What is approximate probability that this stock will return

Assignment Help Financial Management
Reference no: EM131025918

A stock had returns of 4 percent, 11 percent, 16 percent, -6 percent, and -2 percent for the past five years. Based on these returns, what is the approximate probability that this stock will return at least 20 percent in any one given year?

Reference no: EM131025918

Questions Cloud

Accommodations for individuals with disabilities : The Americans with disabilities act requires that employer make reasonable accommodations for individuals with disabilities ..How might this requirement affect law enforcement afficers and firefighters?
Determine the primary and secondary target markets : Write an introduction to your company. Describe your company, its location, and the product it makes or the service it provides - develop an environmental analysis that includes competitive, economic, political, legal, technological, and sociocult..
With an expected return and standard deviation : Consider two stocks, Stock D, with an expected return of 12 percent and a standard deviation of 30 percent, and Stock I, an international company, with an expected return of 10 percent and a standard deviation of 15 percent. The correlation between t..
What is the standard deviation of the stocks returns : You find a certain stock that had returns of 4 percent, -5 percent, -15 percent, and 16 percent for four of the last five years. The average return of the stock for the past year-year period was 8 percent. What is the standard deviation of the stock'..
What is approximate probability that this stock will return : A stock had returns of 4 percent, 11 percent, 16 percent, -6 percent, and -2 percent for the past five years. Based on these returns, what is the approximate probability that this stock will return at least 20 percent in any one given year?
Critical analysis of organizational strategy and innovation : Your Business Strategy Report will provide an in-depth set of analyses, based on work you have done in Units 1 through 5, of the organization's current strategic position.
Spot exchange rates-what happened to the real value of peso : The Mexican peso/US$ spot exchange rates in December 1997 and December 1998 were 6.3 and 7.0, respectively. During 1998 inflation rates in Mexico and US were at 23% and 5%, respectively, and the one year interest rates in December 1998 in pesos and d..
Draw the circuit symbol for an n pn bjt : Draw the circuit symbol for an n pn BJT. Label the terminals and the currents. Choose reference directions that agree with the true current directions for operation in the active region.
Describe how and when the atlantic ocean formed : Based on ages of the oldest rocks in the North and South Atlntic, describe how and when the Atlantic Ocean formed, and how its shape has changed through time?

Reviews

Write a Review

Financial Management Questions & Answers

  A trader has a put option contract to sell

A trader has a put option contract to sell 100 shares of stock for a strike price of $60. What's the effect on the terms of the contract if (a) a $2 cash dividend (b) a 5-for-2 stock split (c) a 5% stock dividend is being paid?

  Present value of this stream of cash flows

The state lottery's million dollar payout provides for $2 million to be paid over 24 years in 25 payments of $80,000. The first $80,000 payment is made immediately, and the 24 remaining $80,000 payments occur at the end of each of the next 24 years. ..

  Simple interest on its savings account balances

First City Bank pays 7 percent simple interest on its savings account balances, whereas Second City Bank pays 7 percent interest compounded annually. If you made a $6,000 deposit in each bank, how much more money would you earn from your Second City ..

  Considering an investment-assuming market is in equilibrium

You are considering an investment in Keller Corp's stock, which is expected to pay a dividend of $1.75 a share at the end of the year (D1 = $1.75) has a beta of 0.9. The risk-free rate is 3.1%, and the market risk premium is 5.5%. Keller currently se..

  Expect interest rates to decrease

Jackson Central has a 6-year, 8% annual coupon bond with a $1,000 par value. Earls Enterprises has a 12-yr, 8% annual coupon bond with a $1,000 par value. Both bonds currently have a yield to maturity of 6%. Which of these two bonds should you buy if..

  Interested in buying a new high-speed production machine

As a manager of an Italian clothing manufacturer, you are interested in buying a new high-speed production machine. There are two different companies – both based in the US – that sell this (identical) machine. Company A sells it for $10,900, payable..

  Maturity risk premium is required on TIPs

Suppose the rate of return on a 10-year T-bond is currently 5.00% and that on a 10-year Treasury Inflation Protected Security (TIP) is 2.10%. Suppose further that the maturity risk premium on a 10-year T-bond is 0.9%, that no maturity risk premium is..

  The interest is paid semiannually and the bonds mature

Stephanie Enterprises has bonds that have a 9 percent coupon rate. The interest is paid semiannually and the bonds mature in 8 years. Their par value is $1,000. The price of the bonds are $1,070, and are callable in 5 years with a call price of $1,05..

  Income-producing real estate be handled for tax purposes

How should interest prepayments (including points) for income-producing real estate be handled for tax purposes?

  What are the companys days sales in receivables

A company has net income of $265,000, a profit margin of 9.3 percent, and an accounts receivable balance of $145,300. Assuming 80 percent of sales are on credit, what are the company’s days’ sales in receivables?

  Describe with a graph the payoff from the portfolio

Describe with a graph the payoff from the following portfolio: a long forward on some a set and a long put option on the same asset with the same maturity as the forward contract, and a strike price that is equal to the forward price at the time the ..

  Quantitative problem-what is the value of the bond

Quantitative Problem: Potter Industries has a bond issue outstanding with a 6% coupon rate with semi-annual payments of $30, and a 10-year maturity. The par value of the bond is $1,000. If the going annual interest rate is 7.2%, what is the value of ..

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