Average returns and standard deviations for their stocks

Assignment Help Finance Basics
Reference no: EM13153388

The countries of Stabilato and Variato hae the following average returns and standard deviations for their stocks, bond, and short-term government securities. What range of returns should you expect to earn 95 percent of the time for each asset class if you invested in Stabilato's securities? From investing in Variato's securities?

Satabilato Asset Average RTN Standard DEV
Stocks 8% 3%
Bonds 5% 2%
Short-term gov debt 3% 1%

Variato Asset AVG RTN Standard DE
Stocks 15% 13%
Bonds 10% 8%
Short-term gov Debt 6% 3%  

Reference no: EM13153388

Questions Cloud

Why soft selling can serve as a successful signal : why soft selling can serve as a successful signal of the quality or usefulness of the new accounting system.
What is the ph of the solution : What is the PH after .15 mol of NaOH is added to .050 mol of propanic acid and ,080 M of sodium propanoate with a ka of 1.3x10^.5
Why fix it before it breacks : During an argument as to the merits of preventive maintenance at a printing company, the company owner asked, "Why fix it before it breacks? How would you, as the director of maintenance, respond?
Compute the change in internal energy : f the water if brought to the vapour state at 204C and 710 KPa, where its enthalpy is 2649.4 KJ/Kg and its specific volume is 291.8 cm^3/g, what is the internal energy (U) at these conditions in KJ/Kg? c) Calculate the change in internal energy (d..
Average returns and standard deviations for their stocks : The countries of Stabilato and Variato hae the following average returns and standard deviations for their stocks, bond, and short-term government securities. What range of returns should you expect to earn 95 percent of the time for each asset class..
Straight-line method both to determine interest expense : One year from the issue date (July 1, 2012), the corporation exercised its call privilege and retired the bonds for $395,000. The corporation uses the straight-line method both to determine interest expense and to amortize debt issue costs.
Calculate the marginal revenue product : Calculate the marginal revenue product given this information and how many real estate agents will the manger hire if the wage rate is $32,000? Why?
What must the structural balance : In the year 2000, the US had a Budget Balance of $236 billion dollars. The cyclical component of the budget totaled $94 billion. What must the structural balance be (in billions of dollars)?
What is the etiology, treatment and prognosis : What is the Etiology, treatment and prognosis for a19 year old soccer player complaining of chills and pain while working and experiences progressively spreading furnucles on his left leg for the past week.

Reviews

Write a Review

Finance Basics Questions & Answers

  Computation of internal rate of return and npv

Computation of internal rate of return and NPV and compute the net present value for each project if the firm has a 10% cost of capital

  Completing form 1040 using schedule a

John R. Lane (SSN 123-44-6666) lives at 1010 Ipsen Street, Yorba Linda, California 90102. He wants to take advantage of the presidential election campaign check-off. John is an accountant. Other relevant information includes

  Calculation of after tax return

The Omega Company has some excess cash that it would like to invest in marketable securities for a long-term hold. Its vice-president of finance is planning three investments

  Covered interest arbitrage in annualized terms

Mary Joe has a credit line of $1,000,000 (or equivalent in major currencies) for arbitrage. She had access to the following rates, and she managed to generate CIA profits.

  Calculation of stock price and required rate of return

Calculation of stock price and required rate of return and What is the required rate of return

  Research the history of saturn and gm decision

Throughout its existence, Saturn has never turned a profit for General Motors. Research the history of Saturn and GM's decision to continue funding it.

  Problems with developing a numerical credit scoring system

Name two financing options that are available to corporations. What are the benefits and disadvantages of each?  Credit Scoring . Discuss the problems with developing a numerical credit scoring system for evaluating personal loans. You can only test ..

  Angiletta corporation-pv of future cash flows

Angiletta Corporation is considering the new project requiring $30,000 investment in test equipment with no salvage value. Calculate the net present value of investment if straight-line depreciation is used. Use 10% as the discount rate.

  Firms business risk

When examining a Company financial structure, would you be concerned with the firm's business risk? Why or why not?

  Determine the credit amount

The Snow Company issues 10,000 shares for $50 par value preferred stock for cash at $60 per share. The entry to record the transaction will consist of a debit to Cash for $600,000 and a credit or credits to

  Market buy order

Order Types Assume Dell is currently trading at $65. You think if it reaches $70 ,it will continue to climb, so you want to buy it if and when it gets there.

  Determine the financial statement disclosures

Andrews, CPA, has been engaged to audit the financial statements of Broadwall Company for year ended December 31, 20X1.

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