Calculate the expected return and standard deviation for an investment with the following probability distribution. Return (%)

Fantastic news! We've Found the answer you've been seeking!

Question:

Calculate the expected return and standard deviation for an investment with the following probability distribution.

Return (%)	Probability (%)

-10	20
5	20
10	20
17	30
26	10

Expected return

Standard deviation

Related Book For answer-question

Introduction to Corporate Finance What Companies Do

ISBN: 978-1111222284

3rd edition

Authors: John Graham, Scott Smart

See More Books

Posted Date: Sep 06, 2018 03:12 AM

See More Questions

The table below shows the expected return and standard deviation for two stocks. Is the pattern shown in the table possible? Stock Beta Std. Dev 1 1.5 22% 2 0.9 3590
The expected return and standard deviation of returns of General Mills common stock over the next year are estimated to be 20 percent and 12 percent, respectively. Assume that the returns are...
The (annual) expected return and standard deviation of returns for 2 assets are as follows: Asset A : E[r] 10% , SD[r] 30% Asset B : E[r] 20% , SD[r] 50% The correlation between the returns is 0.15...
Calculate the anion gap for a 58 year old insulin dependent diabetic woman who is admitted to the emergency room in a comatose state Na-135mmol/L K= 3.5 mmol/L CI-102 mmol/L HCO3-= 15mmol/L. Include...
Jeters Company reports the following for the month of June. Instructions (a) Compute the cost of the ending inventory and the cost of goods sold under (1) FIFO, (2) LIFO, and (3) average-cost. (Round...
Identify a major U.S. restaurant chain that has recently received poor quality ratings. Who are its customers, and what are the basic causes that led to declining quality?
Discuss the importance of the patients responsibility to communicate to the staff any symptoms he or she is experiencing.
British Quince comes across an average-risk investment project that offers a rate of return of 9.5%. This is less than the company's normal rate of return, but one of Quince's directors notes that...
Consider a coupon bond paying a 8% coupon rate annually, with a face value of HUF10,000, maturing in 6 years. Suppose that the appropriate discount rate is 5%. What is the current value of the bond?
The University of the Bahamas has two operating departments: School of Business and School of Education. Each of the operating departments uses the services of the company's two support departments:...
You are the resource manager for the Times Are a Changein music company. A new project is about to begin (a new music app for smart phones) and the Project Sponsor, Elon Gates, comes to you with a...
What is true of Agile PM?
Identify a specific tool or technique from those identified in Chapter 19, and discuss how the tool is used in your current or former place of employment.
What type of cx survey is strategic in nature?
What is leadership and what are some examples of applying the Kellerman model?
How does the novelist intricately sculpt the protagonist's psyche through a nuanced portrayal of internal conflict, utilizing subtle gestures and psychological depth to render a character of profound...
Use the balance sheet of a bank below to answer the following. The duration of asset is 2.5 years, the duration of liabilities 1 year. Liabilities Assets Reserves 10 m T-bills 30 m Money Market...
When the Department of Homeland Security created a color-coded system to prepare government officials and the public against terrorist attacks, what did it do right and what did it do wrong?
What method of collecting data used by the Structuralists is still used today? O Measuring reaction time. Introspection. O Counting bar-presses. O Measuring saliva.
A certain investment requires an initial outlay of $12 million and subsequently produces annual cash inflows of $1.4 million in perpetuity. A firm evaluating this investment uses a discount rate of...
Empirically, what are the wealth effects of corporate control activities? Who wins and who loses in corporate control contests? What explanations or theories are offered for the differences in...
Find the rates of return required to do the following: a. Double an investment in 4 years b. Double an investment in 10 years c. Triple an investment in 4 years d. Triple an investment in 10 years
Which of the following function(s) is/are carried out by piRITS or piRISC? a. Inhibits transcription of TEs b. Causes the degradation of TE RNA c. Causes chromosome breakage d. Both a and b are...
Scientists propose that the first macromolecules in protobionts were a. DNA molecules. b. RNA molecules. c. proteins. d. all of the above.
In the CRISPR-Cas system, what does tracrRNA bind to? a. crRNA and Cas1 protein b. crRNA and Cas2 protein c. crRNA and Cas9 protein d. Cas1 and Cas2 proteins

Calculate the expected return and standard deviation for an investment with the following probability distribution. Return (%)

Question:

Expert Answer:

Given Return Probability Expected Return Given Return x Probability Deviation 2 Deviati... View the full answer

Introduction to Corporate Finance What Companies Do

Students also viewed these finance questions