Calculate the expected rate of return and rb

Assignment Help Financial Management

Reference no: EM132014808

EXPECTED RETURNS Stocks A and B have the following probability distributions of expected future returns: Probability A B 0.2 (6%) (31%) 0.2 2 0 0.3 10 22 0.2 22 25 0.1 31 48 Calculate the expected rate of return, rB, for Stock B (rA = 9.70%.) Do not round intermediate calculations. Round your answer to two decimal places. 10.2 % Calculate the standard deviation of expected returns, A, for Stock A (B = 24.26%.) Do not round intermediate calculations. Round your answer to two decimal places. % Now calculate the coefficient of variation for Stock B. Round your answer to two decimal places.

Reference no: EM132014808

Questions Cloud

Post a brief description of the possible health outcomes : Post a brief description of the possible health outcomes that may be experienced by individuals exposed to toxic substances with regard to this case study.

Payment five years from now be worth in us dollars : Currently, you can buy 5,200RS for $100. How much will the payment five years from now be worth in U.S. dollars?

Would the organization benefit from keeping the disaster : Would the organization benefit from keeping the disaster and its impact on its operations internal to the organization? If yes, why? If not, why?

Analyze the facets of organizational culture : Analyze the facets of organizational culture, including influences and functions, challenges related to changing the culture, and the impact of culture.

Calculate the expected rate of return and rb : Calculate the expected rate of return, rB, for Stock B (rA = 9.70%.)

Describe the traditional definition of the digital divide : As we have experienced, the Internet and its related technologies has a dramatic impact on the nature and quality of our lives.

Question deals with analyzing a management problem : Your last thought question deals with analyzing a management problem. Read the following situation and factors, then write what you would

What is the relationship between the coupon rate : What is the relationship between the coupon rate, changes in the market rate and the value of these bonds?

Determine a course of action you would recommend : Determine a course of action you would recommend to the director, justifying your response. Provide and justify recommendations if the company's needs were.

User Account

All Pages