What is the reward-to-variability ratio

Assignment Help Finance Basics
Reference no: EM13262624

Asset A has an expected return of 18% and a standard deviation of 25%. The risk-free rate is 9%. What is the reward-to-variability ratio?

Reference no: EM13262624

Questions Cloud

What is the net present value for this project : The tax rate is 33 percent and the required return for the project is 15 percent. What is the net present value for this project?
Blaze of understanding scatters energy : The reason that people act strongly is that they understand dimly; the blaze of understanding scatters energy.
Do the presentation of titan internation inc : Do the presentation of Titan internation inc - only the picture on the slide, no texting on the slide
Find the focal lens of the lens be in this environment : If this lens is then immersed in water with a refractive index of 1.33, what will the focal lens of the lens be in this environment
What is the reward-to-variability ratio : Asset A has an expected return of 18% and a standard deviation of 25%. The risk-free rate is 9%. What is the reward-to-variability ratio?
What is the concept of dead peasants insurance : the company uses the tax - free death benefit to pay off the policy loan and to mack the payment to the family if one was promised and then pockets the difference.
Illuminate hooker’s discussion of integrity : Evaluate the choices faced by Steve Lewis, Peter Adario, and Eduoard Sakiz (in Badaracco’s article) from the standpoints of the generalizability, utilitarian, and virtue ethics tests. Does Badaracco’s concept of character illuminate Hooker’s discussi..
Explain the potassium-40 : This method assumes that no argon was trapped in the rock when it was formed frothe molten material. A meteorite was found to have equal amounts of 40K and 40Ar. a) Of the potassium-40 that was originally present, what fraction has decayed? b) how..
Design the circuit to produce an output voltage of 12v : Consider the voltage Consider the voltage reference circuit in Figure P9.86. Using a Zener diode with a breakdown voltage of 5.6V, design the circuit to produce an output voltage of 12V. Assume the input voltage is 15Vand the Zener diode current i..

Reviews

Write a Review

Finance Basics Questions & Answers

  Valuing bond and common stocks

XXC expects earnings per share to be $6.00 next period. The retention rate is 60% and return on equity (ROE) is 20%. The required return is 18%. Find out XXC's stock price?

  Affect of inflation on exchange rate

How does inflation affect the country's exchange rate? How is the equilibrium exchange rate determined and what factors affect it?

  Define financial markets and share experiences

Define financial markets and share experiences you have had with at least one type of financial market or institution. Discuss and explain the main functions that market or institution performs.

  Amortization expense

Dade buy a patent on January 1, 2003 for $120,000. The patent had a remaining useful life of ten years at that date. In January 2004, Dade successfully defends patent at a cost of $54,000,

  How much more money would you earn

Interest First City Bank pays 6% simple interest on its savings account balances, whereas Second City Bank pays 6% interest compounded annually. If you made a $5,000 deposit in each bank, how much more money would you earn from your Second City Bank ..

  Britain entry in exchange rate mechanism of ems

When Britain announced its entry in the exchange rate mechanism of EMS on October 5, 1990, the price of British gilts (long term government bonds) soared and sterling rose in value.

  Purpose of statement of cash flows

Prepare a response in which you answer: What is the purpose of the statement of cash flows? What information does it provide?

  Computation of intrinsic value of stock

You must determine the intrinsic value of Tsetseko Technologies' stock. Tsetseko's end-of-year free cash flow (FCF) is expected to be $17.50 million, and it is expected to increase at a constant rate of 7 percent a year thereafter.

  Differentiate systematic and non-systematic risk

Suppose that the risk free rate of interest is 3 percent and the expected rate of return on the market is 9 percent. A share of stock is selling for $55 at the beginning of the year.

  Maturity and the current market value

Calculate the present value of $1,000 zero-coupon bond with 5 years to maturity if the required annual interest rate is 6% and what relationship do you observe between yield to maturity and the current market value?

  Using expected monetary value as decision criterion

Bill Goodman has been offered the opportunity to invest $15,000 in a start-up company that intends to supply personal digital assistants to physicians in order to enable them to determine the approved medication for each HMO patient they treat.

  Differences between sole proprietorship and corporation

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

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