What is the variance for stock

Assignment Help Finance Basics
Reference no: EM133112870

The rates of return for a stock are as follows: 2% if the state of the economy is recession, 8% if the state of the economy is normal, and 11% if the state of the economy is expansion. The probability for each state of the economy is 30%, 45%, and 25%, respectively. Assume the stock has an expected rate of return of 6.95%. What is the variance for this stock?

Reference no: EM133112870

Questions Cloud

Determine the cost per equivalent unit for conversion costs : A total of $856,880 in conversion costs were incurred in the department during the month. Determine the cost per equivalent unit for conversion costs for month
What must be the cash flows to equity investors : A closed-end, commingled opportunity fund is being created with an expected three-year life. It expects to acquire properties that it expects to turnaround and
What is the cost of equity capital for company : A company's stock has a beta of 0.9. The stock currently sells for $150 per share. The company just paid a dividend of $2 per share and future dividends are exp
Determine the cash balance on december : Digman Co. issued additional common shares for $500,000 and borrowed $600,000 from the Bank of Toyland. Determine the cash balance on December
What is the variance for stock : The rates of return for a stock are as follows: 2% if the state of the economy is recession, 8% if the state of the economy is normal, and 11% if the state of t
Organization and function of the human body : Discussed organization and function of the human body. Explain specific function of cell membrane that you feel is the most important in achieving homeostasis.
Company market value of equity : A company has 2,800,000 shares outstanding that sell for $14.75 per share. The company's stock has a beta of 1.4.
Determine the reward-to-risk ratio : Which of the following best defines the reward-to-risk ratio? Multiple Choice
What is the net present value : A project has the following cash flows: -12,263 in year 0, 34,803 in year 1, 34,953 in year 2, and 38,750 in year 3. What is the net present value

Reviews

Write a Review

Finance Basics Questions & Answers

  Describe the form of business ownership

Describe the form of business ownership of your business and explain the advantages and disadvantages of establishing your business in this form.

  Swap rate of contract

Design a swap contract that benefits both companies. Include the swap rate of your contract. (Show your work.)

  Forward price of a bond

Forward Price of a bond

  Elaborate the roles of malaysian banking system

Elaborate the roles of any FOUR (4) players in Malaysian banking system as part of the financial system in Malaysia.

  Calculation of yield to maturity on bonds and finding out

Calculation of yield to maturity on bonds and finding out reason and explain why the International Paper bond is selling at a premimum but Sara Lee is selling at a discount

  Call option on a portfolio of stocks

''A call option on a portfolio of stocks (known as basket or rainbow option) is more valuable than a portfolio of call options on each of the stocks

  What is misa z score on exam

The professor determined that all of the scores of this exam had a normal distribution with a mean of 88 and a standard deviation of 2.

  Calculate the expected returns and standard deviations

Calculate the expected returns and standard deviations of the following portfolios: (i) 80% in A, 20% in B (ii) 50% in A, 50% in B (iii) 20% in A, 80% in B

  When a longitudinal design reveals a change in behavior

When a longitudinal design reveals a change in behavior over time, why can we not conclude that the change is due to development?

  Describe a soundscape or two that you have heard recently

Describe a soundscape or two that you have heard recently. During this event, what instruments were playing, and what kind of music would you describe it to be?

  Calculate the annual end of year loan repayment

To expand its operation, International Tools Inc. has applied to the International Bank for a 3-year, $3,500,000 loan. Make a loan amortization table

  What is the current share price-far side corporation

Far Side Corporation is expected to pay the following dividends over the next four years: $6, $12, $6, and $7. Afterward, the company pledges to maintain a cons

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