Assume returns from holding small-company stocks

Assignment Help Financial Management

Reference no: EM132017919

Assume the returns from holding small-company stocks are normally distributed. Also assume the average annual return for holding the small-company stocks for a period of time was 17.1 percent and the standard deviation of those stocks for the period was 35 percent. Use the NORMDIST function in Excel® to answer the following questions.

Requirement 1:

What is the approximate probability that your money will double in value in a single year? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)

Probability %

Requirement 2:

What is the approximate probability that your money will triple in value in a single year? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 8 decimal places (e.g., 32.16161616).)

Probability %

Reference no: EM132017919

Questions Cloud

Calculate the required return using given data : The next dividend payment by Wyatt, Inc., will be $2.85 per share. The dividends are anticipated to maintain a growth rate of 5.00 percent, forever.

What is the portfolio expected return : Portfolio Expected Return An investor puts 36% of their money in Stock 1 with a 9.95% expected return, What is the portfolio's expected return?

The principles of randomized design used in problem analysis : What are the principles advantages and disadvantages of randomized design used in problem analysis? Explain your answer by giving detailed examples.

What happens to the bond coupon rate : A nine year AA rated corporate bond with a $70 annual coupon and a $1000 par value sells at a discount to par. What happens to the bond's coupon rate.

Assume returns from holding small-company stocks : Assume returns from holding small-company stocks are normally distributed. What is approximate probability that your money will double in value in single year?

The issues of individual rights and the publics protection : Create a philosophy and approach for balancing the issues of individual rights and the public's protection.

Computing the expected capital gains yield : The next dividend payment by ECY, Inc., will be $1.52 per share. The dividends are anticipated to maintain a growth rate of 6 percent, forever.

Write a report on serial killers or mass murderers : Two pages of the report can be comprised of images that pertain to any information relating to the serial killer for example his/her picture.

What is the wacc for the company : The corporate tax rate is 25 percent, the market risk premium is 8 percent, and the risk-free rate is 5 percent. What is the WACC for the company?

User Account

All Pages