Describes the probability that this stock will not lose

Assignment Help Financial Management
Reference no: EM13987890

A stock had returns of 8%, 39%, 11%, and -24% for the past four years. Which one of the following best describes the probability that this stock will not lose more than 43% in any one giver year? The answer choices are 84.0%, 95.0%, 97.5%, 99.0% and 99.5%.

Reference no: EM13987890

Questions Cloud

Decide between saving in traditional IRA-saving in Roth IRA : Suppose a taxpayer is trying to decide between saving in a traditional IRA and saving in a Roth IRA. If the taxpayer needs the savings before reaching age 59½, should the client avoid the IRA because of the 10% early withdrawal penalty? Why or why no..
What are the two main categories of weathering : What are the two main categories of weathering? In what ways are they different? Mechanical or physical weathering: explain how water, salt crystal growth and biological activity can cause mechanical weathering. Give examples of each
What is the estimated value per share of your firms stock : Assume that the average firm in your company's industry is expected to grow at a constant rate of 6% and that its dividend yield is 7%. Your company is about as risky as the average firm in the industry, after which growth should return to the 6% ind..
Underlying causes of project cost overruns understanding : Underlying Causes of Project Cost Overruns Understanding the reasons for past project overruns provides valuable lessons to improve future cost estimates. Research the ITT Tech Virtual Library to find a real-life case study about a project that overr..
Describes the probability that this stock will not lose : A stock had returns of 8%, 39%, 11%, and -24% for the past four years. Which one of the following best describes the probability that this stock will not lose more than 43% in any one giver year? The answer choices are 84.0%, 95.0%, 97.5%, 99.0% and ..
Equilibrium with the required equal to the expected return : Simpkins Corporation does not pay any dividends because it is expanding rapidly and needs to retain all of its earnings. However, investors expect Simpkins to begin paying dividends, with the first dividend of $0.50coming 3 years from today. If the r..
What is the projects net present value if the tax rate : A project has an initial requirement of $89,218 for equipment. The equipment will be depreciated to a zero book value over the 5-year life of the project. The investment in net working capital will be $21,134. All of the net working capital will be r..
Financial intermediarie play crucial role in economic crisis : “Financial intermediaries play a crucial role in an economic crisis–they are responsible for both causing the market to crash and then helping it recover from the crisis.” Is this statement true? Discuss with an example.

Reviews

Write a Review

Financial Management Questions & Answers

  Financial company that advertises on television

A financial company that advertises on television will pay you $61,000 now for annual payments of $9,400 that you are expected to receive for a legal settlement over the next 11 years. Assume you estimate the time value of money at 12 percent.

  What is the total return on this investment

One year ago, Neal purchased 3,600 shares of Franklin stock for $101,124. Today, he sold those shares for $26.60 a share. What is the total return on this investment if the dividend yield is 1.7 percent?

  An investment project has annual cash inflows

An investment project has annual cash inflows of $3,800, $4,700, $5,900, and $5,100, for the next four years, respectively. The discount rate is 14 percent. What is the discounted payback period for these cash flows if the initial cost is $8,600?

  Futures market to minimize the volatility of her position

A manager is holding a $1.6 million stock portfolio with a beta of 1.1. She would like to hedge the risk of the portfolio using the S&P 500 stock index futures contract. How many dollars worth of the index should she sell in the futures market to min..

  Preferred stock dividend growth rate

Suppose that Belly Laugh Inc.'s preferred stock pays an annual, fixed, and perpetual dividend of $8.36. What is Belly Laugh's preferred stock dividend growth rate? What would the standard returns be for part c? What would the log returns be for part ..

  Considered the most rational action for tax-paying investor

Which one of these would generally be considered the most rational action for a tax-paying investor?

  Outstanding with various times-to-maturity and coupon rates

Microsoft currently has 21 long-term bond issues outstanding with various times-to-maturity and coupon rates. One of these bonds matures on June 1, 2039, approximately 25 years from today. The bond is currently selling for $1,153.06, based on a face ..

  Average tax rate paid for a firm with taxable income

What is the (1) marginal and (2) average tax rate paid for a firm with taxable income of a). $25,000? b). $85,000? c). $250,000? d). $12 million? e). $200 million?

  What is the present value of this growing perpetuity

You are evaluating a growing perpetuity product from a large financial services firm. The product promises an initial payment of $24,000 at the end of this year and subsequent payments that will thereafter grow at a rate of 0.03 annually. If you use ..

  Futures contracts have less default risk

Which of the following events is likely to increase the value of put options on the common stock of GCC Company? Futures contracts have less default risk because the exchange acts as the counterparty for all transactions. Forward contracts trade on a..

  Estimating the firms cost of equity capital

Regarding the firm’s WACC estimate, list and explain two real-world problems encountered in estimating the firm’s cost of equity capital. Be specific.

  Determine the desirability of investment projects

In general, a dollar received today is more valuable than a dollar received one year from now. We can invest the dollar we have today to earn interest so that at the end of one year we will have more than one dollar. determine the desirability of inv..

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