Calculate the expected value of return

Assignment Help Financial Management
Reference no: EM131928193

Integrativelong-Expected return, standard deviation, and coefficient of variation An asset is currently being considered by Perth Industries.

The probability distribution of expected returns for this asset is shown in the following table,

a. Calculate the expected value of return,r overbar, for the asset.

b. Calculate the standard? deviation,sigma Subscript rsr, for the asset's returns.

c. Calculate the coefficient of? variation,CV?, for the asset's returns.

a. The expected value of? return,r overbarr?, for the asset is _______%

PLEASE ANSWER ALL 4 QUESTIONS

?(Round to two decimal? places.)

1 0.1 35.00%
2 0.05 20.00%
3 0.6 10.00%
4 0.15 5.00%
5 0.1 -5.00%

Reference no: EM131928193

Questions Cloud

Firm price-earnings ratio up to two decimal places : The company's share price is $13.48, and the company has 312,880 shares outstanding. Compute the firm's price-earnings ratio up to two decimal places.
Prepare appropriate journal entry for b to record income tax : Prepare the appropriate journal entry for B to record the income tax provision for the current year. Show well-labeled supporting computations
Explain why a person starting up a small business : Explain why a person starting up a small business probably stands a better chance of raising money by applying for a bank loan than by issuing bonds.
What is the firm accounts receivables turnover : What is the firm's accounts receivables turnover? (Give your answer up to two decimal places)
Calculate the expected value of return : Integrativelong-Expected return, standard deviation, and coefficient of variation An asset is currently being considered by Perth Industries.
Explain the advantages of using the XIRR function : Explain the advantages of using the XIRR function rather than the IRR function for calculating a bond's yield to maturity.
Explain in words why the present values would be higher : If the interest rate is 4 percent instead of 6 percent, please explain in words why the present values would be higher.
How the bond price will be expected to adjust across time : Given the problem above, identify how the bond price will be expected to adjust across time as the bond approaches maturity.
What is weekly economic profit : If John's weekly accounting profit is $1,000 per week, what is his weekly economic profit? Was this a good decision for John?

Reviews

Write a Review

Financial Management Questions & Answers

  What is the bond price today if the coupon is paid anually

A 1000 par bond with an anual coupon has only 1 year until maturity. its current yeild is 7.621% and its yeild to maturity is 12%. what is the price of the bond

  What is the market segmentation theory of interest rates

What is the market segmentation theory of interest rates ?

  Compute the after tax salvage value of the equipment

Your firm is considering a new product development. an outlay of $90,000 is required for equipment, and an additional net working capital of $5000 is required. What is the project's After-Tax operating cash flow during years 1-4 from the machine? (it..

  Firm is considering three mutually exclusive alternatives

A firm is considering three mutually exclusive alternatives as part of an upgrade to an existing transportation network.

  Calculate the price of the call

Consider a European call on a stock when there are ex-dividend dates in four months and seven months. Calculate the price of the call.

  How many years will it take to reach your retirement goal

Your goal is to have $4M in your retirement account on the day you retire. how many years will it take to reach your retirement goal.

  Assume annual coupons for all three bonds

A three-year bond with 2.5% annual coupons yields 3%. A one-year zero coupon bond yields 2.80% and a three-year zero coupon bond yields 2.95%. Using the concept of bootstrapping, what is the two-year spot rate? Assume annual coupons for all three bon..

  What is this bank ratio of total capital to risk assets

A bank has $200 million in assets in the 0 percent risk-weight category. It has $400 million in assets in the 20 percent risk-weight category. It has $1,000 million in assets in the 50 percent risk-weight category and has $1,000 million in assets in ..

  Compute the extate tax liability

Greta Cook died in 2015. Her gross estate was $5,580,000, administration expenses were $60,000, and adjusted taxable gifts were $20,000. Compute the extate tax liability.

  Type of investment strategy and portfolio

Provide a description on how NASDAQ is calculated and the type of investment strategy/portfolio that it reflects, if any.

  Price of the bond implied by the duration approximation

What would be the percentage change in the price of the bond implied by the duration approximation?

  What are the expected dividend growth rates for each firm

Below are the data for two stocks, both of which have a discount rate of 10 percent: Stock A Stock B Return on equity 11% 12% Earnings per share $2.20 $.90 Dividends per share $ .95 $.50 a. What are the dividend payout ratios for each firm? b. What a..

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