Probability range of returns for any one given year

Assignment Help Financial Management
Reference no: EM13940328

A stock had annual returns of 16 percent, 8 percent, -17 percent, and 21 percent for the past four years. Based on this information, what is the 95 percent probability range of returns for any one given year?

Reference no: EM13940328

Questions Cloud

Calculate the total withholding : Calculate dependent deductions at 2.0% of the employee's salary for each dependent.
Compute the per-unit manufacturing cost for job : Compute the predetermined overhead rate. Using the predetermined rate, compute the per-unit manufacturing cost for Job 330.
Explain a drug problem in your community : Explain a drug problem in your community and how you might solve this problem if you were a cop? Who might need to be involved in the process?
Discuss the importance of communication : Discuss the importance of communication, consultation and stakeholder management, with reference to:
Probability range of returns for any one given year : A stock had annual returns of 16 percent, 8 percent, -17 percent, and 21 percent for the past four years. Based on this information, what is the 95 percent probability range of returns for any one given year?
Invest in the money market : Plan to use the savings over the next five years to make a down payment. She needs 15000 in 5 years how much does she need to invest in the money market account semi-annually over the next five years.
Issue of preferred stock outstanding : Moraine, Inc., has an issue of preferred stock outstanding that pays a $6.55 dividend every year in perpetuity. If this issue currently sells for $91 per share, what is the required return?
How much will you pay for the companys stock today : Caan Corporation will pay a $2.86 per share dividend next year. The company pledges to increase its dividend by 3.5 percent per year indefinitely. If you require a return of 10 percent on your investment, how much will you pay for the company’s stock..
Discussions of tutorial presentation made : In pairs, students will need to research and present a 20 minute tutorial discussion on a given topic. Students will also be required to participate in discussions of each tutorial presentation made.

Reviews

Write a Review

Financial Management Questions & Answers

  Everest has also found that after only two years of using a

everest has also found that after only two years of using a machine for a semi-automatic process a more advanced model

  Find the present value of one credit card to the bank

First National Bank has a credit card department. The average cardholder charges $600 a month, and pays off the entire balance 60 days after the purchase. The cardholders do not pay any interest, but they do pay $25 membership fee, in advance, every ..

  Calculate the metrics of capital budgeting

Identify relevant incremental cash flows - Calculate cost of capital (k-wacc) to use as the discount rate and calculate the metrics of capital budgeting: Net Present Value, Profitability Index,

  What is the projects payback period

A project has an initial cost of $59,675, expected net cash inflows of $12,000 per year for 9 years, and a cost of capital of 12%. What is the project's payback period? Round your answer to two decimal places

  Corporate insiders earn abnormal profits on their trades

Do empirical studies support or reject the notion that corporate insiders earn abnormal profits on their trades? What about outside investors who mimic their trades? What forms of market efficiency, if any, are supported by these studies?

  What is the large cap risk premium given the returns

What is the large cap risk premium given the following returns?

  Financial analysts forecast limited brands growth rate

Financial analysts forecast Limited Brands growth rate for the future to be 9 percent. Limited Brand’s most recent dividend was $0.75. What is the value of Limited Brands stock when the required return is 14 percent? If the current price were $18.00,..

  Compute the civil fraud penalty the irs may impose

Compute the civil fraud penalty the IRS may impose. Describe the procedural steps the IRS must take to charge the couple with criminal fraud. Why might the IRS decide to impose a civil fraud penalty on Mr. and Mrs. Jessel but not charge them with cri..

  Using the formula and financial calculator methods

What is the present value of a 6-year annuity of $2,250 per period in which payments come at the beginning of each period? The interest rate is 10 percent. Use Appendix D for an approximate answer, but calculate your final answer using the formula an..

  What will the cash flows for this project be during year

You have been asked by the president of your company to evaluate the proposed acquisition of a new special-purpose truck for $210,000. The truck falls into the MACRS 10-year class, and it will be sold after 10 years for $21,000. What will the cash fl..

  Have the greatest effect on the projects profitability

Why is it important for managers to know the critical input variables, where critical is defined as the variables that, when changed, have the greatest effect on the project’s profitability?

  Best estimate of the companys cost of equity

Stock in Daenerys Industries has a beta of 1.1. The market risk premium is 7 percent, and T-bills are currently yielding 5 percent. The company’s most recent dividend was $1.40 per share, and dividends are expected to grow at an annual rate of 7 perc..

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