Calculating expected return and standard deviation

Assignment Help Finance Basics
Reference no: EM1338688

Consider the following probability distribution of returns for Alpha Corporation:

Current Stock Price ($25):
One Year ($) $35, $25, $20;
Return R: 40%, 0%, -20%;
Probability PR: 25%, 50%, 25%.

(A). Compute the expected return for Alpha Corporation.
(B). Compute the standard deviation of the return on Alpha Corporation.

Reference no: EM1338688

Questions Cloud

Explain development issues in ldcs : Explain Development Issues in LDCs and Take a specific issue or topic in sociology of development
Explain these concepts address google opportunities : Explain these concepts address Google's opportunities and problems. What are some political and economic policies affecting Google and how do they influence decision-making.
Stocks and bonds-gulf coast fisheries : The common stock of Gulf Coast Fisheries currently sells for $72 per share. What return did investors who owned the company's stock earn during the past year?
Explain breakeven analysis for a cookie store : Explain Breakeven Analysis for a cookie store and How many cookies would we have to sell each day to break even if we sold our cookies at $1 apiece and had the following expenses
Calculating expected return and standard deviation : Consider the following probability distribution of returns for Alpha Corporation: Evaluate the expected return for Alpha Corporation. Calculate the standard deviation of return on Alpha Corporation.
Discuss market trends that general motors organization : Discuss market trends that General Motors organization/industry will face and address(discuss) how their prices and technology will change or will not change, and why.
Explain brainstorming topics for technology paper : Explain Brainstorming topics for technology paper like social networks and marketing tactics
Elucidate the organization educe current operations : Elucidate the organization/industry continue, expand, or reduce current operations in order to maximize profits. Explain your reasoning.
Explain cfo to ceo : Explain CFO to CEO and There has been a trend across corporate America of promoting financial officers to CEO

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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