Standard deviation of the estimated returns

Assignment Help Finance Basics
Reference no: EM132459580

Problem: Stuart Company's manager believes that economic conditions during the next year will be strong, normal, or weak, and she thinks that the firm's returns will have the probability distribution shown below. What's the standard deviation of the estimated returns? (Hint: Use the formula for the standard deviation of a population, not a sample.)

Economic

Conditions

Prob. Return

Strong 30% 26.00%

Normal 40% 10.0%

Weak 30% -16.0%

Reference no: EM132459580

Questions Cloud

How will you justify decision-making process : Your partner tells you to lie to your client about his tax returns whereabouts. What should you do and how will you justify your decision-making process
What was caterpillar book debt-to-value ratio : In 2018, Caterpillar Inc. had about 650 million shares outstanding. Their book value was $25.0 per share, and the market price was $155.80 per share
Summarize what surprise you regarding nursing administration : For each article summarize what you learned or surprised you regarding nursing administration, education, or advanced practice. (Modules 2-7 Discussions must.
Relationship between investment risk and investment return : 1. What is the relationship between investment risk and investment return? 2. Define and explain the concept of standard deviation.
Standard deviation of the estimated returns : What's the standard deviation of the estimated returns? (Hint: Use the formula for the standard deviation of a population, not a sample.)
Compare first and second-generation antihistamines : What are your treatment options (consider pharmacoeconomic)? Compare first and second-generation antihistamines. What education will you provide to the patient?
What is the total value of icarus : What is the total value of Icarus? What is the value of the company's equity?
Analyse the causes of a business cycle : Analyse the effect of the contraction phase on the vulnerable members of society and Analyse the causes of a business cycle according to interventionist
What cultural beliefs or practices must be considered : What cultural beliefs or practices must be considered when creating a care plan? What cultural theory or model would be best to support culturally competent.

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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