Expected standard deviation of stock return

Assignment Help Finance Basics
Reference no: EM131061261

1) If the market risk premium is 5%, the risk-free rate is 3%, and the estimated expected return on stock is 7%, what must be the estimated "beta" for that stock?

2) Suppose there is 50% chance of a 1% gain on a stock and a 50% chance of a 1% loss on a stock. What is the expected standard deviation of this stock's return?

Reference no: EM131061261

Questions Cloud

What national supreme court ruling is in effect today : Using the supplement book, what are the main arguments from each side? Remember, this is the main part of your paper. Read the unit thoroughly and discuss the "for" side and "against" side.
What is the coupon payment for bond : A five year bond with a face value of $1000, a coupon rate of 6%, with semiannual payments.
Recommendations about solving management problems : Two pages essay just recommendations about solving management problems for this Los angeles city for angels medical center indicated for mid cal fraud article below just open the links and do recommendations about the management in this hospital ..
Price of a common share of stop : Med Sci. Inc just paid $0.50 per common share dividend which is expected to grow by 10% each year into the indefinite future. If the market discount rate for Med sci Inc. Common stock is 14% what must the price of a common share of stop be today?
Expected standard deviation of stock return : Suppose there is 50% chance of a 1% gain on a stock and a 50% chance of a 1% loss on a stock. What is the expected standard deviation of this stock's return?
Estimate the gas pressure drop across the tray : Caps are arranged on equilateral-triangle centers staggered perpendicular to direction of liquid flow, and liquid depth above caps is less than 1 in.
Draw a few key moments together in a reflection : Having watched the documentary, please write a 400-500 word response that incorporates at least three citations to the film, noting the exact time from which they were drawn (e.g. "BBS" 15:21). You can do whatever you like in this response: summa..
Chance of expansion next year : 1) You believe there is a 60% chance of recession and 40% chance of expansion next year. If the annual return on PJ Nickel is -3% in a recession and 5% in an expansion, what do oyu expect the return on PJ Nickle to be next year?
Does cn rail have an effective corporate governance system : SEDAR is a free service in Canada where you can find the annual reports of all Canadian public companies and other regulatory filings. Does CN Rail have an effective corporate governance system? Explain.

Reviews

Write a Review

Finance Basics Questions & Answers

  Machine y will produce cost savings of 4000 per year for 5

machine x will produce cost savings of 5000 per year for 4 years machine y will produce cost savings of 4000 per year

  Budget analysis

Budget Analysis

  Find the amount of short-term capital gain

In August 2007, John Titus bought 200 shares of a listed stock for $25,000. In September 2007, Titus sold this stock for its fair market price of $28,000 to the partnership of Black, Blue, and Titus.

  Compare the current and previous impact on shareholders

Currently a company has $1 million in 10 percent debt. The firm also has 50,000 shares outstanding that sell for $40 each. The company used the $1.0 million to repurchase stock.

  A firm has common stock of 84 paid-in surplus of 200 total

a firm has common stock of 84 paid-in surplus of 200 total liabilities of 380 current assets of 330 and fixed assets of

  Lease and buy decision making using present value technique

Lease and Buy decision making using present value technique and Calculate the present value of the cash flows for both the lease and the purchase alternatives

  What is the future value

What is the future value of $5,000 in 10 years at 5%, compounded monthly?

  Standard amounts normally ordered

Question 1: During the sales order entry process, a ________ is performed to compare the quantity ordered with the standard amounts normally ordered.

  The consequences of the slow down

The consequences of the slow down of the Chinese economy? Write up one summary 3 pages long

  Summarize your thoughts about three key financial metrics

Summarize your thoughts and ideas about three key financial metrics of interest to stockholders and then three key metrics of interest to one of the following groups: bankers, bondholders, managers, consumers, politicians.

  Determine the value common stock

Scotto Manufacturing is a mature company in the equipment tool component industry. The company's most recent common stock dividend was $2.40 per share.

  Details of the case authority and leadership

Review the details of the case Authority and Leadership: Rising From the Ranks from your course text, and respond to the following questions:

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