### Find the expected rate of return and standard deviation

Assignment Help Finance Basics
##### Reference no: EM1355623

If there is a 20% chance we will get a 16% return, a 30% chance of getting a 14% return, a 40% chance of getting a 12% return, and a 10% chance of getting an 8% return, what is the expected rate of return and the standard deviation?

#### Determine value of the stock call using black-scholes model

Determine the value of the following call using the Black-Scholes model. The stock currently sells for \$95, and the instantaneous standard deviation of the stock's return is

#### Compute the mean return beta and standard deviation

How does your answer to part a change if the debt is risky, has returns with a mean of 7 percent, has a standard deviation of 10 percent, a beta of .2, and has a correlation

#### Relationship between proportion of funds borrowed

How would the return on a stock be affected by a higher initial investment (and lower loan amount)? Explain the relationship between the proportion of funds borrowed and the

#### Firm market value capital structure

What is the firm's market value capital structure? If the company is evaluating a new investment project that has the same risk as the firm's typical project, what rate shou

#### Calculate the total interest cost over 180 days

Using the forecast prime rate changes, answer the following questions. a. Calculate the total interest cost over 180 days for a fixed-rate loan. b. Calculate the total interes

#### What is the return on portfolio

Your stock portfolio consists of only two stocks. You have \$30,000 in Company A and \$35,000 in Company B. Company A has an actual return of -8% and Company B has a return of

#### What is the bonds yeild to maturity

An 8-year bond for Katy Corporation has a market price of \$700 and a par value of \$1000. If the bond has an annual interest rate of 6 percent, but pays interst semiannually,

#### What are the differences between shareholder wealth maximiza

What are the differences between shareholder wealth maximization and profit maximization? If a firm chooses to pursue the objective of shareholder wealth maximization, does th