctors for $6,000 per month. What is the journal entry
How would employees operate at a high ethical standard : Companies are expected to act ethically and to ensure their employees act ethically as well. However, we know the level of ethics expected is not always the.
Describe the connection between an organization : Describe the connection between an organization and the business plan that is being developing for that organization.
Find journal article online about accounting treatment : Find a journal article online about the proper accounting treatment for support department costs, joint costs, spoilage, or scrap.
What is the expected return and standard deviation : Economy 3 (with probability .30) gives a return of 22% for URI and 15% for MAT. What is the expected return and standard deviation
Discuss about the determination of the wages : For this week's discussion, I want you to think about the concept of comparable work for comparable pay. Most companies provide a job description that details.
Why does hsbc relocate work to its existing hubs : a) HSBC's chief executive is quoted as saying that such moves are essential to the bank's continued success and to help ensure job security for the bank's staff
Prepare a memorandum that justifies the inventory method : You are a financial adviser with a client. Prepare a memorandum that identifies, explains, and justifies the inventory method you recommend that Ms. Dish adopt.
Describe the role consumerism plays in marketing a service : Describe the role consumerism plays in marketing a service. What are the important elements of an effective board of directors?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Prepare entry to allocate the over- or underapplied overhead

Prepare entry to allocate the over- or underapplied overhead. Yarra Fabrication estimates that its manufacturing overhead will be $2,252,800 in year 1.

  What is integrated reporting

Differentiate between traditional financial reporting, Sustainability reporting and Integrated Reporting . What is Integrated Reporting?

  Shares of no-par common stock issued

On January 1, Staff Corporation had 80,000 shares of no-par common stock issued. 5,000 shares are held as treasury stock. The stock has a stated value of $5 per share. During the year, the following transactions occurred. Apr. 1 Issued 12,000 additio..

  What role do standard costs play in controlling operations

What role do standard costs play in controlling the operations of a business? How are standard costs developed for direct materials, direct labor

  Determine the level effective rate of interest

Determine the level effective rate of interest over a three-year period which is equivalent an effective rate of discount 4% the first year, 11% the second year

  What parties arre supporting these changes

What political and social changes are currently on the horizon that will affect the cost of health care? What parties arre supporting these changes and who is opposing them?

  Effect on the company total net operating income

Elbow Corporation uses part B76 in one of its products. The company's Accounting Department reports the following costs of producing the 12,000 units of the part that are needed every year. Prepare a report that shows the effect on the company's tota..

  Prepare a plan for collecting evidence

Provide support (including the use of external citations) for why the method/technique would be useful in the situation. Prepare a plan for collecting evidence

  Find new world net cash flow from operating activities

Compute the amount of New World's cash payments for operating expenses. New World's net cash flow from operating activities for the current year is

  Illustrate what is the company times interest earned ratio

Selected balance sheet and income statement data for Green Tea, Inc., for the year ended December 31, 2011 are below. Illustrate what is the company’s times interest earned ratio?

  Find the amount of the lease receivable to be recognised

Find the amount of the lease receivable to be recognised by Fast Finance Ltd on 1 July 2016. Assume that Fast Finance Ltd can readily.

  Find the net present value and the internal rate of return

Find the net present value (VNP) and the internal rate of return (IRR) from the data Monthly income of 25,000,000 usd with increases of 2% from the third period

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