Determine standard deviation of the expected return

Assignment Help Financial Management
Reference no: EM131526838

Following are three economic states, their likelihoods, and the potential returns:

Economic State Probability Return

Fast growth 0.32 38 %

Slow growth 0.34 11

Recession 0.34 –31

Determine the standard deviation of the expected return.

Reference no: EM131526838

Questions Cloud

Is this bond currently trading at a discount or premium : The bond has a yield to maturity of 6%. Is this bond currently trading at a “Discount” or a “Premium”?
Determine the top three blogs for customers and employees : Determine the top three blogs for customers and for employees, and critique the blogs for content, ease of use, and overall value
Simple rate of return on this bond : If you expect to earn a 12 percent simple rate of return on this bond, how much did you pay for it?
Irr-investment life and cash inflows : IRR, investment life, and cash inflows Oak enterprise accepts projects earning more than the firms 15% cost of capital.
Determine standard deviation of the expected return : Following are three economic states, their likelihoods, and the potential returns: Determine the standard deviation of the expected return.
What is aftertax salvage value of the asset : An asset used in a four-year project falls in the five-year MACRS class for tax purposes. what is the aftertax salvage value of the asset?
The company pledges to maintain a constant : Afterward, the company pledges to maintain a constant 5 percent growth rate in dividends forever. what is the current share price?
Exporters incorporated hedge exports with forward contract : Based on this expectation should Exporters Incorporated hedge its exports with a forward contract?
Which takeover defenses does the market seem to like : Why might an investor invest in a company that does not pay any dividends? Which takeover defenses does the market seem to like? Which does it dislike? Why?

Reviews

Write a Review

Financial Management Questions & Answers

  Starting again with the conditions in part a

Starting again with the conditions in part a, what is capital increases by 5% so that it is now 420. By how much does output increase?

  How much life insurance should they purchase for marty

If Marty were to die, Mary would go back to school part-time to upgrade her training as a nurse. This would cost $20,000. They have a mortgage on their home with a balance of $55,000. How much life insurance should they purchase for Marty?

  What is the total present value of the property

What is the present value of the equity interest in the property? What is the total present value of the property?

  Find the simple rate of interest on transactions

Find the simple rate of interest on the following transactions using the dollar weighted method $312.50 initial deposit on March 15.

  What is the amount of the firms total stockholder equity

Purple Dalia, Inc. has the following balance sheet statement items: total current liabilities of $661,707; net fixed and other assets of $1,460,400; total assets of $3,334,150; and long term debt of $744,753. What is the amount of the firms’ total st..

  Maintain a constant growth rate in dividends

Apocalyptica Corporation is expected to pay the following dividends over the next four years: $5.90, $16.90, $21.90, and $3.70. Afterwards, the company pledges to maintain a constant 6.00 percent growth rate in dividends, forever.

  Calculate the NPV of this investment opportunity

FastTrack Bikes, Inc. is thinking of developing a new composite road bike. Development will take six years and the cost is $191,000 per year. Once in production, the bike is expected to make $286,500 per year for 10 years. Calculate the NPV of this i..

  Find all of the crossover quantities

A company wants to select the most economical site for a new factory. Find all of the crossover quantities

  Stock price according to the constant growth dividend model

Marco Chip, Inc just issued zero-coupon bonds with a par value of $1000. The bond has a maturity of 14 years and a yield to maturity 0f 6.96%, compound semi-annually. What is the current price of the bond? The last dividend of Delta, Inc was $2.69, t..

  What should be the primary objective of managers

What is the weighted average cost of capital? How do free cash flows and the weighted average cost of capital interact to determine a firm's value? What should be the primary objective of managers?

  Zero coupon treasury bonds are currently selling

The U.S. 5-years zero coupon Treasury bonds are currently selling at $791,031.15. No payments will be made until the bond matures 5 years from now, at which time it will be redeemed for $1,000,000. What annualized interest rate would you earn if you ..

  Management and financial assistance to small businesses

Why does the SBA concentrate on providing management and financial assistance to small businesses?

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