What is the standard deviation on investment

Assignment Help Financial Management
Reference no: EM131581169

Your investment has a 30% chance of earning a 10% rate of return, a 40% chance of earning a 23% rate of return and a 30% chance of earning -7%. What is the standard deviation on this investment? (Put your answers in decimal points instead of percentage)

Reference no: EM131581169

Questions Cloud

How much would the bond price change : how much would the bond's price change? If the interest rates decrease by 1 percent, by how much would the bond's price change?
What is the new consumer surplus : Suppose the maximum willingness to pay for a new iPhone by the different consumers in a market is given in the table below.
Strategies that management may use to motivate employees : Using Maslow hierarchy of needs suggest four strategies that management may use to motivate employees to embrace the change.
The steps of your chosen ethical decision-making model : Discuss in detail what actions you would take as you proceed through the steps of your chosen ethical decision-making model.
What is the standard deviation on investment : What is the standard deviation on this investment?
What are the themes that interest you the most in case : If you were to counsel this person from a systemic perspective, would you be inclined to work with his or her entire family. Why or why not
Clients and client-based processing : We should begin by defining servers, server-based processing, clients and client-based processing. Now, where do we place middleware in this framework?
Describe agency problem that exists in owners and lenders : Briefly describe the agency problem that exists between owners and lenders.
Examine the controversy related to research : Write a 5-7-page assessment in which you examine the controversy related to research and ethics in the field of social psychology.

Reviews

Write a Review

Financial Management Questions & Answers

  What are the monthly payments after the second year

What are the monthly payments in the first two years? What are the monthly payments after the second year?

  Impact of healthcare on us economy versus other countries

Compare and contrast the impact of healthcare on the US economy versus other countries.

  Numerous situations in order to get possible distribution

The process through which you built numerous situations in order to get the possible distribution of the NPVs is called:

  Find probability that the stock of new castle is undervalued

Determine the required rate of return for New Castle's common stock. Determine the probability that the stock of New Castle is undervalued at its current market price of $25 per share.

  The expected return of your portfolio

Stock J has a beta of 1.17 and an expected return of 14.4 percent, while Stock K has a beta of 0.68 and an expected return of 7.6 percent. You want a portfolio with the same risk as the market. What is the expected return of your portfolio? 10.67 per..

  Process of bidding construction contracts

Dixie Construction is a young firm that is in the process of bidding (and winning) construction contracts. While they are unable to pay any dividends today, once the contracts are awarded and their work begins in earnest, they expect to be able to st..

  Forecasted units in case sales are better than expected

Cake is a product of the Chester Company. Chester's sales forecast for Cake is 1,215 in the Americas region. Chester wants to have an extra 10% on hand above their forecasted units in case sales are better than expected. Taking current inventory into..

  Degree of operating leverage at accounting break-even point

We are evaluating a project that costs $520,000, has a six-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. What is the sensitivity of NPV to changes in the sales figure? What is the..

  Set the property tax rate for each taxing unit

Central County includes five townships. It is served by two independent school districts. Set the property tax rate for each taxing unit.

  Calculate the annual cash flows from fixed-payment annuity

Calculate the annual cash flows (annuity payments) from a fixed-payment annuity if the present value of the 20-year annuity is $2 million and the annuity earns a guaranteed annual return of 10 percent.

  Used to value equity securities

The Capital Asset Pricing Model is used to value equity securities. If the calculated CAPM price deviates from the price a stock is currently trading for, this implies there is an opportunity to profit by either buying the stock or selling it short.

  Using the straight-line method over its economic life

Triad Corporation has established a joint venture with Tobacco Road Construction, Inc., to build a toll road in North Carolina. The initial investment in paving equipment is $81.4 million. The equipment will be fully depreciated using the straight-li..

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