Expected loss over the next year with a probability

Assignment Help Financial Management
Reference no: EM13923994

A stock has an annual return of 11 percent and a standard deviation of 44 percent. What is the smallest expected loss over the next year with a probability of 1 percent? (Negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Omit the "%" sign in your response.)

Smallest expected loss  %

Reference no: EM13923994

Questions Cloud

What new trading systems on the nyse and on nasdaq have made : What new trading systems on the NYSE and on NASDAQ have made it possible to handle the growth in U.S. trading volume? What are the three recent innovations that contribute to competition within the U.S. equity market?
What is the after-tax cost of capital to walgreen for bonds : The Walgreen Corporation is contemplating a new investment that it plans to finance using one-third debt. The firm can sell new $1000 par value bonds with a 15 year maturity at a price of $946 that carry a coupon interest rate of 12.4 percent that is..
Psychiatric conditions: bias and shame : Psychiatric Conditions: Bias and Shame. Prior to engaging in this discussion, read Chapters in your text as well as the articles by Clark, et al. (2013) and Cummins (2013). It is highly recommended that you also watch one or two of the videos on m..
Are they likely to make economic profits initially : Are they likely to make economic profits initially? Can they continue to make economic profits in the long term? Why or why not? Discuss. What advice would you give to Alba and Gavigan to help them make more profit in the long term?
Expected loss over the next year with a probability : A stock has an annual return of 11 percent and a standard deviation of 44 percent. What is the smallest expected loss over the next year with a probability of 1 percent?
Compared and contrasted rorschach and mmpi : Submit your response to the: Assignment by Wednesday, August 5, 2015. a) Compared and contrasted Rorschach and MMPI
Jernigan corporation balance sheets : Condensed balance sheet and income statement data for Jernigan Corporation are presented here: Compute the following ratios for 2013 and 2014.
Implement the client and server components : The basic requirements of this assignment are to implement the client and server components as discussed above. The basic protocol of the system is described below: The operations of the client are: SEND_SERVER_MESG: send a basic text message to th..
Derive ggc marginal revenue and marginal cost curves : Derive GGC's marginal revenue (MR) and marginal cost (MC) curves in each market. Show graphically GGC's demand, MR, and MC curves for each market. Derive algebraically the quantities that should be produced and sold, and the prices that should be c..

Reviews

Write a Review

Financial Management Questions & Answers

  What is the price of the combined test

What is the price of the combined test assuming marginal cost pricing - assume that allied wants a contribution margin of $10 per test. What price must be set to achieve this goal?

  Effective annual risk-free rate of interest

A put option on a stock with a current price of $48 has an exercise price of $50. The price of the corresponding call option is $4.50. According to put-call parity, if the effective annual risk-free rate of interest is 6% and there are four months un..

  What is the cost of goods sold

What is the cost of goods sold?

  What is current price of bond and fair price for this bond

You have a bond with annual coupon payments of $30, the interest rate for comparable bonds is 5%, and there is a maturity value of $150 in 4 years. What is the current price of the bond? You buy a bond that is selling at par. ($100 face value, 8% cou..

  Explain how using a risk-adjusted discount rate improves

Explain how using a risk-adjusted discount rate improves capital budgeting decision making compared to using a single discount rate for all projects?

  Estimate ringers net profits before taxes

Rimier corp forecasts 647000 for 2016. Assume the firm has fixed costs of 253000 and variable costs amounting to 35% of sales. Operating expenses are estimated to include fixed costs of 34000 and a variable point equal to 9.1% Of sales. Interest expe..

  What must the average beta of the new stocks added

What must the average beta of the new stocks added to the portfolio be to achieve the desired required rate of return

  Value of savings account

At the end of 2011, the value of my savings account was $20,000. Over the next three years, the rates of return on the account were as shown below. How much was in the account at the end of the third year, 2014?

  What does the efficient market hypothesis

If the public expects a corporation to lose $5 a share this quarter and it actually loses $4, which is still the largest loss in the history of the company, what does the efficient market hypothesis say will happen to the price of the stock when the ..

  Explain what does the market believe will be the stock price

The dividend is expected to grow at some constant rate g, the stock currently sells for $33 a share. Assuming the market is in equilibrium, what does the market believe will be the stock price at the end of 3 years (i.e.,what is P^3)?

  What is the net present value

What is the Net Present Value (NPV) of the asset if the company's required rate of return on such assets is 10%?

  Assume that all cash flows except initial investments

The city of Middleville is considering offering public bus service. Setting up the service will cost the city $1.4M (where M stands for million). The useful life of the buses is 18 years. Annual maintenance of the buses would cost $120,000 per year a..

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