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.

Expert Solution

jeff jeffy answered 2 years ago

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?

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 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.

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%...

Stock has a 25% chance of producing a 36% return, a 50% chance of producing a...

Stock has a 25% chance of producing a 36% return, a 50% chance of producing a 12% return, and a 25% chance of producing a -18% return. What is the firm's standard deviation? Do not round your intermediate calculations.

Dothan Inc.'s stock has a 25% chance of producing a 16% return, a 50% chance of...

Dothan Inc.'s stock has a 25% chance of producing a 16% return, a 50% chance of producing a 12% return, and a 25% chance of producing a -18% return. What is the firm's expected rate of return? Do not round your intermediate calculations. a. 4.51% b. 4.29% c. 5.50% d. 4.68% e. 6.38%

Taggart Inc.'s stock has a 50% chance of producing a 25% return, a 30% chance of...

Taggart Inc.'s stock has a 50% chance of producing a 25% return, a 30% chance of producing a 10% return, and a 20% chance of producing a −28% return. a. What is their expected rate of return? b. What is their standard deviation of returns? c. What is their coefficient of variation?

Your required rate of return is 20% and your income tax is 0%.

Your required rate of return is 20% and your income tax is 0%. You have job offers from two different companies, say A and B. Company A offers a 5-year contract, with a signing bonus of $100 and an annual wage of $80 in the first year, which will grow 10% a year over the duration of the contract. Company B offers a 5-year contract, with a constant annual wage and a severance pay of $100 at the termination of...

Question 26 Your firm has an expected stock return of 10%, an expected return on its...

Question 26 Your firm has an expected stock return of 10%, an expected return on its preferred stock of 4%, and the yield on its bonds of 2%. The market value of common stock outstanding is $20 million, preferred stock is $2 million, and the market value of the firm's bonds is $3 million. The tax rate is 25%. What is the WACC? Question 27 A share of preferred stock with an annual dividend of $5 has an expected return...

) Two investment advisers are comparing performance. One averaged a 20% rate of return and the...

) Two investment advisers are comparing performance. One averaged a 20% rate of return and the other an 18% rate of return. However, the beta of the first investor was 1.6, whereas that of the second was 1. i) Can you tell which investor was a better selector of individual stocks (aside from the issue of general movements in the market)? ii) If the Treasury bill (T-bill) rate was 7% and the market return during the period was 12%, which...

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