What is the standard deviation of the return on asset

Assignment Help Financial Accounting
Reference no: EM132595912

The returns of two asset under four possible state of nature are given below

State of nature            Probability            Return on Asset 1                    Return on Asset 2

1                                  0.1                          5%                                    0%

2                                   0.3                         10%                                  8%

3                                   0.5                           15%                               18%

4                                    0.1                            20%                             26%

Question a) What is the standard deviation of the return on Asset 1? What is the Standard deviation of the return on asset 2 ?

Question b) What is the covariance between the returns on asset 1 and asset 2

Question c) what is the co-effcient of correction between the returns on asset 1 & assets 2

Reference no: EM132595912

Questions Cloud

Different strategies for entering global market : When writing your post, you should consider the four different strategies for entering the global market. What prior research was conducted?
Feasibility of the proposed project a and project b : Evaluate the feasibility of the proposed project A and Project B by using capital budgeting techniques of Net Present value (NPV),
Did Mr Livengood likely have an improper tax motivation : Question - ACCOUNTING ETHICS - Did Mr. Livengood likely have an improper tax motivation for structuring the funding of the storytelling festival in this manner
What is the free cash flow model : What is the free cash flow model to detect the fair price of a stock?
What is the standard deviation of the return on asset : What is the covariance? What is the standard deviation of the return on Asset 1? What is the Standard deviation of the return on asset 2 ?
Tertiary prevention strategies : Select a health problem or condition and identify related primary, secondary, and tertiary prevention strategies.
Concept of time value of money applications : Give 2 real-life examples of the concept of time value of money applications. (Take note that the concept must be clearly explained in both scenarios.)
Why intercompany transactions remain front : Why Intercompany Transactions remain front and center for state tax developments. Intercompany transactions are commonly utilized as a vehicle
How company maintains professionalism in work environment : How that company maintains professionalism in the work environment? Which necessary actions should be taken to further improve ethical practices among employees

Reviews

Write a Review

Financial Accounting Questions & Answers

  Preparing multi-step amp single-step income statements by

preparing multi-step amp single-step income statements by finding out sales amp cost of goods figures.bizkid companys

  Formed a partnership dividing income

Emerson and Dakota formed a partnership dividing income as follows: How much net income should be distributed to Emerson?

  Job order costing system to get the underapplied

How do you formulate manufacturing cost incurred vs. manufacturing cost applied when given all this data for Durham Company who uses a Job order costing system to get the underapplied or overapplied overhead?

  What is the total amount of salaries and employee benefits

What is the total amount of salaries and employee benefits expense that X Corp. would record on its income statement as a result of the employee's bi-weekly

  Determine the depreciation expense should be

Find The depreciation expense for 2020 should be, Accumulated depreciation on this machine at December 31, 2019, was $118,000, using the straight-line method.

  Determining value of ending inventory using product costing

determining value of ending inventory using product costing by split off method.oregon lumber processes timber into

  What is maga inc wacc

Maga's beta is 1,2, risk free rate 2% and the expected market rate is 2% and the expected market rate of return is 12%. What is Maga inc,'s WACC.

  What is the yield to maturity on the company bonds

A company issues bonds at a market price of $925. The face value is $1000. What is the yield to maturity (YTM) on the company's bonds

  How to prepare the journal entry to record issuance

The common stock has a market value of $20 per share, and the preferred stock has a market value of $90 per share. Prepare the journal entry to record issuance

  Discuss the basic accounting problem

Discuss the basic accounting problem that arises in handling each of the Purchase of a plant asset subject to a cash discount situations

  Identify the type of accounting changes

Identify the type of accounting changes and discuss the proper accounting treatment. In past, the company expensed borrowing costs on construction of factory

  Stock redemption transactions

Determine whether each of the subsequent stock redemption transactions will qualify for sale and exchange treatment and getaway redeems 16 of Bonnie's shares for $5,000. Getaway has $26,000 of E&P at year-end and Bonnie is unrelated to Clyde.

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