Calculating expected return and standard deviation

Assignment Help Corporate Finance
Reference no: EM1346523

You are considering the three securities listed below.

Probability Stock A Stock B Stock C
20% 2% -3% 5%
50% 10% 8% 8%
30% 15% 20% 12%

a. Calculate the expected return for each security.

b. Calculate the standard deviation of returns for each security.

c. Compare Stock A with Stocks B and C. Is Stock A preferred over the others?

Reference no: EM1346523

Previous Q& A

  Manage the virtual office

Manage the Virtual Office - how might the communications needs of a virtual worker differ from those of a more traditional office worker?

  What is the wires linear charge density

A 200 lbs guy wants to slide down a plastic slide 24 ft long and on a 30 degree angle, after that the slide goes horizontally for 6 feet. Taking friction into consideration, how fast would he be going down the slide.

  Example on communication technology

Can John's personal philosophy about communication affect his career? If yes, why? If no, why not? If you were John, what personal philosophy about communication would you have in order to maximize not only your job success, but also the success o..

  Market penetration strategy- manufacturer of sporting goods

Berkshire Hathaway Inc., a big property insurance company owns a large chain of jewellery stores as well as has recently purchased Russell Corporation a manufacturer of sporting goods

  Determine proportion of the optimal risky portfolio

An shareholder can design a risky portfolio based on two (2) stocks, stock A and stock B. Stock A has an expected return of 21 percent and a standard deviation of return of 39 percent.

  Explain about brand communication

college or Pro sport organization attempt to affect consumers through brand communication and how does this affect your feelings of change over the next 25 years?

  What is the acceleration of the elevator

A 20 {rm kg} child plays on a swing having support ropes that are 2.3 {rm m} long. A friend pulls her back until the ropes are 39.0^circ from the vertical and releases her from rest.

  Prepare an action plan listing communication strategies

Conflict scenario is procrastinating on a job project deadline - Prepare an action plan listing the specific communication strategies that must be used to resolve the conflict

  What error is introduced by weighing styrofoam block

A 2.5 mol sample of helium gas initially at 300 K and 0.400 atm is compressed isothermally to 1.30 atm. Note down that the helium behaves as an ideal gas.

  Most efficient when denying a customer''s request

Which of the subsequent explanations most effective when denying a customer's request for credit? Your failure to meet our standards will not allow us to issue you a credit account.


Write a Review


Similar Q& A

  What is the accounts receivable balance

The Inventory Conversion period is 40 days, the Accounts Payable Balance is $2,000, and the Operating Cycle is 60 days and What is the Accounts Receivable balance?

  Find the companies total value with leverage

A firm is on the verge of a new product launch.  Depending on how well product does in marketplace, three possible outcomes for next years valuation are:  $210 m, $150 m or $60 m.

  Universal life policy

The given table provides data about a universal life policy. Fill in the Table Year 1 Year 2 Year 3 Cash value at starting of year $10,000

  Find the market value of the firm

Find the market value of the firm and value of your share of the firm's equity

  Show the financial management and accounting issues

Why can't we just get straight to the financial management and accounting issues?

  Make journal entry to record reacquisition of the stock

On June 15, Bunting Company reacquired 12,000 shares of its dollar 10 par value common stock for $18 per share. Bunting uses cost method to account for treasury stock.

  Agreement for a fixed price

A farmer has an contract for a fixed price of a product that is being sold in interstate commerce for a competitive value. Is this legal?

  Find the maximum sales loss

The Healthy Spring Water corporation sells bottled water for offices or homes. The price of the water is $20 per ten gallon bottle & firm currently sells 2,000 bottles per day.

  Determine the interest expense

Determine the interest expense that Coley Co. will show with respect to these bonds in its income statement for the fiscal year ended September 30, 2009, assuming that the discount of $360,000 is amortized on a straight-line basis.

  Find rogers'' breadeven level of sales

CVP analysis involves calculation of breakeven point in units - Find Rogers' breadeven level of sales at the level of fixed operating cost?

  Why do firms compute weighted-average costs of capital

Why do firms compute weighted-average costs of capital?    You need to estimate the value of a company with the following data:

  Purpose a monthly income and expense plan for terrels

Preparation of monthly income and expense plan and analysis of financial position - Purpose a monthly income and expense plan for the Terrels in 2003.

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