Compute the mean and standard deviation of hpr on stocks

Assignment Help Financial Management

Reference no: EM131328181

Suppose your expectations regarding the stock price are as follows: State of the Market Probability Ending Price HPR (including dividends) Boom 0.22 $140 49.5% Normal growth 0.21 110 21.5 Recession 0.57 80 –19.0 Use Equations formula37.mml, formula55.mml to compute the mean and standard deviation of the HPR on stocks. (Omit the % sign in your response. Do not round intermediate calculations. Enter your answers as decimals rounded to 2 places.)

Mean %

Standard deviation %

Reference no: EM131328181

Questions Cloud

How much should you be willing to pay for stock : A firm expects to pay dividends at the end of each of the next four years of $2.00, $1.50, $2.50, and $3.50. If growth is then expected to level off at 8 percent, and if you require a 14 percent rate of return, how much should you be willing to pay f..

Calculate the standard deviation for the two stocks : Calculate the expected return for the two stocks. Calculate the standard deviation for the two stocks.

What trade discount does he receive using this series : Nathan is purchasing a desktop workstation to do modeling and simulations. He has specified a computer with a list price of $8650, and is being offered either a 10/5/5 trade discount series, or a 5/8/8 trade discount series. Which is the better deal?..

A price level adjusted mortgage : A price level adjusted mortgage (PLAM) has the following terms: loan amount: $128,000, real interest rate: 5.50%, 30-year term, 2.50 discount points, annual payments adjustments, monthly payments, observed inflation end of year one (EOY1): -3%, obser..

Compute the mean and standard deviation of hpr on stocks : Suppose your expectations regarding the stock price are as follows: State of the Market Probability Ending Price HPR (including dividends) Boom 0.22 $140 49.5% Normal growth 0.21 110 21.5 Recession 0.57 80 –19.0 Use Equations formula37.mml, formula55..

Real estate space markets are segmented : Real estate space markets are segmented for all of the following reasons except: Amce Inc. has a bond in its capital structure that has 20 years to maturity left. The bond has a 8.00% coupon paid annually, and has a par value of $1,000. If investors ..

Liquidity and long-term debt-paying ability : Briefly discuss ten ratios you think may be important, and include ratios from the different categories; LIQUIDITY: Days' Sales in Receivables Accounts Receivable Turnover A/R Turnover in Days Days' Sales in Inventory Inventory Turnover Inventory Tur..

Beta coefficient important when constructing a portfolio : Are portfolio managers willing to pay a premium for securities that reduce the systematic (market) risk of their portfolios? If so, why pay a premium? What makes a beta coefficient important when constructing a portfolio?

How pricing in the equity market can influence firm : Explain how pricing in the equity market can influence a firm's (capital expenditures, such as plant and equipment, or expansion)) investment decisions. Explain how financial markets might influence FACEBOOK's dividend policy.

User Account

All Pages