How much a equity does a company with project with mean return of 5% of assets per year and the standard deviation of 5% of assets per year currently need to have in order to be 95% sure that its equity will not fall below 8% of its assets at the end of two years.

Answer rating: 100% (QA)

To calculate the equity needed for a company to be 95 sure that its equity will not fall below 8 of ... View the full answer