What is the expected value of these outcomes

Assignment Help Financial Management
Reference no: EM131551292

1. A project's cash flows have a beta of 1.50, a standard deviation of $300, and a coefficient of variation of 0.35. What is the expected cash flow?

A. $757

B. $857

C. $1,057

D. $957

2. A project has the following projected outcomes in dollars: $240, $320, and $580. The probabilities of their outcomes are 15%, 60%, and 25% respectively. What is the expected value of these outcomes?

A. $388.00

B. $358.00

C. $373.00

D. $418.00

Reference no: EM131551292

Questions Cloud

The project has a positive coefficient of correlation : A project's coefficient of variation is 0.45. The project has a positive coefficient of correlation of 0.30. The expected value is $5,000. What is one standard
Made into a retirement account : Monthly payments of $200 are made into a retirement account.
Explain why a nominal increase in an exchange rate : Explain why a nominal increase in an exchange rate that leaves the point may still have an impact on the profit margins of a MNC.
Annual cost of financing for the franc-denominated bonds : what is the annual cost of financing for the franc-denominated bonds? Which type of bond should Sambuka issue? how do you find the initial cash flows?
What is the expected value of these outcomes : The probabilities of their outcomes are 15%, 60%, and 25% respectively. What is the expected value of these outcomes?
What were the financial incentives for the bank to do this : What were the financial incentives for the bank to do this? What were the regulatory reasons for this behavior?
Current rate be on three-year treasury securities : If the liquidity premium theory is correct, what should the current rate be on 3-year Treasury securities?
Financial analysts forecast limited brands growth rate : Financial analysts forecast Limited Brands (LTD) growth rate for the future to be 12.5 percent. LTD’s recent dividend was $0.95.
Compute the payback statistic for project : Compute the payback statistic for Project B if the appropriate cost of capital is 13 percent and the maximum allowable payback period is three years.

Reviews

Write a Review

Financial Management Questions & Answers

  How was this growth financed

Middleton Clinic had total assets of $500,000 and an equity balance of $350,000 at the end of 2010. One year later, at the end of 2011, the clinic had $575,000 in assets and $380,000 in equity. What was the clinic’s dollar growth in assets during 201..

  Exercise price and expiration date as call option

The current price of a stock is $33, and the annual risk-free rate is 7%. A call option with a strike price of $32 and 1 year until expiration has a current value of $7.20. What is the value of a put option written on the stock with the same exercise..

  Creating a retirement fund-personal finance problem

To supplement your planned retirement in exactly 38 ?years, you estimate that you need to accumulate ?$330, 000 by the end of 38 years from today.

  Trying to determine its cost of debt

Drogo, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 14 years to maturity that is quoted at 104 percent of face value. The issue makes semiannual payments and has an embedded cost of 8 percent annually. Wha..

  Explain two reasons why ipos are frequently undervalued

Explain two reasons why IPOs are frequently undervalued. Who would be able to profit off of undervalued IPOs?

  Bonds are called immediately after call protection period

If the bonds are called immediately after the call protection period, what would be the yield to call (YTC)?

  Calculate covariance between the returns of stock

Given the returns and probabilities for the three possible states listed here, calculate the covariance between the returns of Stock A and Stock B. For convenience, assume that the expected returns of Stock A and Stock B are 0.13 and 0.19, respective..

  What is the annual ocf for this project

McGilla Golf has decided to sell a new line of golf clubs. What is the annual OCF for this project?

  Compute the profitability index

Compute the profitability index if the company's discount rate is 10%. We-Know-Widgets, Inc. is analyzing a project that requires an initial investment of $10,000, followed by cash inflows of $1,000 in Year 1, $4,000 in Year 2, and $15,000 in Year 3...

  Find combined value of kates two funds at the end of year

Find the combined value of Kate's two funds at the end of year 12.

  What is value of bond that matures

What is the value of a bond that matures in 17 years makes an annual coupon payment of $50 and has a par value of $1,000. Assume a required rate of return of 6%

  What is the present value of this growing perpetuity

You are evaluating a growing perpetuity product from a large financial services firm. The product promises an initial payment of $24,000 at the end of this year and subsequent payments that will thereafter grow at a rate of 0.03 annually. If you use ..

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