Consider an asset that provides the same return no matter what economic state occurs. What would be
Question:
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 66% (12 reviews)
Since this asset has no variation in its return it will have no standard deviation This could be sh...View the full answer
Answered By
Sagar Kumar
I am Mechanical Engineer with CGPA of 3.98 out of 4.00 from Pakistan. I went to Government Boys Degree College, Sehwan for high school studies.
I appeared in NUST Entrance Exam for admission in university and ranked #516. My mathematics are excellent and I have participated in many math competitions and also won many of them. Recently, I participated in International Youth Math Challenge and was awarded with Gold Honor. Now, I am also an ambassador at International Youth Math Challenge,
I have been teaching when I was in 9th class class year 2012. I have taught students from 6th class to university level.
5.00+
1+ Reviews
10+ Question Solved
Related Book For
Finance Applications and Theory
ISBN: 978-0077861681
3rd edition
Authors: Marcia Cornett, Troy Adair
Question Posted:
Students also viewed these Finance questions
-
Consider an asset that costs $120 today. You are going to hold it for 1 year and then sell it. Suppose that there is a 25 percent chance that it will be worth $100 in a year, a 25 percent chance that...
-
Consider an asset that costs $548,000 and can be depreciated at 20 percent per year (Class8) over its eight-year life. The asset is to be used in a five-year project; at the end of the project, the...
-
Consider an asset that costs $670,000 and is depreciated straight-line to zero over its eight-year tax life. The asset is to be used in a five-year project; at the end of the project, the asset can...
-
Identify and discuss three ways that tourism and hospitality businesses can maintain a long-term relationship with their clients
-
The bottling division of Sweet Suzy's Sugarless Cola maintains daily records of the occurrences of unacceptable cans flowing from the filling and sealing machine. The data in Colaspc lists the number...
-
The unadjusted trial balance of La Mesa Laundry at August 31, 2018, the end of the fiscal year, follows: The data needed to determine year-end adjustments are as follows: (A) Wages accrued but not...
-
A military base in the United States is examining the distribution of the amount of time that officers on the base have been in the military. The following data show the years of military service for...
-
The GASB has established a 60-day rule for the recognition of property taxes in governmental funds. On what basis can you justify such a rule for property taxes but not for other revenues? Do you...
-
The following information is available to reconcile Branch Company's book balance of cash with its bank statement cash balance as of July 31. a. On July 31, the company's Cash account has a $25,691...
-
Form an equally weighted portfolio of large and small stocks and compute the Reward-to-Risk Ratio (the slope of the Security Market Line). Annual returns in percent: Year Large Company Stocks Small...
-
Compare and contrast the assumptions that need to be made to compute a required return using CAPM and the constant growth rate model.
-
Why is expected return considered forward-looking? What are the challenges for practitioners to utilize expected return?
-
Customers arrive at Paul Harrolds Styling Shop at a rate of 3 per hour, distributed in a Poisson fashion. Paul can perform haircuts at a rate of 5 per hour, distributed exponentially. a) Find the...
-
Perhaps the most spectacular technological advance in recent history has been the development and growth of computing and the tools and applications that have come with it. Almost all of us use...
-
An economist wants to estimate mean annual income from the first year of work for college graduates who have had the profound wisdom to take a statistics course. How many such incomes must be found...
-
True Or False The national median for jury awards has steadily increased since 1990.
-
The ocean is mostly heated from the top, by light from the sun. The warmer surface water doesn't mix much with the colder deep ocean water. This lack of mixing can be ascribed to a lack of A....
-
Consider an ETF with the following trading costs and management fees: Excluding compound effects, the expected total holding-period cost for investing in the ETF over a nine-month holding period is...
-
In Chapter 4, we noted that compressibility is an important factor for fuels, and that some hydrocarbons are more compressible than others. If a fuel is not very compressible, what can we infer about...
-
What kind of financial pressures can an LBO cause?
-
a. Using parts (a), (b), and (c) of Problem 11, calculate theefficiency gap of the three congressional elections depicted. b. Comment on each of the three election results in Question 11 from the...
-
Japanese Motors exports cars and trucks to the U.S. market. On November 15, 2001, its most popular model was selling (wholesale) to U.S. dealers for $20,000.What price must Japanese Motors charge for...
-
Valley Stores, a U.S. department store chain, annually negotiates a contract with Alpine Watch Company, located in Switzerland, to purchase a large shipment of watches. On November 15, 2001, Valley...
-
Determine the percentage change in the value of the following currencies relative to the U.S. dollar between November 15, 2001 and February 20, 2004. a. Rupee b. Pound c. Yen d. Euro e. Canadian...
-
Job performance is perhaps the ultimate outcome variable in organizational behavior research. At the end of the day, bottom - line performance is critical. This activity is important because a person...
-
What are two types of challenges an attorney can make during voir dire?
-
Guns The Production Possibilities Frontier, What does a, d, e, b, c represents in the PPF? 70 40 H 300 400 Butter
Study smarter with the SolutionInn App