Probability range of returns for any one given year

Assignment Help Financial Management
Reference no: EM13879600

A stock has returns of 18 percent, 15 percent, -21 percent, and 6 percent for the past four years. Based on this information, what is the 95 percent probability range of returns for any one given year?

a. -31.00 to 40.00 percent

b. -47.68 to 54.68 percent

c. -71.73 to 71.73 percent

d. -24.60 to 31.80 percent

e. -13.56 to 20.56 percent

Reference no: EM13879600

Questions Cloud

Ironclad formula for projecting future dividend growth : Bob and I are looking at AT&T's stock because we are both very wealthy stock market investors. We usually spend summers together in the Swiss Alps (at his expense…you see, he likes me and we are pals). We agree on the expected dividend AT&T will be p..
Your friend is the owner of a stock which had returns : Your friend is the owner of a stock which had returns of 25 percent, -36 percent, 1 percent, and 16 percent for the past four years. Your friend thinks the stock may be able to achieve a return of 50 percent or more in a single year. Based on these r..
How are exchange rates determined? : How are exchange rates determined? What is the significance of currency devaluations to the home country? To other countries?
State this problem in standard form : Restate the objective function of this problem in such a way that it is technically a maximization problem, with a solution identical to a minimization problem given the constraints stated in part a.
Probability range of returns for any one given year : A stock has returns of 18 percent, 15 percent, -21 percent, and 6 percent for the past four years. Based on this information, what is the 95 percent probability range of returns for any one given year?
The internal rate of return : The internal rate of return:
Paper- traumatic stress disorder in law enforcement : Need a 12 PAGE RESEARCH PAPER not including the title and refernce page. The topic is going to Post Traumatic Stress Disorder in Law Enforcement and the military
What are the terminal cash flows from the sale of the asset : The Cosmo K Manufacturing Group currently has sales of $1,400,000 per year. It is considering the addition of a new office machine, which will not result in any new sales but will save the company $105,500 before taxes per year over its 5-year useful..
Analyze the effect of sarbanes-oxley on pricing practices : Analyze the effect of Sarbanes-Oxley on pricing practices

Reviews

Write a Review

 

Financial Management Questions & Answers

  Should leave capital markets unregulated

Calculate how much money she could take out each year for the 20 years from her 41st birthday till her 60th birthday, assuming she still earns 5% and takes out the same amount each year, leaving exactly $0 in the account after removing her 20th paym..

  Large retailer obtains merchandise under the credit terms

A large retailer obtains merchandise under the credit terms of 1/15, net 45, but routinely takes 60 days to pay its bills. (Because the retailer is an important customer, suppliers allow the firm to stretch its credit terms.) What is the retailer's e..

  Risk management attributes of a eur

What pairing of options would come closest to achieving the same risk management attributes of a EUR/USD six month forward contract

  Indicative of a flexible short-term financial policy

Which one of the following is most indicative of a flexible short-term financial policy?

  What is maximum price you should be willing to pay for bond

Assume that you are considering the purchase of a 11-year, no callable bond with an annual coupon rate of 8.60%. The bond has a face value of $1000, and it makes semi-annual interest payments. If you require an 11.70% yield to maturity on this invest..

  How much you would save if you went with a loan for half

You are going to borrow $440,000 for a term (number of years) corresponding to your age at a 5.50% interest rate. Calculate the following: The monthly payment. The total out-of-pocket cash you will spend to completely pay off the loan

  Company will increase its dividend

Holyrood Co. just paid a dividend of $2.10 per share. The company will increase its dividend by 20 percent next year and will then reduce its dividend growth rate by 5 percentage points per year until it reaches the industry average of 5 percent divi..

  Future value and multiple cash flows

Future Value and Multiple Cash Flows- Cannonier, Inc. has identified an investment project with the following cash flows. If the discount rate is 8 percent, what is the future value of these cash flows in Year 4 ? What is the future value at a discou..

  Rapid growth-what is projected dividend for the coming year

Momsen Corp. is experiencing rapid growth. Dividends are expected to grow at 26 percent per year during the next three years, 16 percent over the following year, and then 5 percent per year indefinitely. The required return on this stock is 12 percen..

  What is the amount of the collection float as of the end

As of this morning, your firm had a ledger balance of $775 with no outstanding deposits or checks. Today, your firm deposited six checks in the amount of $79 each and wrote a check in the amount of $330. What is the amount of the collection float as ..

  Sales increase-having to raise funds externally

Pierce Furnishings generated $2 million in sales during 2012, and its year-end total assets were $1.4 million. Also, at year-end 2012, current liabilities were $500,000, consisting of $200,000 of notes payable, $200,000 of accounts payable, and $100,..

  What will be the percentage change in the bond price

A bond has a Macaulay duration of 6.25 years. What will be the percentage change in the bond price if the yield to maturity increases from 6 percent to 6.4 percent?

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