What is the probability that annual return on company stocks

Assignment Help Financial Management
Reference no: EM13879458

The annual returns on AAA stocks are normally distributed with an average historical return of 17.3% and a standard deviation of 33.4%. What is the probability that annual return on small-company stocks is between 10% and 30%?

0.2856

0.3802

0.2351

0.3127

0.2086

Reference no: EM13879458

Questions Cloud

Stock valuation debate the current price of the stock : Using the stock valuation debate the current price of the stock and discuss what you think the stock price should be. What are the limitations of the stock valuation techniques in pricing Apple stock? Which valuation technique is best for valuing App..
Maximum allowable electrical power : If the temperature of the insulation may not exceed 50°C, what is the maximum allowable electrical power that may be dissipated per unit length of the conductor? What is the critical radius of the insulation?
Analyze the use of social media in marketing : discuss and analyze the use of social media in marketing your product/service
Prepare notes that itemize the balance sheet control account : Prepare notes that itemize the balance sheet control accounts and those necessary to disclose any company accounting policies, contingent liabilities and subsequent events.
What is the probability that annual return on company stocks : The annual returns on AAA stocks are normally distributed with an average historical return of 17.3% and a standard deviation of 33.4%. What is the probability that annual return on small-company stocks is between 10% and 30%?
Analyze the dynamics of supply and demand : Identify at least four key points of a relevant economic article from either the Strayer Library or a newspaper. The article must deal with any course concepts covered in Weeks 1-8.
Write the lp tableau for this problem : Solve this exercise using Solver. Summarize the optimal solution and SPs. List three factors (other than relative crop prices) that influence the optimal crop mix in this exercise.
Saturated steam at atmospheric pressure : A 2 m x 2 m vertical plate is exposed on one side to saturated steam at atmospheric pressure and on the other side to cooling water that maintains a plate temperature of 50°C.
Expected to pay dividends-what is the current share price : Lohn Corporation is expected to pay the following dividends over the next four years: $17, $13, $12, and $7.50. Afterward, the company pledges to maintain a constant 5 percent growth rate in dividends forever. If the required return on the stock is 1..

Reviews

Write a Review

Financial Management Questions & Answers

  Required rate of return-net present value

Muncy, Inc., is looking to add a new machine at a cost of $4,133,250. The company expects this equipment will lead to cash flows of $817,322, $863,275, $937,250, $1,019,610, $1,212,960, and $1,225,000 over the next six years. An investment of $83 gen..

  Assuming that stock market is efficient-receive full credit

Assuming that the stock market is efficient, is each of the following statements true or false (to receive full credit, you must explain why in two or three sentences or with an example)? The stock price of Company X doubled over the past year, the s..

  What is the interest tax shield

Fleury Co. has a 38 percent tax rate. Its total interest payment for the year just ended was $24 million. Required: What is the interest tax shield?

  Calculate the real exchange rate

Consider the following data on USDMXN and price levels in the United States and Mexico. Calculate the real exchange rate at t=0.

  Relation to the acceptance and completion of capital project

Agency conflicts arise when there are differences in the goals of the firm versus the personal goals of managers. What qualitative considerations are important for the mitigation of agency conflicts in relation to the acceptance and completion of cap..

  Dividends are expected to grow at rate-what is current share

Yang Corp. is growing quickly. Dividends are expected to grow at a rate of 28 percent for the next three years, with the growth rate falling off to a constant 7.9 percent thereafter.

  Find the yield to maturity

A bond has a $1,000 par value, 20 years to maturity, a 6.5% semi-annual coupon, and sells for $1,037.25. Find the yield to maturity. Find the current yield.

  Quantification of decision rules in a healthcare environment

What do you consider to be the key issues for quality improvements in the NHS quality-improvement program as it goes forward? What do you consider to be the strengths and weaknesses of the effort to improve the development of QOF indicators over the ..

  What limitations prevent the forecasts from being foolproof

Give examples of how ratios gleaned from the financial statements can be used as a tool in helping a firm plan for the future. What do these ratios tell an individual analyzing them? What limitations prevent the forecasts from being foolproof?

  About the retirement goal

You believe you will need to have saved 500,000$ by the time you retire in 40 years in order to live comfortably. if the interest rate is 6% per year, how much must you save each year to meet your retirement goal? a couple thinking about retirement d..

  Mortgage plan problem

You are financing a 300K home with 20% down payment. The 30-year interest rate (APR) is 4.5%, and the 15-year interest rate (APR) is 3.5%. What is the difference in the monthly payment if choose 30- year and 15-year mortgage plan?

  Finance assess the logic of his investment strategy

A University Professor observed that the news program “60 Minutes” had done over 30 adverse news stories on NYSE listed companies in the past five years. How would you as an expert in finance assess the logic of his investment strategy?

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