Calculate the standard deviation of the project

Assignment Help Finance Basics

Reference no: EM131971026

Question: You have estimated the IRR for a new project with the following probabilities: Possible IRR Value Probability 4% 5% 7% 15% 10% 15% 11% 50% 14% 15%

a. Calculate the expected IRR of the project.

b. Calculate the standard deviation of the project.

c. Calculate the coefficient of variation of the new project.

d. Calculate the expected IRR of the new portfolio with the new project. The current portfolio has an expected IRR of 9% and a standard deviation of 3% and will represent 60% of the total portfolio.

e. Would you advise accepting this new project? Justify your answer.

Reference no: EM131971026

Questions Cloud

Regain temperature homeostasis : Describe at least four different changes that would occur in Mrs's Chan's body to regain temperature homeostasis.

Calculate the npv of the project : In Year 5, The Long Company will incur costs of $42,500 related to the project. If the WACC is 6 percent, calculate the NPV of the project.

How much must each deposit be : You estimate you'll need $200,000 per year for 25 years starting on your 65th birthday to live on during your retirement.

What amount of cash will be made available for other uses : Credit sales are $2,500,000 per year, billed on a continuous basis. The firm has other equally risky investments with a return of 10?%.

Calculate the standard deviation of the project : You have estimated the IRR for a new project with the following probabilities: Possible IRR Value Probability 4% 5% 7% 15% 10% 15% 11% 50% 14% 15%.

Competent health history-assessment : Describe an incident, or incidents, in your own nursing practice in which you expressed social or cultural sensitivity in order to elicit a competent health.

How can we best deal with the given hazards in the future : How it may have been affected by indoor or outdoor hazards in the past? How can we best deal with these hazards in the future?

Find an arbitrage trade and show the profit from your trade : You look up a 15-month bond forward contract and find the following: the current price of the bond is $1200, and the forward price is $1300.

Major types of cellular adaptation : The four major types of cellular adaptation are hypertrophy, hyperplasia, metaplasia and dysplasia. Briefly describe each of these types of cellular adaptation

User Account

All Pages