About the security produced returns

Assignment Help Financial Management
Reference no: EM13928148

A security produced returns of 13 percent, 18 percent, 9 percent, 23 percent, and -17 percent over the past five years, respectively. Based on these five years, what is the probability that this stock will earn more than 24.76 percent in any one given year?

16.0 percent, 0.5 percent, 5.0 percent, 1.0 percent, 2.5 percent

Reference no: EM13928148

Questions Cloud

Compute the annual net cash flows for the project : Compute the project's net investment. Compute the annual net cash flows for the project. If the firm's cost of capital is 19 percent, should the project be undertaken?
Best value outlet recently announced-intends to pay dividens : Best Value Outlet recently announced that it intends to pay dividends of $0.40, $0.60, $0.75, and $1.00 per share over the next four years, respectively. After that, the plan is to increase the dividend by 3.5 percent annually. What is the current va..
Explain deterioration in working conditions : To what extent can individual business decisions (as opposed to economic forces) explain deterioration in working conditions for many workers?
Why are the variables used in the model : What variables are used? Why are the variables used in the model?, Consider relation among measurable variables, what is the impact of an independent variable X on a dependent variable Y, what are some additional independent variable that could in..
About the security produced returns : A security produced returns of 13 percent, 18 percent, 9 percent, 23 percent, and -17 percent over the past five years, respectively. Based on these five years, what is the probability that this stock will earn more than 24.76 percent in any one give..
Calculate the amount of lime and soda require for softening : Water contains following impurities in ppm: Ca(HCO3)2 = 75 ppm, Mg(HCO3)2 = 73ppm, CaCl2 = 95 ppm, MgSO4 = 30 ppm, CO2 = 20. Calculate the amount of lime (85%pure) and Soda (95% pure) require for softening of 2,50,000 litres of water using sodiumalum..
Knowledgeable regarding computers : Ahmed, who is very knowledgeable regarding computers, agrees to purchase computers for Khaled's business. Ahmed is retained at Khaled’s business for that purpose only, he is paid a set rate for the job, and Khaled exercised no control over the manner..
What is probability that project will have a negative npv : The most pessimistic estimate represents a value that the project's NPV is not expected to fall below more than 10 percent of the time. What is the probability that this project will have a negative NPV?
What will value of the firm be company takes on debt value : Letang Corporation expects an EBIT of $22,500 every year forever. The company currently has no debt, and its cost of equity is 13.5 percent. The company can borrow at 9 percent and the corporate tax rate is 38. What is the current value of the compan..

Reviews

Write a Review

Financial Management Questions & Answers

  Calculate the npv-irr and payback period

Calculate the projected cash flows - maximize NPV which project should it undertake - Calculate the projected cash flows.

  Components of a traditional balance sheet

The following items are components of a traditional balance sheet. How much are the total assets of the firm?

  Should the couple invest in land and blueberry business

Fred and Frieda have always wanted to enter the blueberry business. They locate a 50- acre piece of hillside in Maine that is covered with blueberry bushes. Assume that the land can be sold for only $50,000 at the end of 20 years (a capital loss of $..

  Break-even point for the entire company is closest

Mounts Corporation produces and sells two products. In the most recent month, Product I05L had sales of $39,000 and variable expenses of $11,580. Product P42T had sales of $52,000 and variable expenses of $16,630. The fixed expenses of the entire com..

  What is the present value of the first arrangement

You've just joined the investment banking firm of Dewey, Cheatum, and Howe. They've offered you two different salary arrangements. You can have $193,000 per year for the next two years, or you can have $75,000 per year for the next two years, along w..

  Company is obligated to sell more of the commodity

You observe that a company has entered into futures contracts where the company is obligated to sell more of the commodity it produces than the volume they actually expect to produce. How might this be justified? What if instead you observed that a c..

  Standard deviation of the rate of return on new portfolio

You are the portfolio manager for a mutual fund. Your fund has an expected return of 15% with a standard deviation of 24% and the T-bill rate is 3%. Calculate the weight w. What is the standard deviation of the rate of return on the new portfolio?

  Vulnerable to sovereign interference in mozal project

Is a smelter vulnerable to sovereign interference in mozal project? Is this smelter vulnerable? How have the sponsors tried to mitigate sovereign risk?

  About the credit terms

Credit terms. Purchases made on credit are due in full by the end of the billing period. Many firms extend a discount for payment made in the first part of the billing period.

  Payment dates-determine when a firm must pay

Payment dates. Determine when a firm must pay for purchases made and invoices dated on November 25 under each of the following credit terms

  What the implicit cost of trade credit under these terms

Book Depot Inc. sells on terms of 1/15, net 70. What is the implicit cost of trade credit under these terms? Use a 365-day year. Round the answer to two decimal places in percentage form.

  Firm is under-valued or over-valued

A manager believes his firm will earn a 12 percent return next year. His firm has a beta of 1.2, the expected return on the market is 8 percent, and the risk-free rate is 3 percent. Compute the return the firm should earn given its level of risk and ..

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