Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Standard Deviation
An investment must be evaluated on two dimensions - rate of return and risk. An investor cannot enjoy a high return without any exposure to risk. The higher the return, the higher is the risk involved and the lower the exposure to risk, the lower would be the return. Risk is defined as the chance of injury, damage or loss. Risk in investments is the chance of the actual returns realized being much lower than the expected returns.
The risk in an investment is normally measured by the variance or standard deviation in the returns from the mean or expected return. The idea is, the higher the value of dispersion (that is, variance or standard deviation), the higher is the risk. If all possible or actual returns lie close to the mean return, then the total risk in investment is less and the investor has an assurance that at least the mean rate of return will be earned on the investment.
The variance and standard deviation of returns from the share of Godavari Petrochemicals Limited may be calculated as under:
Rates of Return
Probability of Occurrence
Deviations from Expected Rate of Return
Squares of Deviation
Probability x Squares of Devation
(Xi)
(Pi)
30%
0.30
10.2
104.04
31.212
18%
0.50
-1.8
3.24
1.620
9%
0.20
-10.8
116.64
23.328
Total
56.160
Discuss the process of Maximise Profits Let's first look at profit maximisation. Profit (also known as net income or earnings) canbe defined as the amount a business earns af
You have $20 to spend on high quality pens and low quality pens. High quality pens cost $5 each and low quality pens cost $2 each. (a) Suppose that you will spend your entire
Earning per share Earnings per share (EPS) are computed as profit attributable to equity divided by the number of shares in issue and ranking for dividends. EPS therefore repr
Bridge Financing A type of short-term financing used to cover an organization short-term want; a loan that is expected to be repaid relatively fast.
Q. Board of Directors Board of Directors - Individuals responsible for overseeing the affairs of an entity including the election of its officers. Board of a CORPORATION which
Evaluate the extent to which the Balanced Scorecard: The Balanced Scorecard has been described as an effective measurement system which enables managers of an organisation to
What is Performance ratios ROCE Return oncapital employed (ROCE)= (Profit before interest and tax (PBIT) / Capital employed) * 100% ROCE measures profitability and illu
evaluate the importance of leverage in financial management of a small scale company
Ashok is to receive an amount of Rs. 15,00,000 from his relative after 3 years. He wants to buy a house for which he wants the money to be paid now. His relative had already invest
Illustration Discount bond (5 yr. bond with 10% coupon) (expected rate yield at 12%) Premium bo
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!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd