What is the variance of returns for this investment

Assignment Help Financial Management

Reference no: EM132020307

1. An investment earned the following returns for the years 2013 through 2016:15%, 5%, 30%, and 10%. What is the variance of returns for this investment?

a. 0.1541

b. 0.0892

c. 0.1747

d. 0.0323

e. 0.0117

2. Given the following information, what is the standard deviation of stock A if it has an expected return of 33% in a boom economy, an expected return of 18% in a good economy, and an expected return of 2% in a recession? The probabilities of boom, normal, recession are 0.2, 0.6, and 0.2, respectively.

a. 0.0527

b. 0.0891

c. 0.0981

d. 0.0703

e. 0.0128

Reference no: EM132020307

Questions Cloud

What is your portfolio standard deviation : The correlation coefficient between A and B is 0.6. What is your portfolio standard deviation?

What is the variance of returns for investment : What is the variance of returns for this investment?

Dividend the firm is expected to pay over one year period : The stock's dividend yield is 5.5%. What is the dividend the firm is expected to pay over a one year period if the current stock price is $80?

What is the unlevered value of the firm : A firm has a tax rate of 35%, an unlevered rate of return of 12%, total debt of $2,000, and an EBIT of $150.00. What is the unlevered value of the firm?

What is the variance of returns for this investment : An investment earned the following returns for the years 2013 through 2016:15%, 5%, 30%, and 10%. What is the variance of returns for this investment?

Income tax effects of lower of cost or market : Evaluating the Income Statement and Income Tax Effects of Lower of Cost or Market. Restate the income statement to reflect LCM valuation of the ending inventory

What is the aftertax cost of debt and wacc : What is the aftertax cost of debt? What is the company’s WACC?

Annual deposits to retirement fund : While they have consistently made annual deposits to a retirement fund, current financial demands may force them to access some of that money.

Use for debt when calculating cost of capital : If the company has a $46.3 million market value of equity, what weight should it use for debt when calculating the cost of capital?

User Account

All Pages