The standard deviation of the rate of return on investment

Assignment Help Financial Management
Reference no: EM131511674

Suppose you have a project that has a 0.5 chance of tripling your investment in a year and a 0.5 chance of doubling your investment in a year. What is the standard deviation of the rate of return on this investment?

Reference no: EM131511674

Questions Cloud

Compute price of bonds based on semiannual analysis : You are called in as a financial analyst to appraise the bonds of Olsen’s Clothing Stores. Compute the price of bonds based on semiannual analysis. Bond Price
Compute the price of the bonds for these maturity dates : Compute the price of the bonds for these maturity dates:
Capturing electrical energy while braking : Giving the vehicle a boost of electric power during acceleration, and capturing electrical energy while braking.
Compute the current price of the bonds : Compute the current price of the bonds if the percent yield to maturity is:
The standard deviation of the rate of return on investment : What is the standard deviation of the rate of return on this investment?
What must be the value of the risk-free rate : Suppose that it is possible to borrow at the risk-free rate, rf . What must be the value of the risk-free rate?
What is clean price of the bond : You purchase a bond with an invoice price of $1,150. What is the clean price of the bond?
What is reward-to-volatility ratio of risky-client portfolio : What is the reward-to-volatility ratio (S) of your risky portfolio and your client’s portfolio?
What coupon rate should company set on its new bonds : What coupon rate should the company set on its new bonds if it wants them to sell at par?

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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