What is the standard deviation of these expected returns

Assignment Help Finance Basics
Reference no: EM13296358

During a normal economy, the common stock of D&F Oil is expected to return 13.2 percent. During a recession, the expected return is 6.7 percent and during a boom, the expected return is 24.5 percent. The probability of a normal economy is 74 percent while the probability of a recession is 15 percent and the probability of a boom is 11 percent. What is the standard deviation of these expected returns?

Reference no: EM13296358

Questions Cloud

Determining the amplitude of the waveform : Why should you maximize the volts/division scale on the gradecule when determining the amplitude of the waveform
Calculate the net rate at which the sphere radiates energy : A sphere that is a perfect blackbody radiator has a radius of 0.130 m, Calculate the net rate at which the sphere radiates energy
What is the equity multiplier : Harold's Hardware has total assets of $773,000 and total debt of $189,000. What is the equity multiplier?
What is the reward-to-risk ratio : The U.S. Treasury bill is yielding 5.1 percent while a stock with a beta of 1.08 is yielding 12.3 percent. What is the reward-to-risk ratio?
What is the standard deviation of these expected returns : The probability of a normal economy is 74 percent while the probability of a recession is 15 percent and the probability of a boom is 11 percent. What is the standard deviation of these expected returns?
Catchy slogan can help in promoting name-selling of product : A catchy slogan can help in promoting the name and selling of a product. You are going to launch a new product, make a catchy slogan and state the reasons for choosing that slogan.
Anaerobic organisms not seen in a routine fecal culture : Explain why anaerobic organisms are generally not the enteric pathogens seen in a routine fecal specimen. Why are these anaerobic organisms not seen in a routine fecal culture?
The general purpose of the securities act of 1933 : The general purpose of the Securities Act of 1933 is:
Regarding monopolization analysis : What is a FALSE statement regarding monopolization analysis pursuant to Section 2 of the Sherman Act?

Reviews

Write a Review

Finance Basics Questions & Answers

  External funding-flow of funds-interest rates

Discuss the process to calculate external funding needs and the importance to a business. Describe the importance of interest rates, and how risk is considered to businesses and economic activity.

  What is the estimate value of dynamite industries

what is the estimate value of Dynamite Industries stock 2 years from now?

  Will fox accept the project

Fox uses the net present value method and has a discount rate of 11.25%. Will Fox accept the project?

  Which is most appropriate for a hardware store

What is the difference between one-price and flexible-price policies? Which is most appropriate for a hardware store? Explain your reasoning in detail with examples or citations from the textbook.

  Drew financial associates

Drew Financial Associates currently pays a quarterly dividend of 50 cents per share. What is the ex-dividend date for this quarter?

  Describe the term bond valuation

Describe the term Bond valuation and what coupon rate should be set on the bond with warrants if the total package is to sell for $1,000

  What was its charge for depreciation and amortization

What was its charge for depreciation and amortization? Write out your answer completely. For example, 25 million should be entered as 25,000,000. Round your answer to the nearest dollar, if necessary.

  Question on project evaluation

ABC company purchased a machine 5 years ago at cost of $100000. The machine had an expected life of 10 years at the time of purchase, and an expected salvage value of $10,000 at the end of the 10 years. Show all workings to justify your answer

  Calculating the quarterly payment

A student lend $4000 from a credit union toward buying a car. The interest rate on such a loan is 14 percent compounded quarterly, with payments due each quarter.

  Explain the most efficient way to raise capital

Suppose you were given an opportunity to own a business of your choosing. First, briefly describe your business; then explain the most efficient way to raise capital to either start or expand your business. Provide support for your response.

  Determine correct statement

Today, you can get either 121 Canadian dollars or 1,288 Mexican pesos for 100 United State dollars. Last year, 100 United State dollars was worth 115 Canadian dollars or 1,291 Mexican pesos.

  Compute the dividends, net of capital contribution

Compute the dividends, net of capital contribution, for 2006. Compute ROCE, use average net book value in the denominator.

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