What is the expected return given the historical data

Assignment Help Financial Management
Reference no: EM13809753

What is the expected return given the following historical data?

Time Period                        Return

1                                              6%

2                                              2%

3                                              4%

Now, solve for the standard deviation using that same data. Remember, we must divide by n-1 since we are working with a sample of data.

The expected return can be solved as follows:

Reference no: EM13809753

Questions Cloud

What are the projects annul operation cash inflows : Nuff Folding Box Company, Inc. is considering purchasing a new gluing machine. The gluing machine costs $50,000 and requires installation costs of $2,500. This outlay would be partially offset by the sale of an existing gluer. What is the tax effect ..
Analyze two mutually exclusive projects-payback criterion : Your task is to analyze two mutually exclusive projects: Using the payback criterion, explain which investment should you chose? Using the discounted payback criterion, explain which investment should you chose? Using the NPV criterion, explain which..
Equipment to actually produce widgets-submit a bid to supply : You are required to submit a bid to supply 200,000,000 widgets per year to the State of Illinois for the next five years. Your company has an idle tract of real estate that cost $1,500,000 ten years ago; if your company sold the land today, it would ..
Plans expansion-what is the weighted average cost of capital : The Black Bird Company plans an expansion. The expansion is to be financed by selling $181 million in new debt and $123 million in new common stock. The before-tax required rate of return on debt is 8.30% percent and the required rate of return on eq..
What is the expected return given the historical data : What is the expected return given the following historical data? Now, solve for the standard deviation using that same data. Remember, we must divide by n-1 since we are working with a sample of data.
Determine the yield to maturity for this bond : The coupon rate and market price for the 10-year US Treasury bond are 2.50% and 96.3828 respectively. Note, the price is expressed as a percentage of par (like other bonds). If par is $1000, then this bond is selling for $963.828. Assume that this bo..
Annual salary growth rate and annual portfolio growth rate : What recommendations do you have for employees with a current profile similar to Tom’s after seeing the impact of the uncertainty in the annual salary growth rate and the annual portfolio growth rate? Discuss how the financial planning model develope..
Compute the mean profit-the minimum profit : Develop your own worksheet for the PortaCom simulation model described in Section 16.1. Compute the mean profit, the minimum profit, and the maximum profit. What is your estimate of the probability of a loss?
What is the companys cost of issuing new preferred stock : A Company’s perpetual preferred stock sells for $102.50 per share, and pays a $9.50 annual dividend. If the company were to issue a new preferred issue, a flotation cost of 4.00% would be paid to the investment bankers. What is the company's cost of ..

Reviews

Write a Review

Financial Management Questions & Answers

  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 ..

  Determine the annual percentage rate of increase for budget

The annual budget for a University Department has been increasing by the same percentage each year and is expected to continue to increase at this percentage rate annually for the foreseeable future. This year the budget is $1.65 million and two year..

  While evaluating capital budgeting projects

While evaluating capital budgeting projects, ABC Corporation has calculated their retained earnings breakpoint to be $45 million. What does this mean?

  What is the APR of this loan and What is its EAR

We Cheat U Loans offer to loan you $6,000 at 6% simple interest for a five-year period. In order to make it easier for you to pay, they take each year’s interest of $360 and add it to the $6,000 principal to get $7,800 ($6,000 + 5 x $360).

  Compare the two cases of owning the stock versus

We buy a put option of Florenthal, Lesser and associates. Its premium is $4 and the strike price is $44. The current market price is $50. If the price drops to $35, shall we exercise the put option? If not, why not, and If yes, why yes? Compare the t..

  Bank account to cover college expenses

Beginning three months from now, you want to be able to withdraw $1,800 each quarter from your bank account to cover college expenses over the next three years. If the account pays 0.40 percent interest per quarter, how much do you need to have in yo..

  A call option has a value of c 5 and a put has a value of

a call option has a value of c 5 and a put has a value of p 3.nbsp both options have an exercise price of x 20. the

  What are divas projected profits for the fiscal year ending

what are divas projected profits for the fiscal year ending september 1995?what factors affect a firms exposure to

  Obtain information about corporate bonds

Go to a financial Web site, such as finance.yahoo.com, google.com/finance, or moneycentral.msn.com. Obtain information on the yields and maturity for: U.S. treasuries, Municipal bonds, Corporate bonds

  Dividends per share payable to prefer and common

Beagle Corporation has 23,000 shares of $10 par common stock outstanding and 17,000 shares of $100 par, 4.50% cumulative, non participating preferred stock outstanding. Dividends have not been paid for the past two years. This year, a $440,000 divide..

  What would be the maintenance margin if a margin call

Assume you sold short 100 shares of common stock at $50 per share. The initial margin is 60%. What would be the maintenance margin if a margin call is made at a stock price of $60?

  Find the accumulated value of this annuity

Serena receives a fifty-year annuity due that has payments that start at $2,000 and increase by 3% per year through the twenty-fourth payment, then stay level at $4,000. Find the accumulated value of this annuity at the end of fifty years if the annu..

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