Question
In: Finance
Your investment has a 15% chance of earning a 35% rate of return, a 55% chance...
Your investment has a 15% chance of earning a 35% rate of return, a 55% chance of earning a 15% rate of return, and a 30% chance of losing 7%. Your expected return on this investment is %
Please enter your answer with TWO decimal points.
Solutions
jeff jeffy answered 3 years agoRelated Solutions
Your investment has a 30% chance of earning a 10% rate of return, a 40% chance of earning a 23% rate of return and a 30% chance of earning -7%. What is the standard deviation on this investment?
Your investment has a 30% chance of earning a 10% rate of
return, a 40% chance of earning a 23% rate of return and a 30%
chance of earning -7%. What is the standard deviation on this
investment? (Put your answers in decimal points instead of
percentage)You calculated that the average return of your portfolio is 7%
and the standard deviation is 17%, what is the value at risk (VaR)
at 5% for your portfolio?
Your investment has a 20% chance of earning a 26% rate of return, a 50% chance...
Your investment has a 20% chance of earning a 26% rate of
return, a 50% chance of earning a 15% rate of return and a 30%
chance of losing 9%. What is your expected return on this
investment?
Enter answer in percents, accurate to two decimal places.
8. Your investment has a 20% chance of earning a 25% rate of return, a 50%...
8. Your investment has a 20% chance of earning a 25% rate of
return, a 50% chance of earning a 12% rate of return and a 30%
chance of losing 10%. What is your expected return on this
investment? What is the standard deviation? What is the coefficient
of variation?
Scenario Modeler’s prospective stock has a 15% chance of producing a 65% return, a 25% chance...
Scenario Modeler’s prospective stock has a 15% chance of
producing a 65% return, a 25% chance of producing a 22% return, a
40% chance of producing a 7% return, and a 20% chance of producing
a –24% return. What is the firm’s coefficient of variation of
return? Enter your answer rounded to two decimal places. For
example, if your answer is 12.345 then enter as 12.35 in the answer
box.
Scenario Modeler’s prospective stock has a 15% chance of producing a 65% return, a 25% chance...
Scenario Modeler’s prospective stock has a 15% chance of
producing a 65% return, a 25% chance of producing a 22% return, a
40% chance of producing a 9% return, and a 20% chance of producing
a –24% return. What is the firm’s coefficient of variation of
return?
Deep Value, Inc.’s annual stock returns for the last ten years
are: –5%, 15%, 11%, 18%, –8%, 9%, 16%, –3%, 3%, and 35%. The Market
Index’s annual returns for the same ten years...
1. A firm's stock has 50% chance of a 13% rate of return and a 50% chance...
1.
A firm's stock has 50% chance of a 13% rate of return and
a 50% chance of a 20% rate of return. What is the
standard deviation of return for this stock?
Answer as a percent return to the
nearest hundredth of a percent as in xx.xx without entering a
percent symbol.
2.
A firm's stock has 50% chance of a 35% rate of return. a 30%
chance of a 18% rate of return. and a 20% chance of a -24%...
An investment club has set a goal of earning 15% on the money they invest in...
An investment club has set a goal of earning 15% on the money
they invest in stocks. The members are considering purchasing three
possible stocks, with their cost per share (in dollars) and their
projected growth per share (in dollars) summarized in the table.
(Let x = computer shares, y = utility shares, and z = retail
shares.)
Stocks
Computer (x) Utility (y) Retail (z)
Cost/share 30 44 26
Growth/share 6.00 6.00
2.40
(a) If they have $392,000 to invest,...
A risk-free investment of $5000 will return 3%. A risky $5000 investment has a 23% chance...
A risk-free investment of $5000 will return 3%. A risky $5000
investment has a 23% chance of defaulting and returning only $3500.
How much must the risky investment promise to return?
14.8%
13.0%
11.5%
12.9%
What is the WACC for a firm using 55% equity with a required return of 35%
What is the WACC for a firm using 55% equity with a required
return of 35%, 15% debt with a required return of 8%, 10% preferred
stock with a required return of 10%, and a tax rate of 35%?11.07%15.72%21.03%10.72%
MPI Incorporated has $4 billion in assets, and its tax rate is 35%. Its basic earning...
MPI Incorporated has $4 billion in assets, and its tax rate is
35%. Its basic earning power (BEP) ratio is 9%, and its return on
assets (ROA) is 5%. The data has been collected in the Microsoft
Excel Online file below. Open the spreadsheet and perform the
required analysis to answer the question below.
What is MPI's times-interest-earned (TIE) ratio? Round your
answer to two decimal places.
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