What is the standard deviation of number of bonds

Assignment Help Business Management
Reference no: EM132652246

According to a credit rating agency, S&P, the chance that a non-investment grade municipal bond defaults in a given year is 7.5%. Suppose that the default of one municipal bond is independent from other bonds.

What is the standard deviation of number of bonds that default out of 15 non-investment grade bonds?

Reference no: EM132652246

Questions Cloud

Calculate the balance in Investment in Jake : Jake reported net income of $3,000,000 and paid $800,000 in dividends. Calculate the balance in Investment in Jake, reported on Grant's December balance sheet
Find how much willhave in forty years : Find How much will you have in 40 years if you invest $6,000 each year starting today and ending after 40 years? Your opportunity cost of capital is 8%.
Four attributes of liquidity for the financial markets : How do you think the big exchanges' diversification into data services will affect the four attributes of liquidity for the financial markets that they run
Current issues that may affect the future of ihrm : An overview of what the organisation does. What do they produce or create - Analysis of current issues that may affect the future of IHRM
What is the standard deviation of number of bonds : What is the standard deviation of number of bonds that default out of 15 non-investment grade bonds?
Tesla automotive manufacturing company : Tesla a Automotive Manufacturing Company and Risks Management.
Find rate of compound discount : What would P accumulate to at the end of 5 years if it was invested at a rate of compound discount, d (4), that is equal to i (2) (not equivalent to, but equal
Determine the appropriate organizational structure : Determine the appropriate organizational structure displayed in the case. Briefly explain - Explain briefly steps of developing organizational structure
What the present value of some future amount : What is the future value in 10 years of $200 today at an interest rate of 5%? As you increase the discount rate, the present value of some future amount

Reviews

Write a Review

Business Management Questions & Answers

  What are negative effects of illegitimate political behavior

What are negative effects of illegitimate political behavior on victims, such as those described in the above case, what might be some negative effects on the perpetrators?

  Perceive service and expected service to satisfy customers

What support service do buyers of your product/service want and need? How can Sonic manage gaps between perceive service and expected service to satisfy customers?

  Develop a strategy which ensures that team members

Develop a strategy which ensures that team members are actively encouraged and supported and Develop an effective mentoring and coaching strategy for your continuous improvement project that fosters a culture in which every person and team is accou..

  How do you compare and contrast this matrix of choice to bcg

Grand strategy matrix - explain this matrix' advantage and disadvantage and how do you compare and contrast this matrix of choice to BCG?

  Trade-offs related to organizational performance

What impact does this approach have upon logistics costs and manufacturing costs? What are the trade-offs related to organizational performance? Summarize your thoughts in a MS Word (or similar application) document. Your answer should be at least..

  Quart bottles of an imported wine each year

Jill's Job Shop buys the following Part (X-123) for use in its production system. The parts are needed throughout the entire 52-week year.

  Explain the concept of competitive intelligence

Explain the concept of competitive intelligence. - Prepare a memo to your boss at JetBlue Airlines and outline why the organization needs a CI unit.

  Research paper on the rfid standards

Require a 4 page research paper on the RFID standards which apply to supply chain management industry. If there are no specific standards that you think apply to your selected industry then research how an existing RFID standard could be modified ..

  Vehicle for creating shareholder wealth

Place yourself in the position of a manager in a for-profit company, accordingly you need to help address the balance

  Determining the equal opportunity commission

The federal agency, which is deeply involved in civil rights and personal freedom, is the Equal Opportunity Commission (EEOC).

  Examples of variable costs based on rocking chair example

Briefly explain what is meant by the term 'variable cost' and give two examples of variable costs based on the rocking chair example.

  What are international entry strategies

What are international entry strategies? Select and explain five entry strategies that you think would be effective, why?

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