Question

In: Finance

Possible outcomes for three investment alternatives and their probabilities of occurrence are given below. Alternative 1...

Possible outcomes for three investment alternatives and their probabilities of occurrence are given below. Alternative 1 Alternative 2 Alternative 3 Outcomes Probability Outcomes Probability Outcomes Probability Failure $ 30 0.20 $ 80 0.40 $ 90 0.40 Acceptable 60 0.20 140 0.20 225 0.40 Successful 120 0.60 210 0.40 380 0.20 Rank the three alternatives in terms of least risk to most risk. (Do not round intermediate calculations. Round the final answers to 3 decimal places.) Rank Coefficient of Variation

Solutions

Expert Solution


Related Solutions

Possible outcomes for three investment alternatives and their probabilities of occurrence are given next.       Alternative 1...
Possible outcomes for three investment alternatives and their probabilities of occurrence are given next.       Alternative 1 Alternative 2 Alternative 3 Outcomes Probability Outcomes Probability Outcomes Probability Failure 40 0.20 70 0.20 75 0.40 Acceptable 80 0.20 140 0.20 255 0.40 Successful 135 0.60 205 0.60 405 0.20 Using the coefficient of variation, rank the three alternatives in terms of risk from lowest to highest. (Do not round intermediate calculations. Round your answers to 3 decimal places.)
Possible outcomes for three investment alternatives and their probabilities of occurrence are given next.       Alternative 1...
Possible outcomes for three investment alternatives and their probabilities of occurrence are given next.       Alternative 1 Alternative 2 Alternative 3 Outcomes Probability Outcomes Probability Outcomes Probability Failure 60 0.40 80 0.20 70 0.30 Acceptable 85 0.40 150 0.40 275 0.60 Successful 140 0.20 220 0.40 410 0.10 Using the coefficient of variation, rank the three alternatives in terms of risk from lowest to highest. (Do not round intermediate calculations. Round your answers to 3 decimal places.) Coefficient of Variation Rank...
Possible outcomes for three investment alternatives and their probabilities of occurrence are given next. Alternative 1...
Possible outcomes for three investment alternatives and their probabilities of occurrence are given next. Alternative 1 Alternative 2 Alternative 3 Outcomes Probability Outcomes Probability Outcomes Probability Failure 40 .20 90 .40 90 .30 Acceptable 60 .40 180 .20 280 .50 Successful 120 .40 240 .40 415 .20 Using the coefficient of variation, rank the three alternatives in terms of risk from lowest to highest. (Do not round intermediate calculations. Round your answers to 3 decimal places.)
Possible outcomes for three investment alternatives and their probabilities of occurrence are given next.           Alternative...
Possible outcomes for three investment alternatives and their probabilities of occurrence are given next.           Alternative 1 Alternative 2 Alternative 3 Outcomes Probability Outcomes Probability Outcomes Probability Failure 60 .20 70 .20 80 .20 Acceptable 60 .40 220 .40 250 .60 Successful 130 .40 240 .40 415 .20        Using the coefficient of variation, rank the three alternatives in terms of risk from lowest to highest. (Do not round intermediate calculations. Round your answers to 3 decimal places.)        
Q1) Possible outcomes for three investment alternatives and their probabilities of occurrence are given next.       Alternative...
Q1) Possible outcomes for three investment alternatives and their probabilities of occurrence are given next.       Alternative 1 Alternative 2 Alternative 3 Outcomes Probability Outcomes Probability Outcomes Probability Failure 50 0.40 70 0.20 85 0.40 Acceptable 80 0.20 130 0.40 325 0.40 Successful 135 0.40 265 0.40 410 0.20 Using the coefficient of variation, rank the three alternatives in terms of risk from lowest to highest. (Do not round intermediate calculations. Round your answers to 3 decimal places.) Q2) Highland Mining...
23) Possible outcomes for three investment alternatives and their probabilities of occurrence are given next.       Alternative...
23) Possible outcomes for three investment alternatives and their probabilities of occurrence are given next.       Alternative 1 Alternative 2 Alternative 3 Outcomes Probability Outcomes Probability Outcomes Probability Failure 80 0.40 90 0.20 100 0.30 Acceptable 80 0.20 185 0.20 220 0.50 Successful 155 0.40 220 0.60 375 0.20 Using the coefficient of variation, rank the three alternatives in terms of risk from lowest to highest. (Do not round intermediate calculations. Round your answers to 3 decimal places.)
A. Suppose you have three possible outcomes following the occurrence of an event. These are {no...
A. Suppose you have three possible outcomes following the occurrence of an event. These are {no harm, some harm, a lot of harm}. Are elements of this set of outcomes mutually exclusive? Statistically independent? Can they be both? Why or why not? B. Suppose you have three dimensions of harm of concern - confidentiality, integrity, and availability. Following the occurrence of an event, you may or may not suffer a breach of confidentiality, integrity or availability. Whether you suffer loss...
Given the returns and probabilities for the three possible states listed below, calculate the covariance between...
Given the returns and probabilities for the three possible states listed below, calculate the covariance between the returns of Stock A and Stock B. For convenience, assume that the expected returns of Stock A and Stock B are 11.75 percent and 18 percent, respectively. Probability Return on Stock A Return on Stock B Good 0.35 0.30 0.50 OK 0.50 0.10 0.10 Poor 0.15 −0.25 −0.30
Given the returns and probabilities for the three possible states listed below, calculate the covariance between...
Given the returns and probabilities for the three possible states listed below, calculate the covariance between the returns of Stock A and Stock B. For convenience, assume that the expected returns of Stock A and Stock B are 10.00 percent and 16.00 percent, respectively. (Round answer to 4 decimal places, e.g. 0.0768.) Probability Return on Stock A Return on Stock B Good 0.35 0.30 0.50 OK 0.45 0.10 0.10 Poor 0.20 -0.25 -0.30 Covariance
Data for two mutually exclusive alternatives are given below. Alternative A Alternative B Initial Cost $4,000...
Data for two mutually exclusive alternatives are given below. Alternative A Alternative B Initial Cost $4,000 $3,000 Annual Benefits (beginning at the end of year 1) $1,000 $600 Annual Costs (beginning at the end of year 1) $300 $100 Salvage Value $500 $0 Useful Life (years) 5 10 Compute the net present worth for each alternative and choose the better alternative. MARR = 6% A. None can be chosen B. Alternative A C. Alternative B D. Any alternative can be...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT