Calculate the stock expected return

Assignment Help Accounting Basics
Reference no: EM131754551

Question - Expected return A stock's returns have the following distribution:

Demand for the Probability of This Rate of Return If This Company's Products Demand Occurring Demand Occurs

Weak 0.1 (50 %)

Below average 0.2 (5)

Average 0.4 16

Above Average 0.2 25

Strong 0.1 60

1.0

Calculate the stock's expected return, standard deviation, and coefficient of variation.

Reference no: EM131754551

Questions Cloud

Use of high-performance teams/groups in organizations : The management consulting firm McKinsey & Co., Inc., recommends the use of high-performance teams/groups in organizations.
Create a general systems flow chart : Every pharmaceutical listed on the hospital's formulary has a minimum reorder level. When the inventory level of the specific drug reaches this minimum reorder.
How does the industry life cycle affect business strategy : How does the industry life cycle affect business strategy? Detail your answer based on each stage: introduction, growth, maturity and decline.
Discuss how much will the abnormal earning change : Uhler Manufacturing has income of $25,000. The cost of equity is 20% and the book value(t-1) is $125,000
Calculate the stock expected return : Expected return A stock's returns have the following distribution: Calculate the stock's expected return, standard deviation, and coefficient of variation
In the case of social media influencer marketing : In the case of social media influencer marketing, which of the following is NOT TRUE?
Discuss a cumulative effects adjustment at the bottom : A Cumulative Effects adjustment at the bottom of the income statement b. A Cumulative Effects adjustment to Retained Earnings
What are the ethical dilemmas at target corporation : What are the ethical dilemmas at Target corporation?
What unified credit can sue claim on her return : What unified credit can Sue claim on her 2009 return if she made the 1976 gift in December instead of March

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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