Which assets appears riskiest based on standard deviations

Assignment Help Finance Basics
Reference no: EM13291906

1. From the information below, compute the average annual return, the variance, standard deviation, and coefficient for each asset.

ASSET ANNUAL RETURNS
A 5%, 10%, 15%, 4%
B -6%, 20%, 2% -5%, 10%
C 12%, 15%, 17%
D 10%, -10%, 20% -15%, 8%, -7%

2. Based upon your answers to question, which assets appears riskiest based on standard deviations? Based on coefficient of variations?

 

Reference no: EM13291906

Questions Cloud

Explain difference and relationship between faith-religion : Explain the difference and relationship between faith, religion, ab) What are the two important elements of theology (for both theology in the narrow and broad sense) How do Catholics and Protestants differ in their view of the Bible. Explain the maj..
Find the magnitudes of the astronauts angular velocity : An astronaut is being tested in a centrifuge. The centrifuge has a radius of 9.6 m and, in starting, rotates according to ? = 0.34t^2, find the magnitudes of the astronaut's angular velocity
Calculate the average collection period : Calculate the average collection period. If the current industry standard collection period is 40 days, determine if an early payment credit is worth implementing. How great of a discount should you provide?
Explain what is value of the activation energy : What is value of the activation energy, Ea, for this reaction. What is the value of the pre-exponential factor (sometimes called the frequency factor), A, for this reaction
Which assets appears riskiest based on standard deviations : From the information below, compute the average annual return, the variance, standard deviation, and coefficient for each asset.
Plot the magnitude and phase of transfer function : plot the magnitude and phase (bode plots) of the following transfer function in the frequency range of 0.1 to1000rd/sec. Fs=(s+10)(s+50)/200s2
Find the total charge on the shell : A nonconducting spherical shell of inner radius R1 and outer radius R2 has a uniform volume charge density ?. find the total charge on the shell
Identify what kind and amount of personal property is exempt : Each state provides a homestead exemption, which permits a debtor to retain the family home, either in its entirety or up to a specified dollar amount, free from the claims of unsecured creditors or trustees in bankruptcy.
Explain the vapor pressure of a solution made biphenyl : C12H10, is a nonvolatile, non-ionizing solute that is soluble in benzene, C6H6. At 25 degrees celcius, the vapor pressure of pure benzene is 100.84 torr. What is the vapor pressure of a solution made from dissolving 13.7 g of biphenyl in 34.6 g of..

Reviews

Write a Review

Finance Basics Questions & Answers

  Estimate the firms current stock price to be

which is also expected return on new investment. Its earnings are expected to grow forever at a rate of 5.5% per year. If its next dividend is due in one year, what do you estimate the firms current stock price to be?

  Calculate the ear for each investment

You have found three investment choices for a one year deposit: Compute the EAR for 10% APR compounded monthly, 10 percent APR compounded annually and 9% compounded daily.

  Probability of completing exam in one hour or less

Determine the probability of completing exam in one hour or less?

  List categories of strategy available to individual investor

List the categories of strategies available to individual investors and professional managers used for bond portfolios.

  Find the percentage increase in firm earnings

A corporation has yearly sales of $14,000. Its variable costs equal 60% of its sales, fixed costs equal $1,000. If the company's sales increase 10 percent,

  What are some considerations for companies in choosing

Offer three reasons with full explanation for why it is important for companies to keep a fair portion of their overall asset balance in liquid assets.

  What is the approximate size of the mortgage

The first payment will be made at the end of the third year (month 36). What is the approximate size (present value, month 0) of the mortgage?

  What are the costs of retained earnings and new common stock

The company currently Pays $2.10 cash dividend and has a 6 percent growth rate. What are the costs of retained earnings and new common stock?

  Compute total liabilities at year end

The following numbers appeared in the yearly report of General Mills, Corporation, the consumer foods manufacturer, for the fiscal year ending May 2008 (in millions of dollars):

  Finding the value of missing cash flow

The present value of the following cash flow stream is $6,785 when discounted at 10 percent annually. Find the value of the missing cash flow?

  How much can you withdraw each year in your retirement

Additionally, when you retire you will transfer your money to an account that earns 6.25 percent.

  What is the new bid

When sofisticated surveys calculated the cost of reaching and surveying particular individuals, the company thought that reaching individuals in young populations would be easiest.

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