What is the expected return of this stock

Assignment Help Financial Management

Reference no: EM131060919

One stock's of Bisko Co., have the following distributions:

State of Probability of Rate of Return

Economy State of Occurrence

strong 0.2000 0.6000

semi-strong 0.2000 0.40000

normal 0.4000 0.1000

Weak 0.2000 -0.40000

What is the expected return of this stock?

What is the standard deviation of this stock?

Reference no: EM131060919

Questions Cloud

Capital gains versus income : Consider four different stocks, all of which have a required return of 20 percent and a most recent dividend of $4.00 per share. Stocks W, X, and Y are expected to maintain constant growth rates in dividends for the foreseeable future of 10 percent, ..

Determine the smallest weight w for which equilibrium : the largest weight W that can be raised if pipe B is slowly rotated counterclockwise while pipes A and C remain fixed

Charge of an international business : Imagine that you are in charge of an international business and are opening a new operation in a specific country. You will need to take into account a number of variables. To complete this assignment, you will need to first select a business (For..

What is the best estimate of the stock current market value : Burke Tires just paid a dividend of D0 = $0.50. Analysts expect the company's dividend to grow by 30% this year, by 10% in Year 2, and at a constant rate of 5% in Year 3 and thereafter. The required return on this low-risk stock is 9.00%. What is the..

What is the expected return of this stock : What is the expected return of this stock? What is the standard deviation of this stock?

Shares outstanding and an equity cost of capital : Tolo Co. plans the following repurchases: $9.6 million in one year, nothing in two years, and $20.3 million in three years. After that, it will stop repurchasing and will issue dividends totaling $26 million in four years. The total paid in dividends..

The growth rate falling off to constant : Janicex Co. is growing quickly. Dividends are expected to grow at a rate of 20 percent for the next three years, with the growth rate falling off to a constant 5 percent thereafter. If the required return is 11 percent and the company just paid a div..

Conduct a literature review that addresses current issues : Topic - Current Business Problem: Talent Gap/Management Faced By Australian Companies. Conduct a literature review that addresses current issues in research methods

Determining the implementation of the technology : While initially the focus was on implementation of the technology, it was found that success will require at least 10 hours of training over two days for all managers across the country on both the use of the new platform as well as a host of new ..

User Account

All Pages