User Account

All Pages

Calculate the return in percent for each value

Assignment Help Finance Basics
Reference no: EM131143507

Suppose that a security costs $3000 today and pays off some amount b in one year. suppose that b is uncertain according to the following table of probabilities.

B________$3000_____$3300__________$3600________$3900________$4200

Probability 0.1_______0.2_____________0.3__________0.2__________0.2

A. Calculate the return (in Percent) for each value of b. (note: you may just calculate the total return and not worry about how this split between current yield and capital- gains yield)

B. Calculate the expected return (in Percent)

C. Calculate the standard deviation of the return

D. Suppose that an investor has choice between buying this security or purchasing a different security that also cost $3000 today but pays off $3300 with certainty in one year. How is an investor's choice of which security to purchase related to his degree of risk aversion

Reference no: EM131143507

Questions Cloud

Describing using three different social media platforms : Write a 350- to 700-word summary describing using three different social media platforms with the objective of networking within your career field. Use your current social media accounts, or create new ones. Incorporate research regarding how to p..
How are devices are vulnerable to hacking : Based on the TED talks video on " How are devices are vulnerable to hacking", the presenter goes into an overview on how various technology like Pace Makers, vehicles, and radios are susceptible to attack.
Is there connection between ethical behavior : Is there a connection between ethical behavior within an organization and its chances of long-term survivability? Do you think that a company that behaves ethically is less or more likely to make more profit?
Determine the end area graphically by counting squares : From the following excerpt of field notes, plot the cross section on graph paper and superimpose on it a design template for a 30-ft-wide level roadbed with fill slopes of 2-1/2:1 and a subgrade elevation at centerline of 970.30 ft. Determine the ..
Calculate the return in percent for each value : Calculate the return (in Percent) for each value of b. (note: you may just calculate the total return and not worry about how this split between current yield and capital- gains yield). Calculate the expected return (in Percent)
Discuss his beliefs and their influence upon modern society : Nietzsche's ideas attacked Western society's beliefs about morality, religion, and the existence of absolute truth. Discuss his beliefs and their influence upon modern society. Prof Kim (ONLY)
What is peter pretax cost of debt : Peter, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with seven years to maturity that is quoted at 108 percent of face value. The issue makes semiannual payments and has an embedded cost of 7.4 percent annually..
Make a presentation powerpoint for public economics : Make a presentation PowerPoint for public economics. - Use a very good design i.e. elemental slide in preparing presentation.
How much was the free cash flow of apple computers : Based on the financial statements given in the upcoming worksheets, how much was the Free Cash Flow of Apple Computers for the year ending September 2014?

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial statement analysis

Consider the following sets of financial statements and answer the questions that follow:

  In order to develop effective strategies it is critical to

in order to develop effective strategies it is critical to understand the marketplace environment. in this assignment

  Discuss the role of banking in business

These problems are belongs to Finance and the problems are discusses the role of banking in business and the challenges faced by corporate governance and the role played by investment banking.

  Morgantown movers has net working capital of 11300 current

morgantown movers has net working capital of 11300 current assets of 31200 equity of 53400 and long-term debt of 11600.

  What is the effective annual rate on a six-month loan

Bank A offers loans with a 10 percent stated annual rate and a 10 percent compensating balance. You wish to obtain $250,000 in a six month loan.

  Assuming that the company maintains the same payout ratio

tapley inc. currently has total capital equal to 7 million has zero debt is in the 40 federal-plus-state tax bracket

  What is the approximate real rate of interest

Treasury bills are currently paying 8 percent and the inflation rate is 3.50 percent.

  What problems would you encounter in computing

The positive cash flow occurring in year 10 is the result of the asset's salvage value. a. What problems would you encounter in computing the equity investor's rate of return on this investment? b. If, as a potential equity investor, you require an 8..

  Company valuation methods

Make a valuation analysis for intrinsic value of GE stock. The analysis must incorporate CAPM and single-stage DDM. Refer to "Key Statistics" in the Yahoo site for additional model variable values such as beta.

  Describing capital structure

Question are the total market value of the firms stock and the firms total market value ? What is the firms weighted average cost of capital?

  Pbj corporation issued bonds on january 12006 the bonds had

pbj corporation issued bonds on january 12006. the bonds had a coupon rate of 5.5 with interest paid semiannually. the

  What is the minimum number of billable hours each year

Your company has purchased a new track hoe for $100,000. The track hoe can be billed out at $95.00 per hour, has an hourly operation cost of $33.00, and has a useful life of four years. At the end of four years the track hoe has a salvage value of $2..

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd