Calculate the stocks coefficient of variation

Assignment Help Financial Management
Reference no: EM13881283

Expected return A stock's returns have the following distribution: Demand for the Company's Products Probability of This Demand Occurring Rate of Return If This Demand Occurs

Weak 0.1 -46%

Below average 0.1 -15

Average 0.5 18

Above average 0.1 32

Strong 0.2 52

Calculate the stock's expected return. Round your answer to two decimal places.

Calculate the stock's standard deviation. Round your answer to two decimal places.

Calculate the stock's coefficient of variation. Round your answer to two decimal places.

Reference no: EM13881283

Questions Cloud

Interest is paid semiannually : 1.On March 1, 2013, Stratford Lighting issued 14% bonds, dated March 1, with a face amount of $300,000.
Create a binary heap class in python : 1. Create a binary heap class in python. 2.The Heap class should have a limited heap size.(the heap only keeps track of the n most important items) 3. pass the max heap size in the constructor. (If an element gets added to the heap that makes it grow..
What yield rate does the investor realize : Equal principal payments are made on a loan of $1000 for 10 years. Interest is paid at the rate of 10% on the outstanding principal. The lender invests the payments (interest + principal) in a fund earning 5% interest. What yield rate does the invest..
What controls should a company implement to ensure : What controls should a company implement to ensure consistency of sales information between the front end and back end of its systems?
Calculate the stocks coefficient of variation : Expected return A stock's returns have the following distribution: Demand for the Company's Products Probability of This Demand Occurring Rate of Return If This Demand Occurs. Calculate the stock's standard deviation. Calculate the stock's expected r..
Prepare an income statement for the year ended december : Prepare an income statement for the year ended December 31. Prepare a statement of retained earnings for the year ended December 31. Prepare a balance sheet at December 31.
Distinguish between b2b sales and b2c sales : Distinguish between B2B sales and B2C sales. Other than those presented in this chapter, name a company from your personal experience that uses B2C sales.
Create a web page for a company : Imagine that you have just started your own freelancing business. You have been hired to create a Web page for a company of your choice that announces the item of the week, month, or year. (e.g., Car of the Year, Pet of the Month, Sandwich of the Wee..
Approximate after-tax cost of debt for a new issue of bonds : The coupon rate on an issue of debt is 8%. The yield of maturity on this issue is 10%. The corporate tax rate is 31%. What would be the approximate after-tax cost of debt for a new issue of bonds?

Reviews

Write a Review

Financial Management Questions & Answers

  Break-even quantity

Shapland Inc. has fixed operating costs of $550,000 and variable costs of $35 per unit. If it sells the product for $75 per unit, what is the break-even quantity?

  Healthcare situation as a valuation problem

The Supreme Court of the Unites States recently upheld the Affordable Health Care Act. This act affects many businesses. How can we analyze the Healthcare situation as a valuation problem? If you were a private medical insurance company, how would yo..

  Breakeven point for number of luxury boxes in new stadium

Preliminary plans are underway for construction of a new stadium for a major league baseball team. City officials question the number and profitability of the luxury corporate boxes planned for the upper deck of the stadium. What is the breakeven poi..

  What should be the price of the stock

A share of common stock just paid a dividend of $3.25. The expected long-run growth rate for the stock is 18%. If investors require a rate of return of 24%, what should be the price of the stock?

  Prepare a loan amortization schedule for bank

Recently you bought a new condominium for $1,600,000, after paying 20% down-payment, you have decided to loan the remainder from a bank. prepare a loan amortization schedule for bank B

  What is operating leverage

What is operating leverage? How, if at all, is it similar to financial leverage? If a firm has high operating leverage would you expect it to have high or low financial leverage?

  What is the required rate of return of industries stock

AA Industries’ stock has a beta of 2.0. The risk-free rate is 7%, and the expected return on the market is 11%. What is the required rate of return on AA's stock? Round your answer to two decimal places

  What goals should always motivate the actions of a firms

what goals should always motivate the actions of a firms financial manager and why?this solution explain role of

  Use the arithmetic average-real risk-free rate

Suppose the real risk-free rate is 3.50%, the average future inflation rate is 2.50%, a maturity premium of 0.20% per year to maturity applies, i.e., MRP = 0.20% (t), where t is the years to maturity. Suppose also that a liquidity premium of 0.50% an..

  Company have to wait before expanding its operations

Meadow Brook Manor would like to buy some additional land and build a new assisted living center. The anticipated total cost is $28 million. Management has decided to save $1.4 million a quarter for this purpose. The firm earns 6 percent compounded q..

  National trucking has paid an annual dividend

National Trucking has paid an annual dividend of $1.00 per share on its common stock for the past fifteen years and is expected to continue paying a dollar a share long into the future.

  What would be the weight used for equity in the computation

Team Sports has 6 million shares of common stock outstanding, 1 million shares of preferred stock outstanding, and 200 thousand bonds ($1,000 par). If the common shares are selling for $24.50 per share, the preferred share are selling for $20 per sha..

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