ere analyzing a stock and came up with the following probability distribution of the stock returns. What is the coefficient of variation on the company's stock State of the Economy Probability of State Occurring Stock's Expected Return Boom 25.00% 19.90% Normal 51.00% 17.45% Recession 24.00%
Q: You own a house that you rent for $1,200 a month. The maintenance expenses on the house average $200…
A: The maintenance expenses are the expenses or costs incurred on assets to keep assets safe.…
Q: Nielson Motors has no debt, and maintains a policy of holding $92 million in excess cash reserves,…
A: Cash reserves are those reserves which are maintained for cash. Cost of maintaining reserves will be…
Q: Give typing answer with explanation and conclusion
A: Determine the depreciation by using the sum of year digit method(SYD)SYD = n ( n + 1)/2= 5(5 +…
Q: The ending balance on Scotty's credit card last month was $853.00. He only paid $45.00, so a finance…
A: Credit cards refer to debt instruments that are used by individuals to access funds and repay them…
Q: (Expected rate of return and risk) Syntex, Inc. is considering an investment in one of two common…
A: Probability of state of EconomyStock A's Return0.210%0.617%0.220%Probability of state of…
Q: How much would you need to deposit in an account now in order to have $20,000 in the account in 4…
A: Interest rate = 5%No. of years = 4FV = 20000
Q: You sold a blue chip call option on Johnson and Johnson. Stock of JJ moves in the relationship with…
A: A calculation method called the Black-Scholes model is used to determine the hypothetical price of…
Q: For 2021, Gourmet Kitchen Products reported $22 million of sales and $18 million of operating costs…
A: Economic value added (EVA) is a financial performance measure that reflects the return generated by…
Q: A $2,500 loan is offered for 27 months at 5.2% compounded annually. maturity value? Refer to the…
A: Loan = $2500Interest rate = 5.2% compounded annuallyPeriod = 27 months or 2.25 year
Q: From the perspective of U.S. investors with $1,000,000, calculate the yield if he were to perform an…
A: First, we need to check what the intrinsic forward price should be. The quoted 1 year forward rate…
Q: . Origination Fees and Discount Points without Prepayment lender is offering a 30-year, monthly…
A: Yield to Lender: The yield to a lender refers to the return the lender receives on their investment,…
Q: How much interest will be earned if $5,000.00 is invested for 3 years at 10% compounded semi-annual?…
A: Future value is computed by following formula-FV = A × (1+r)nwhere,FV = Future value A = Amount…
Q: In 2022, 3M Co. had the total sales of $34,229 million, costs of $19.232 million, and net income of…
A: Common size income statement.A common size income statement is a income statement where each line…
Q: Your uncle is about to retire, and he wants to buy an annuity that will provide him with $6,800 of…
A: Payment = p = $6800Time = t = 14 yearsInterest rate = r = 5.25%
Q: What is the present value of a perpetuity of $8,447 per year given an interest rate of 8.2%,…
A: A perpetuity is an annuity stream of cash flows that continues forever.
Q: Suppose you have a project that has a 0.4 chance of tripling your investment in a year and a 0.6…
A: Standard deviation is computed by following formula-Standard deviation =
Q: Peter won a lottery and must decide among the following options: a. $260 at the beginning of every…
A: Present value represents the current value of the future stream of cash flow of investment.
Q: Wendy has $23,000.00 invested in a bank that pays 6.75% annually. How long will it take for her…
A: Present Value = pv = $23,000Interest rate = r = 6.75%
Q: When both borrowing and lending at the risk-free rate are allowed, there is a unique fund F of risky…
A: It is a portfolio that has minimum risk (standard deviation) and maximum return.
Q: Multiple Choice it determines the timing of when the payment is made. the record date occurs before…
A: Ex dividend date is the value of stock without a dividend that means stocks purchased after that…
Q: One month from now, Kelly will make her first monthly contribution of $250 to a Tax-Free…
A: Future value = $55,000Interest rate = 7% compounded annuallyMonthly contributions = $250
Q: 3. An eligible dealer purchased 182 days P1,000,000 treasury bills at 12%, after 5 days, he sold the…
A: The given details related to the purchase are:Purchase price of T-bill: P1,000,000YTM at purchase:…
Q: You make the following monthly payments. Your total net income (net of taxes) is $3,000. Calculate…
A: Rent$600Car Payment$253Credit card payment$30Student loan payment$300Net income$3,000Required:Debt…
Q: Balance Sheet Cash Inventory Fixed assets Total assets $50 Accounts payable $150 Notes payable $600…
A: Total external funding needed is calculated as shown below.
Q: (Click on the following icon in order to copy its contents into a spreadsheet.) Project M Project N…
A: IRR is the discount rate at which the net present value of the project is equal to zero. MIRR is the…
Q: What is the sales tax on a jacket priced at $425 if the sales tax rate is 6% ?
A: Sales tax is that amount which is paid by the seller to government on his sales. It is charge on…
Q: If you invest $600 today at a rate of 14%, how much will you have in the account after 15 years?…
A: Present Value = pv = $600Interest rate = r = 14%Time = t = 15 years
Q: Five years ago, you decided to purchase the stock of Straka Golf Gear. This stock has had returns of…
A: Standard deviation is a measure of deviation from mean and is the measure of risk of the return of…
Q: discount rate for the wine section for this project is $520,000 for the next six years. The…
A: MIRR is modified internal rate of return. MIRR is a method used to evaluate the profitability of the…
Q: You have the following ratios for a firm you're analyzing: Working capital / total assets = 0.7…
A: Working capital / total assets = 0.7Retained earnings / total assets = 0.3EBIT / total assets =…
Q: Cuba Corp. provides the following information for 2020: Preferred shares, 8%, par value $100,…
A: Shareholder's equity is the residual interest in a company's assets after all its liabilities have…
Q: What is the topic to which the UK's Green Book supplementary guidance alerts the capital budgeting…
A: The UK's Green Book is a comprehensive guide that provides guidance on the appraisal and evaluation…
Q: The YTM on a bond is the interest rate you earn on your investment if interest rates don't change.…
A: A bond is a kind of debt security issued by the government and private companies to the public for…
Q: All parties involved in a swap will benefit from the creation of a swap arrangement. a. True O b.…
A: A swap arrangement refers to an agreement between two parties to exchange specified cash flows at…
Q: Lucy and Fred want to begin saving for their baby's college education. They estimate that they will…
A: Variable in the question:DescriptionDataFV ($)150000N (years)18Rate6%Required: Amount to be…
Q: Which of the following is true? Discounted Payback Period is by definition longer than the…
A: The longer it takes to recover the cost of capital investment, the longer it will take for the…
Q: QUESTION 4 (a) XYZ Ltd is analysing the possible acquisition of ABC Group. The current market value…
A: According to bartleby guidelines , if question involves multiple sub parts , then 1st sub 3 parts…
Q: 6. Assuming you have USD20,000. Calculate a possible arbitrage profit. Quoted Bid Price 1.4900…
A: Arbitrage is risk free profit that exists in the market for short period and can be earned by buying…
Q: (Related to Checkpoint 9.1) (Floating-rate loans) The Bensington Glass Company entered into a loan…
A: As per Q&A guidelines Honor code violation if multiple questions are asked at once, then the…
Q: The USDJPY spot price is 115.018 and the one month forward is 115.046. A one month expiration…
A: Financial derivatives known as call options and put options provide the holder the right, but not…
Q: Edward has invented and patented a unique machine that will allow farmers to increase the yield on…
A: NPV stands for Net Present Value, and it is a financial metric used to determine the profitability…
Q: You want to buy a used car but don't have enough money to purchase it outright. Your parents suggest…
A: There are many ways to get a loan for a car and we can choose the best loan using the period and…
Q: Give typing answer with explanation and conclusion A 20-year maturity bond with par value of $1,000…
A: Bond yield refers to the return an investor expects from the bond per year till the…
Q: Compute the NPV statistic for Project U if the appropriate cost of capital is 11 percent. Note:…
A: Net present value or NPV is excess of present value of cash inflows over present value of cash…
Q: You have a portfolio with a standard deviation of 25% and an expected return of 17%. You are…
A: Standard deviation refers to the measurement of the dispersion of data of stock in respect to its…
Q: If you have reconciled an account before, you need all of this information except _____ to reconcile…
A: Meaning of account reconciliation:It is a process where two sets of records are compared to check…
Q: Blaze Scooters is considering expanding into a new college town and has the following operating…
A: After tax cash flow is determined by Deducting operating expenses, depreciation and taxes from the…
Q: Scenario Analysis (LO2) Whitewater Transmissions Inc. has the following estimates for its new gear…
A: Price per unit = $1700Variable cost per unit = $480Fixed cost = $4.1 millionQuantity = 95,000 units
Q: arclays Bank of London has offered the following exchange rate quotes: ¥195.00/£ and Korean won…
A: In international business you need to convert into another currency sometimes it may happen that you…
Q: UTCM's Knowledge and Communication Services Centre (KCSC) is considering two proposals to overhaul…
A: Given two proposals, cash flows and interest rate can be evaluated for the best return by using the…
You were analyzing a stock and came up with the following probability distribution of the stock returns. What is the coefficient of variation on the company's stock
| State of the Economy |
Probability of State Occurring
|
Stock's Expected Return
|
| Boom |
25.00%
|
19.90%
|
| Normal |
51.00%
|
17.45%
|
| Recession |
24.00%
|
8.10%
|
Step by step
Solved in 3 steps with 4 images
- What is the standard deviation of the returns on a stock given the following information? Could you please show the work? State of Economy Probability of state of Economy Rate of return if state occurs Boom 0.3000 0.1500 Normal 0.6500 0.1200 Recession 0.0500 0.0600 Average 0.3333 0.1100What is the standard deviation of the returns on a stock given the following information? State of Economy Probability of State of Economy Rate of Return if State Occurs Boom .08 .171 Normal .70 .076 Recession .22 .017You are comparing Stock A to Stock B. Given the following information, what is the difference in the expected returns of these two securities? State of Economy Probability of State of Economy Rate of Return if State Occurs Stock A Stock B Normal .75 .13 .16 Recession .25 −.05 −.21
- You are analyzing a stock that has the following returns given the various states of economy. State of Economy Probability Return Recession 0.12 -7.20 Normal 0.68 6.80 Boom 0.2 15.40 What is the expected return on this stock?Suppose you have predicted the following returns for stocks C (Your Company) and T (Your Competitor) in three possible states of nature. What are the expected returns? State Probability C T Boom 0.2 0.13 0.30 Normal 0.5 0.12 0.17 Recession 0.3 0.04 0.02You were analyzing a stock and came up with the following probability distribution of the stock returns. What is the coefficient of variation on the company's stock?Round your answer to two decimal places. For example, if your answer is $345.6671 round as 345.67 and if your answer is .05718 or 5.7182% round as 5.72. State of the Economy Probability of State Occurring Stock's Expected Return Boom 20.00% 21.00% Normal 46.00% 14.60% Recession 34.00% 8.45%
- You were analyzing a stock and came up with the following probability distribution of the stock returns. What is the coefficient of variation on the company's stock?Round your answer to two decimal places. For example, if your answer is $345.6671 round as 345.67 and if your answer is .05718 or 5.7182% round as 5.72. State of the Economy Probability of State Occurring Stock's Expected Return Boom 25.00% 24.15% Normal 46.00% 17.40% Recession 29.00% 6.20% Group of answer choicesYou've estimated the following expected returns for a stock, depending on the strength of the economy: State (s) Probability Expected return Recession 0.1 -0.05 Normal 0.5 0.06 Expansion 0.4 0.11 What is the expected return for the stock? What is the standard deviation of returns for the stock?Consider the following information: State of Economy Probability of State of Economy Rate of Return if State Occurs Stock A Stock B Recession 0.30 0.05-0.15 Normal 0.55 0.15 0.15 Boom 0.15 0.20 0.35 Calculate the expected return for the two stocks.
- Consider information given in the table below and answers the question asked thereafter: State Probability return on stock A Return on stock B A 0.15 10% 9% B 0.15 6% 15% C 0.10 20% 10% D 0.18 5% -8% E 0.12 -10% 20% F 0.30 8% 5% i. Calculate expected return on each stock? On the basis of this measure, which stockyou will choose?ii. Calculate standard deviation of the returns on each stock? On the basis of thismeasure, which stock you will choose?iii. Calculate coefficient of variance of the returns on each stock? On the basis of thismeasure, which stock you will choose?You were analyzing a stock and came up with the following probability distribution of the stock returns. What is the coefficient of variation on the company's stock?Round your answer to two decimal places. For example, if your answer is $345.6671 round as 345.67 and if your answer is .05718 or 5.7182% round as 5.72. State of the Economy Probability of State Occurring Stock's Expected Return Boom 30.00% 20.60% Normal 51.00% 15.65% Recession 19.00% 7.95% A. 0.2753 B. 0.1927 C. 0.3166 D. 0.3304 E. 0.24781. The distribution of rates of return on XYZ stock is as follows Probability of State Occurring State of XYZ Stock Economy Return (%) Depression 0. 10 -4.5% Recession 0.20 4.4% Normal 0.50 12.0% Вoom 0.20 20.7% а. What is the expected return for the stock? b. What is the standard deviation of returns for the stock?