### Standard deviation of that starting salary

Assignment Help Financial Management
##### Reference no: EM13728508

You have chosen biology as your college major because you would like to be a medical doctor. However, you find that the probability of being accepted into medical school is about 10 percent. If you are accepted into medical school, then you’re starting salaries when you graduate will be \$300,000 per year. However, if you are not accepted, then you would choose to work in a zoo, where you will earn \$40,000 per year. Without considering the additional educational years or the time value of money, what is your expected starting salary as well as the standard deviation of that starting salary?

Expected Salary \$42,000; Standard Deviation \$81,000

" " \$54,000 " " \$78,000

" " \$66,000 " " \$78,000

None of the above

### Previous Q& A

#### Enable michele to achieve her investment requirement

In order to fund her retirement, Michele requires a portfolio with an expected return of 0.11 per year over the next 30 years. She has decided to invest in Stocks 1, 2, and 3, with 25 percent in Stock 1, 50 percent in Stock 2, and 25 percent in Stock..

#### The risk-free rate of return is currently

The risk-free rate of return is currently 0.05, whereas the market risk premium is 0.07. If the beta of RKP, Inc., stock is 1.7, then what is the expected return on RKP?

#### What is the dollar amount of income

A woman purchased a piece of real estate last year for \$82,500. The real estate is now worth \$102,900. If she needs to have a total return of 0.20 during the year, then what is the dollar amount of income that she needed to have to reach her objectiv..

#### Critically analyze the value of the marketing

Part of understanding the patterns of consumer and organizational buying is the need to understand "Why" people do the things they do. Critically analyze the value of the marketing approach suggested by Simon Sinek

#### What extent does business dominate industry policy

what extent does business dominate industry policy in Australia? Discuss, using examples and drawing upon the concepts taught in this unit.

#### Risk-free rate of return and expected return on the market

The beta of M Simon Inc., stock is 1.3, whereas the risk-free rate of return is 0.08. If the expected return on the market is 0.14, then what is the expected return on M Simon Inc?

#### The prairie dog has always been considered a problem

The prairie dog has always been considered a problem for American cattle ranchers. They dig holes that cattle andhorses can step in, and they eat grass necessary for cattle. Recently, ranchers have discovered that there is a demandfor prairie dogs as..

#### What is his or her occupation

Describe who this person is demographically and their core values. What is his or her occupation? What unmet needs is the company fulfilling? Do you think it worked

#### Firm evaluates all of projects by using npv decision rule

A firm evaluates all of its projects by using the NPV decision rule. At a required return of 12 percent, the NPV for the following project is \$ ________ and the firm should accept the project. At a required return of 31 percent, the NPV is \$ ________..

#### Organizational effectiveness in organizational structures

A moderator is a qualitative (e.g., sex, race, class) or quantitative (e.g., level of reward) variable that effects the direction and/or strength of the relation between an independent...variable and a dependent...variable" to acquire Organization..

### Similar Q& A

#### Riskier stock exceed required return on the less risky stock

Stock R has a beta of 1.3, Stock S has a beta of 0.8, the expected rate of return on an average stock is 13%, and the risk-free rate of return is 7%. By how much does the required return on the riskier stock exceed the required return on the less ris..

#### Analysis of the monthly demand for service has revealed

The eastern shuttle, INC is a regional airline providing shuttle service between New York and Washington DC. An analysis of the monthly demand for service has revealed the following demand relation:

#### What is EAR implied in each option

Suppose you plan to borrow \$10000 from the bank and have two options to pay back: What is EAR implied in each option? Which one do you prefer and explain why?

#### Inheritance or debt and what is the amount

Daisy Flowers has just retired with \$650,000 in her retirement account. She would like \$5,000 each month to pay her bills (and have some fun). She expects to receive a \$1,500 check each month from Social Security, and will obtain the rest from her re..

#### Budgets in managerial accounting

Using the information, prepare a budget for May. Consider that production wil increase to 30,000 jars of salsa, reflecting an anticipated sales increase related to a new marketing campaign.

#### Create a portfolio with an expected return

You have \$258,000 to invest in a stock portfolio. Your choices are Stock H, with an expected return of 14.3 percent, and Stock L, with an expected return of 10.9 percent.

#### Question 1compute the price of an american call option with

question 1compute the price of an american call option with strikek110and maturityt.25years.question 2compute the price

#### Gringottsltd manufactures a product known as the nimbus 500

gringottsltd manufactures a product known as the nimbus 500. a large number of other companies also manufacture the

#### What is the share dividend

The Sharpe Co. just paid a dividend of \$2.05 per share of stock. Its target payout ratio is 40 percent. The company expects to have earnings per share of \$6.20 one year from now. If the adjustment rate is .3 as defend in the Lintner model, what is th..

#### What is the expected return on a portfolio

What is the expected return on a portfolio that is equally invested in the two assets? If a portfolio of the two assets has a beta of .5, what are the portfolio weights? If a portfolio of the two assets has an expected return of 8 percent, what is it..

#### Invested funds problem

Your uncle has \$1,025,000 and wants to retire. He expects to live for another 25 years, and he also expects to earn 7.5% on his invested funds. How much could he withdraw at the beginning of each of the next 25 years and end up with zero in the accou..

#### The process of evaluating the project should be separated

the process of evaluating the project should be separated from the ranking process of the project in the portfolio the