Question
In: Finance
carter inc is evaluating a security giving the information in the pop-up window probability return .15...
carter inc is evaluating a security giving the information in the
pop-up window
probability return
.15 6%
.50 8%
.20 12%
.15. 14%
calculate the investment expected return and it's standard
deviation
The investment expected rate of return is
The investment standard deviation is
Solutions
jeff jeffy answered 1 year agoRelated Solutions
A text editor window should pop up with the following source code (except with your actual name):
A text editor window should pop up with the following source code (except with your actual name):
csci1011.lab8;/**** @author Your Name*/public class Account {}
Implement the Account class.
Add a public enum called ACCOUNT_TYPE with two values CHECKING, SAVING
Add the following private instance variables to the Account class:
An instance variable called aType of type Enum ACCOUNT_TYPE.
An instance variable called accountOwner of type String.
An instance variable called interestRate of type double.
An instance variable called balance...
A Security Pacific Bank branch has opened up a drive through teller window. There is a...
A Security Pacific Bank branch has opened up a drive through teller
window. There is a single service lane, and customers in their cars
line up in a single line to complete bank transactions. The average
time for each transaction to go through the teller window is
exactly four minutes. Throughout the day, customers arrive
independently and largely at random at an average rate of ten
customers per hour.
1) What is the probability that there are exactly 3 cars...
The number of customer arrivals at a bank's drive-up window in a 15-minute period is Poisson...
The number of customer arrivals at a bank's drive-up window in a
15-minute period is Poisson distributed with a mean of seven
customer arrivals per 15-minute period. Define the random variable
x to be the time (in minutes) between successive customer arrivals
at the bank's drive-up window. (a) Write the formula for the
exponential probability curve of x. (c) Find the probability that
the time between arrivals is (Round your answers to 4 decimal
places.) 1.Between one and two minutes....
COMMON STOCK A COMMON STOCK B PROBABILITY RETURN PROBABILITY RETURN 0.25 10% 0.20 −5% 0.50 15%...
COMMON STOCK A
COMMON STOCK B
PROBABILITY
RETURN
PROBABILITY
RETURN
0.25
10%
0.20
−5%
0.50
15%
0.30
6%
0.25
18%
0.30
16%
0.20
22%
expected
rate of return and
risk)
Summerville Inc. is considering an investment in one of two
common stocks. Given the information in the popup window:
, which investment is better, based on the risk (as measured
by the standard deviation) and return of each?
a. The expected rate of return for Stock A
is
%.
(Round...
The current market price of a security is $50, the security's expected return is 15%, the...
The current market price of a security is $50, the security's
expected return is 15%, the riskless rate of interest is 2%, and
the market risk premium is 8%.
What is the beta of the security?
What is the covariance of returns on this security with the
returns on the market portfolio?
What will be the security's price, if the covariance of its
rate of return with the market portfolio doubles?
How is your result consistent with our understanding that...
The current market price of a security is $50, the security's expected return is 15%, the...
The current market price of a security is $50, the security's
expected return is 15%, the riskless rate of interest is 2%, and
the market risk premium is 8%.
What is the beta of the security?
What is the covariance of returns on this security with the
returns on the market portfolio?
What will be the security's price, if the covariance of its
rate of return with the market portfolio doubles?
How is your result consistent with our understanding that...
Given the following information: Expected return on Stock A .15 (15%) Standard deviation of return 0.3...
Given the following
information:
Expected return on Stock A
.15 (15%)
Standard deviation of return
0.3
Expected return on Stock B
.18 (18%)
Standard deviation of return
0.4
Correlation coefficient of the returns
on Stock A and Stock B
0.75
a. What are the expected returns and
standard deviations of the following
portfolios?
1. 100 percent of funds invested in
Stock A
2. 100 percent of funds invested in Stock B
3. 50 percent of funds invested in each stock?...
Given the following information: Expected return on Stock A .15 (15%) Standard deviation of return 0.3...
Given the following information:
Expected return on Stock A .15 (15%)
Standard deviation of return 0.3
Expected return on Stock B .18 (18%)
Standard deviation of return 0.4
Correlation coefficient of the returns on Stock A and Stock B
0.75
a. What are the expected returns and standard deviations of the
following portfolios?
1. 100 percent of funds invested in Stock A
2. 100 percent of funds invested in Stock B
3. 50 percent of funds invested in each stock?...
Given the following information, please estimate the expected return and risk for the portfolio Security Security...
Given the following information, please estimate the expected
return and risk for the portfolio
Security
Security 1
Security 2
Security 3
E(R)
0.015
0.02
0.05
Weight
33%
33%
34%
Security 1
Security 2
Security 3
Security 1
Var=0.05
Corr=0.5
Corr=0.3
Security 2
Var=0.06
Corr=0.6
Security 3
Var=0.07
State of the world Probability Security Returns X Security Returns Market Boom .30 .25 .15 Normal...
State of
the world
Probability
Security Returns X
Security Returns Market
Boom
.30
.25
.15
Normal
.40
.07
.10
Recession
.30
.03
.05
E(Rx).112
E(RMkt).10
=.008436
=.0015
Is this distribution symmetrical? Calculate the covariance.
Calculate the variance of the portfolio made up of 30% X and 70% of
the Market. Find the Beta for the firm. Find the correlation
coefficient. What does the beta measure?
Assuming the beta calculated above, and assuming E(RM) = 12%;
Rf= 8% Find the price...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Problem) Fraud Scheme - Purchasing Agent: A purchasing agent for a large hardware retailer has sole...
- Ivanhoe Corporation has collected the following information after its first year of sales. Sales were $1,600,000...
- There are two major approaches to corporate valuation: a) using comparable firms (via multiples, i.e. ratios)...
- A 4-year annuity of eight $9,800 semiannual payments will begin 7 years from now, with the...
- Consider the following relation schema about project meetings: PMG(projID, title, type, manager, jobID, start-date, end-date, contractor,...
- Question 3 a) A coil consist of 2000 turns of copper wire having a cross sectional...
- A 66.5-kg person throws a 0.0500-kg snowball forward with a ground speed of 33.5 m/s. A...
ADVERTISEMENT