Question: The returns on the common stock of Maynard Cosmetic Specialties
The returns on the common stock of Maynard Cosmetic Specialties are quite cyclical. In a boom economy, the stock is expected to return 22 percent in comparison to 9 percent in a normal economy and a negative 14 percent in a recessionary period. The probability of a recession is 35 percent while the probability of a boom is 10 percent. What is the standard deviation of the returns on this stock?
Relevant QuestionsBetter Life Nursing Home, Inc. has maintained a dividend payment of $4 per share for many years. The same dollar dividend is expected to be paid in future years. If investors require a 12 percent rate of return on ...A nut wholesaler sells a mix of peanuts and cashews. He charges $2.80 per pound for peanuts and $5.30 per pound for cashews. If the mix is to sell for $3.30 per pound, how many pounds each of peanuts and cashews should be ...A single machine work center has five jobs assigned to it. They are labeled, in the order of their arrival in the shop, as jobs A, B, C, D and E. The work center may work on only one job at a time and must complete any job ...An insurance company stated that in 1987, the average yearly car insurance cost for a family in the U.S. was $1188. In the same year, a random sample of 37 families in California resulted in a mean cost of $1228 with a ...Nick, the owner of a steel company currently has five jobs to be scheduled, shown in the order in which they arrived. Show your supporting calculations in detail.a. Which dispatching rule has the best score for flow time?b. ...
Post your question