Calculate the standard deviation for the two stocks

Assignment Help Financial Management
Reference no: EM13730479

State of economy probability of state of economy rate of return stock A Rate of return stock B

recession .19 .10 -.14

normal .60 .13 .15

boom .21 .18 .32

A. calculate expected return for the two stocks

B. calculate the standard deviation for the two stocks

Reference no: EM13730479

What are the costs and limitations of strategy

John Smith bought 300 shares at $40 per share about 10 months ago. The price has risen to $75 a share.  At this time, the market is starting to weaken, but John feels there is

Determine the highest cost for the aluminum tank

An engineer wants to consider an aluminum tank as well as the steel and fiberglass tank. The steel tank costs $225,000 and is expected to last 15 years. The aluminum tank is e

Retirement account-how much will she have ten years later

An individual has $110,000 in a retirement account. Each month she deposits $1,000 while earning 5% a year on her money. How much money will be in the account in 10 years? How

The bonds are selling at par value-what is cost of equity

Country Markets has an unlevered cost of capital of 12 percent, a tax rate of 38 percent, and expected earnings before interest and taxes of $15,700. The company has $11,000 i

Prefer option hedge over a futures or forward hedge

What are ARMs? When will a borrower prefer an ARM over a fixed-rate mortgage? When will he prefer a fixed-rated mortgage over an ARM? When would you prefer option hedge over a

What is the company cost of equity capital

The Graber Corporation’s common stock has a beta of 1.3. If the risk-free rate is 5.3 percent and the expected return on the market is 11 percent, what is the company’s cost o

What is the rate of return-define the goal or objective

An investor has invested $250,000 in a new rental property. Her estimated annual costas are $6,000 and annual revenues are $20,000. What rate of return per year will the inves

Considering the sale of a new sound board

Rolston Music Company is considering the sale of a new sound board used in recording studios. The new board would sell for $26,500, and the company expects to sell 1,500 per y

Reviews

Write a Review

 
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