What is the standard deviation of the rate of return

Assignment Help Financial Management
Reference no: EM132018026

Suppose you have a project that has a 0.5 chance of doubling your investment in a year and a 0.5 chance of halving your investment in a year.

What is the standard deviation of the rate of return on this investment?

The response must be typed, single spaced, must be in times new roman font (size 12) and must follow the APA format.

Reference no: EM132018026

Questions Cloud

What would your ending balance be 10 years after : What would your ending balance be 10 years after the initial $200 deposit was made? (FV)
Identify the equivalent annual annuity : If the required rate of return is 6.50%, what is the equivalent annual annuity?
What is the probability that your return on this asset : The historical average annual return for the asset was 7.5 percent and the standard deviation was 12.5 percent.
Which of the funds has an r-squared that does not make sense : Which of the funds has an R-squared that doesn't make sense given what you know about that measure? Why?
What is the standard deviation of the rate of return : Suppose you have a project that has a 0.5 chance of doubling your investment in a year and a 0.5 chance of halving your investment in a year.
Does the organization embrace diversity : Does the organization embrace diversity? What are the demographics of the organization?
What freedoms are most important to you : What freedoms are most important to you? What freedoms are you willing to give up in an effort to maintain order?
Describe the structure and function of the electoral college : Describe the structure and function of the electoral college. How and when was it created in the U.S.? Why was it created, and by whom?
Compose a list of five flaws that wilson might identify : Compose a list of five (5) flaws that Wilson might identify, based on his perception of a so-called "good" public administration.

Reviews

Write a Review

Financial Management Questions & Answers

  What are the rights of dissenting shareholders

The Trapp Family Lodge, Inc. (TFL), was incorporated in 1962 as a holding company for certain assets of the Von Trapp family, including the Trapp Family Lodge, a resort hotel in Stowe, Vermont, and other assets, including certain royalty rights relat..

  Reviewed the operations of the business carefully

You have recently acquired a franchise for Dunkin’ Donuts. You have reviewed the operations of the business carefully, from marketing to management, from accounting to finance. You have noticed that the store manager does not have a proper inventory ..

  Describe role of correlation in determining portfolio risk

Describe the typical relation between portfolio risk and number of stocks held. Describe the role of correlation in determining portfolio risk.

  Estimate exchange spot rate which will prevail in one year

given the market data which you have available to estimate the exchange spot rate which will prevail in one year?

  Four main factors influence firm financing decisions

Market evidence suggests that four main factors influence firm’s financing decisions.

  Unbiased expectations theory

One-year T-bills currently earn 0.45 percent. You expect that one year from now, one-year T-bill rates will increase to 0.50 percent. If the unbiased expectations theory is correct, what should the current rate be on two-year Treasury securities?

  Offered some securities for sale to public

In March 2015, Daniela Motor Financing (DMF), offered some securities for sale to the public. Under the terms of the deal, DMF promised to repay the owner of one of these securities $1,000 in March 2040, but investors would receive nothing until then..

  Cash will you have from sale once you pay off mortgage

how much cash will you have from the sale once you pay off the mortgage?

  Cost of equity capital-arithmetic and geometric growth rate

Suppose Powers Ltd. just issued a dividend of $2.49 per share on its common stock. The company paid dividends of $1.99, $2.06, $2.23, and $2.33 per share in the last four years. Required: If the stock currently sells for $68, what is your best estima..

  Considering the buyout of an existing publicly traded

For this discussion, assume that you are an investor and considering the buyout of an existing publicly traded company. There are several areas you plan to focus on during your due diligence process in order to determine the organization's potential ..

  Calculate the arithmetic return and geometric return

You are given the returns for the following three stocks: Year Stock A Stock B Stock C 1 14 % 14 % −19 % 2 14 14 34 3 14 22 37 4 14 7 14 5 14 13 4 Calculate the arithmetic return, geometric return, and standard deviation for each stock.

  Explain the difference between debt and equity

Explain the difference between debt and equity in your own words. Please be as specific as possible.

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