User Account

All Pages

What is the probability of barilaro stock return

Assignment Help Finance Basics
Reference no: EM133062660

Barilaro Ltd is a publicly listed company on the Australian Securities Exchange. Barilaro's annual stock returns are assumed to be normally distributed with a mean of 0.08 and a standard deviation of 0.04.

  1. What is the probability of Barilaro's stock return exceeding 12%? Show all working.
  2. What is the probability of Barilaro's stock return being less than -8%? Show all working.
  3. What is the probability of Barilaro's stock return falling between 9% and 13%? Show all working.
  4. Discuss the disadvantages of assuming that stock returns are normally distributed.
  5. Discuss the difficulties associated with utilising ex-ante measures of risk.

Reference no: EM133062660

Questions Cloud

Determine the expected return of the portfolio : What is the expected return of the portfolio? The expected retum ofthe portfolio is %. {Round to two decimal places.)
Difference between options and futures : Question 1 Explain the derivatives as well as the difference between options and futures.
Continuously compounded semi-annual rate : A bank quotes an interest rate of 9% pa with quarterly compounding. Note that another way of stating this rate is that it is an annual percentage rate (APR) com
What is the current share price : A company expects to pay its first dividend of $1.50 a share in Year 6 with annual dividend increases of 2.8 percent thereafter.
What is the probability of barilaro stock return : Barilaro Ltd is a publicly listed company on the Australian Securities Exchange. Barilaro's annual stock returns are assumed to be normally distributed with a m
What are your monthly payments : You finance the purchase of a car in the amount of $8000. What are your monthly payments if the bank charges you 6.4% compounded monthly for 36 months
Explain the potential strategy : Suppose your firm invested in a callable bond recently when interest rates were high and the bond has three more years to go before the first call date.
Explain the meaning of the var : Assume you have a portfolio consisting of a $400,000 investment in stock A and a $600,000 investment in stock B.
Investing in real estate : As someone who is only in their second year of college, real estate investment isn't all too relevant to me at this moment, despite how interesting it is.

Reviews

Write a Review

Finance Basics Questions & Answers

  Calculate what is the ebit

Once Bitten Corp. uses no debt. The weighted average cost of capital is 5.9 percent. The current market value of the equity is $12 million and the corporate.

  Define and explain a constant maturity swap

An interest rate swap has two primary risks associated with it. Identify and explain each risk.

  What was the volatility of the dividend yield

What was the volatility of the dividend yield? What was the average annual return of the SP500 from 2002-2011 excluding dividends (i.e., from capital gains only)?

  Firm weighted average aftertax cost of debt

The company's tax rate is 35 percent. What is the firm's weighted average aftertax cost of debt?

  What is the equilibrium value of a share of jones inc today

The required return on the cash flows of Jones' dividends is 14% per year. a) What is the equilibrium value of a share of Jones Inc today?

  What is the required rate of returen

Harrison Clothiers' stock currently sells for $32 a share. It just paid a dividend of $1.25 a share (that is, D0 = 1.25). The dividend is expected to grow at a constant rate of 3% a year.

  Weighted average cost of capital

In the spring of last year, Tempe Steel learned that the firm would need to re-evaluate the company's weighted average cost of capital following a significant issue of debt.

  Knowledge of the spl model

How will you use the knowledge of the SPL model to address contemporary leadership problems in your organization

  Why analyze financial statements as an organization how do

why analyze financial statements? as an organization how do financial statements contribute to the decision making

  Analysis of estee lauder

Title of Essay: An analysis of Estee Lauder's increased use of Social Media Marketing

  Discuss the regulatory and macroeconomic factors

Discuss the regulatory and macroeconomic factors that contributed to the credit crunch of 2007-2008.

  Percent interest compounded quarterly

Option A. A 3-year bank term deposit paying 7.67 percent interest compounded quarterly. (Round answers to 2 decimal places.)

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd