What is the coefficient of variation on the companys stock

Assignment Help Finance Basics
Reference no: EM13263850

ABC Corp believes the following probability distribution exists for its stock. What is the coefficient of variation on the company's stock?

 

State of

Economy

Probability

Expected

return

Boom 45% 25%
Normal 50% 15%
Recession 5% 5%

 

Reference no: EM13263850

Questions Cloud

What is the value of trying new things : Explain how this was a new experience for you - Describe in detail your experience. Where did you go? What did you do? Who else went with you or who did you meet
Write a brief explanation of what the program did wrong : Document your test plan in a table. For each test case, document the expected program behavior and the actual program behavior. If the program does not behave according to your prediction, write a brief explanation of what the program did wrong.
What is the change in volume of the sphere : A solid lead sphere of volume 0.40m^3, dropped in the ocean, sinks to a depth of2.0*10^3 (about 1 mile), What is the change in volume of the sphere
What is the coefficient of variation on the companys stock : ABC Corp believes the following probability distribution exists for its stock. What is the coefficient of variation on the company's stock?
What is the percentage of aliasing level at the frequency f : The sampling frequency in a DSP system is fs=8 kHz. Anti-aliasing filter used in the system is the second-order Butterworth filter with cutoff frequency of fc=3.4 kHz. What is the percentage of aliasing level at the frequency f=2.5 kHz
What is the present value : A 20-year annuity pays $1,300 per month, and payments are made at the end of each month. If the interest rate is 11 percent compounded monthly for the first ten years, and 7 percent compounded monthly thereafter, what is the present value of the a..
What is the maximum frequency of the analog signal : A DSP system has a sampling frequency of 800 HZ. What is the maximum frequency of the analog signal so that the aliasing would not occur
Assuming that numbers of crimes in 4-weekly periods are : Assuming that numbers of crimes in 4-weekly periods are independent, what is the probability that there will be at least 17 in the last three of the next six 4-week periods? explain your answer

Reviews

Write a Review

Finance Basics Questions & Answers

  Compute the net present value and profitability index

Compute the net present value and profitability index of a project and with a net investment of $20,000 and expected net cash flows of $3,000

  Find opportunity cost of the trip

You can either spend spring break working at home in Alabama for dollar 100 a day for 5 days, or you can spend the week in Costa Rica where travel expenses will total dollar 800.

  How about foreign investments

If you would be index funds, which ones? How about foreign investments?

  Calculate the present value of an investment

Calculate the present value of an investment that pays $1000 in two years and $2000 in five years for certain.

  Describing currency derivatives

Mention the factors which affect currency call option premiums and briefly describe the relationship that exists for each. Do you think an at-the-money call option in euros has a higher or lower premium than an at-the-money call option in British ..

  Determine the expected return on stock

Assume the expected return on the market portfolio is 14.7% and the risk free rate is 4.9%. Morrow Inc. stock has a beta of 1.3 Suppose the capital asset pricing model holds.

  Discuss the objectives of student loans

I am conducting a detail study on the advantage and disadvantages of university students using student loans. Explain and discuss the objectives of student loans?

  Efficient frontier

Create a reasonable, but hypothetical, graph that shows risk, as measured by portfolio standard deviation, on the X axis and expected rate of return on the Y axis.

  How share of gdp affects overall economy

Explain how the health care industry's share of GDP affects the entire economy?

  What is the operating cash flow for this project

The applicable tax rate is 32 percent. What is the operating cash flow for this project?

  Find the missing amounts for companies

Find the missing amounts for companies A, B, and C. And make the journal entries necessary to record the following eight transactions.

  Find the amount of suspended passive loss

James has investments in two passive activities. Activity A, acquired 3-years ago, produces income in the current year of $175,000. Activity B, acquired last year, produces a loss of $275,000 in the current year.

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