Economy probability of state of economy portfolio return

Assignment Help Financial Management
Reference no: EM131066340

Consider the following information: State of Economy Probability of State of Economy Portfolio Return If State Occurs Recession .29 − .14 Boom .71 .24 Calculate the expected return. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Reference no: EM131066340

Questions Cloud

Basic rules of assignments : 1. Discuss whether or not the assignment is valid. 2. Analyze whether or not the rights can be assigned or if they are prohibited under the basic rules of assignments
What is the effective annual rate of return : When a professor was working on his phd, he was being paid to do research. the university forced him to make monthly deposits to a retirement program. after finishing his phd 10 years ago, he stopped making the monthly deposits and completely forgot ..
Determine the magnitude and coordinate direction angle of f : determine the magnitude and coordinate direction angle of f
Define positive and negative punishment : "Define positive and negative punishment, and give an example of each. Explain the rules for implementing punishment."
Economy probability of state of economy portfolio return : Consider the following information: State of Economy Probability of State of Economy Portfolio Return If State Occurs Recession .29 − .14 Boom .71 .24 Calculate the expected return.
Calculate the expected return for each stock : Consider the following information: Rate of Return If State Occurs State of Probability of Economy State of Economy Stock A Stock B Recession .15 .06 − .10 Normal .56 .09 .19 Boom .29 .14 .36 Calculate the expected return for each stock.
Describe some of costing systems available to controller : Describe some of the costing systems available to the controller and how the controller can use them for different applications and different types of organizations. Which of these costing systems are available either at your organization or one whic..
Marketing manager for a chain of home-ware stores : You are the marketing manager for a chain of home-ware stores in Brisbane called Houzit. The marketing plan for the 15 Houzit stores was developed over 12 months ago and you are actively engaged in implementing the strategies to achieve the ma..
Centers for medicare and medicaid services : Your practice has just been notified that the Centers for Medicare and Medicaid Services (CMS) will be conducting an audit, starting two weeks from now.  They will be doing a sampling audit of records over the first six months of 2014.  There will..

Reviews

Write a Review

Financial Management Questions & Answers

  The weight of debt in the firms capital structure

As a consultant to GBH skiwear, you have been ask to compute the appropriate discount rate to use to evaluate the purchase of a new warehouse facility. The firm's marginal tax rate is 34%. What discount rate should you use to evaluate the warehouse p..

  Issued some new preferred stock

E-Eyes.com just issued some new preferred stock. The issue will pay an annual dividend of $15 in perpetuity, beginning 20 years from now. If the market requires a return of 4.5 percent on this investment, how much does a share of preferred stock cost..

  What is the value of this annuity four years from now

A 4-year annuity of eight $6,200 semiannual payments will begin 6 years from now, with the first payment coming 6.5 years from now. If the discount rate is 7 percent compounded semiannually, what is the value of this annuity 4 years from now?

  What is the current value of this stock if the discount rate

Blackwater Tours pays an annual dividend which increases by 4 percent each year. The next dividend is expected to be $1.36 a share. Blackwater recently announced that they will be ceasing all dividends after 3 more years as they are planning a major ..

  What must the beta be for the other stock in your portfolio

You own a portfolio equally invested in a risk-free asset and two stocks. One of the stocks has a beta of 1.15 and the total portfolio is equally as risky as the market. What must the beta be for the other stock in your portfolio?

  Production for an initial investment in equipment

Better Mousetraps has developed a new trap. It can go into production for an initial investment in equipment of $5.4 million. The equipment will be depreciated straight line over 6 years to a value of zero, but in fact it can be sold after 6 years fo..

  What is the monthly mortgage payment

What is the Monthly Mortgage Payment for a 15-yr fixed rate mortgage with an interest rate of 3.00%, 1 point and $2000 in fees on a home with a value of $225,000 and an LTV of 93%?

  Estimated market value of the promised payment at maturity

A “century” bond has a 6 percent coupon rate and makes semiannual payments ($30 every six months). The yield to maturity is 4 percent and the maturity date is December 11, 2115. You should assume that today is December 11, 2015. What is the estimated..

  How many crews should be scheduled

The Canadian government has built a large grain-shipping port at Churchill, Manitoba, on the Hudson Bay. Grain grown in southern Manitoba is carried by rail to Churchill during the open-water shipping season. The port can remain open only 50 days per..

  What are the firms interest tax savings

ABC has EBIT of $571,000, interest expenses of $263,000, and faces a corporate tax rate of 36%. What is ABC's net income? What would ABC's net income be if it didn't have any debt/no interest expense? What are the firm's interest tax savings?

  Two bonds outstanding-what payoff can the holders of bond

Sludge Corporation has two bonds outstanding, each with a face value of $2 million. Bond A is a senior bond; bond B is subordinated. Sludge has suffered a severe downturn in demand, and its assets are now worth only $3 million. If the company default..

  Health plans currently uses zero-debt financing

Seattle Health Plans currently uses zero-debt financing. Its operating income (EBIT) is $1 million, and it pays taxes at a 40 percent rate. It has $5 million in assets and, because it is all-equity financed, $5 million in equity. Suppose the firm is ..

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