What is the standard deviation of the rate of return

Assignment Help Finance Basics
Reference no: EM132056861

Question: A project has a 0.52 chance of doubling your investment in a year and a 0.48 chance of halving your investment in a year. What is the standard deviation of the rate of return on this investment? (Do not round intermediate calculations. Round your answer to 2 decimal places.) The response must be typed, single spaced, must be in times new roman font (size 12) and must follow the APA format.

Reference no: EM132056861

Questions Cloud

Opportunities for improvement in productivity of warehousing : How might there be opportunities for improvement in productivity of warehousing? What are some reasons why new warehouses might be prohibitively expensive?
Explain why deferred income taxes can be reported : Explain why deferred income taxes can be reported as both an asset and a liability. Is that the case for Google in 2010
Probability distributions play a role in managerial decision : How does the concepts of mean and standard deviations of probability distributions play a role in managerial decision-making?
Compute the gross margin for baxter company : Compute the gross margin for Baxter Company using the following cost flow assumptions: (1) FIFO, (2) LIFO, (3) Weighted Average
What is the standard deviation of the rate of return : A project has a 0.52 chance of doubling your investment in a year and a 0.48 chance of halving your investment in a year.
Describe critical technology components and procedures : Describe encapsulation, encryption, and authentication in virtual private networks (VPNs) and how they support CIA.
Because the distribution of sample means tends to be normal : Because the distribution of sample means tends to be normal, we use z-scores and what else to find probabilities for specific sample means?
How do the programs and products differ from each other : What programs and products are available to help income earners manage the risk of loss of income due to disability? How do these programs and products differ.
Name two requirements needing to be satisfied : Name two requirements needing to be satisfied for a random sample and are they important?

Reviews

Write a Review

Finance Basics Questions & Answers

  Annuity premiums and the investment income

Assume that Jane, now age 41, deposited $12,000 in annuity premiums and the investment income increase the value of her account by $1,000, so its total current value is $13,000. Now assume that she withdraws $4,000 this year. Please explain the ta..

  What were the corporation earnings per share

What were the corporation's earnings per share before the offering? (Do not round intermediate calculations and round your answer to 2 decimal places.

  What retirement plan should addison consider

What retirement plan should Addison consider if he owns a small firm with employees and earns $55,000 per year?

  Foster consolidated is expecting capital rationing

Foster Consolidated is expecting capital rationing to last for the next 3 years. The company's cost of capital is 10%

  Firm balance sheet after payment of the cash? dividend

What would happen to the? firm's balance sheet after payment of the cash? dividend?

  The index is currently 1500 and one contract is for

on july 1 an investor holds 50000 shares of a certain stock. the market price is 30 per share. the investor is

  Declining balance rnethode half-year rules applies

Tlte company acquired a property for $600,000. The building costs are 70% of total value and the balance is land. What is the capital cost allowence for Year 2 if the capital cost allowance is 20% declining balance rnethode half-year rules appl..

  Charge of developing the strategy for an international

Assume you are in charge of developing the strategy for an international company selling products in 50 different countries around the world.

  What is the impact on the equilibrium exchange rate

Assume Euro Area inflation increases relative to U.S. inflation. Define the (nominal) exchange rate as the dollar value of one euro.

  What is concurrent engineering

Describe PLM, ERP, and MES. How do these processes interact with systems engineering management?

  Depreciating the machine using straight-line depreciation

A firm purchased a machine with a life of four years. Depreciating the machine using straight-line depreciation over the four years yields a NPV = -$10. The initial investment was $1000, cost of capital = 15%, and tax rate = 34%. If the firm is allow..

  Exposure to foreign exchange risk

What causes balance sheet (or translation) exposure to foreign exchange risk? How does balance sheet exposure compare with transaction exposure?

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