Suppose a company has the probability distribution for annual returns described as a 10% chance of a

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

Question:

Suppose a company has the probability distribution for annual returns described as a 10% chance of a return of -0.142, a 50% chance of a return of 0.063, a 30% chance of a return of 0.096, and a 10% chance of a return of 0.192.

What would the standard deviation be for this company?

Related Book For answer-question

Corporate Finance A Focused Approach

ISBN: 978-1305637108

6th edition

Authors: Michael C. Ehrhardt, Eugene F. Brigham

See More Books

Posted Date: Nov 20, 2023 02:33 AM

See More Questions

Question 4 Calculate the payback period of a project with these cash flows: Period 0: -1000 Period 1: 762 Period 2: 406 Period 3: 250 Enter your answer in years and round to the nearest one-hundredth...
4. How would you find the resistance of a parallel circuit with n identical resistors? (1 mark) I 5. What will be the total resistance and current in a parallel circuit with a 15-volt battery and...
(a) Use a graphing utility to graph the curve given by (b) Describe the graph and confirm your result analytically. (c) Discuss the speed at which the curve is traced as t increases from -20 to 20. x...
Determine the length of member AB of the truss by first establishing a Cartesian position vector from A to B and then determining its magnitude. Given: a = 1.2 m b = 0.8 m c = 0.3 m d = 1.5 m θ...
Management claims that the mean income for all senior-level assembly-line workers in a large company equals $500 per week. An employee decides to test this claim, believing that it is actually less...
Mr. Tam is the front man for the Asian American dance-rock band The Slants. Mr. Tam named his band The Slants to reclaim and take ownership of Asian stereotypes. The band draws inspiration for its...
Belmain Co. expects to maintain the same inventories at the end of 2014 as at the beginning of the year. The total of all production costs for the year is therefore assumed to be equal to the cost of...
produce a reflective comparison of China and the U.S. in terms of social/political/economic systems. Given the focus of this course and this particular module, what is the fundamental basis for the...
1. East Coast Yachts uses a small percentage of preferred stock as a source of financing. In calculating the ratios for the company, should preferred stock be included as part of the companys total...
2. Let G be the usual category of groups and homomorphisms. Let H be the subcategory whose objects are groups and whose morphisms are surjective homomorphisms. Recall that the center of a group G is...
The other item which I sold in the business was a piece of equipment, it was the last piece of equipment that I still owned in that pool of assets. The UCC at the beginning of the year was $3,251. I...
Step-by-step explanation Year Project A Project B Difference 0 -$84,500 -$76,900 -$7,600 1 $29,000 $25,000 $4,000 2 $40,000 $35,000 ...
Brett (aged 50) has the following investments: Investments Details $25,000 $50,000; matures in 3 months $50,000; matures in 12 months Bank account Term deposit Term deposit NAB shares ANZ shares...
Find the following values. Use proper documentation and round to two decimal place.: 1. The future value of a lump sum of $12,500 invested today at 8 percent, annual compounding for 10 years. 2.. The...
Integrate by substitution. Check your answer by differentiation. dy y+3 S dy y + 3 +C
study compares the effectiveness of washing the hands with soap and rubbing the hands with alcohol in hospitals. One group of health care workers used hand rubbing, while a second group used hand...
A copper sphere of 10-mm diameter, initially at a prescribed elevated temperature T;, is quenched in a saturated (1 atm) water bath. Using the lumped capacitance method, estimate the time for the...
You have just graduated from the MBA program of a large university, and one of your favorite courses was "Today's Entrepreneurs." In fact, you enjoyed it so much you have decided you want to "be your...
Mark Collins, luthier and businessman, builds and sells custom-made acoustic and electric stringed instruments. Although located in Maryville, Tennessee, he purchases raw materials from around the...
What are the nominal and effective costs of trade credit under the credit terms of 3 15, net 30? Discuss.
Stage-2 receivables are those in which the payment is delayed by: a. Less than 30 days b. More than 30 days but less than 90 days c. More than 60 days d. More than 90 days
In July 2023, JFI Islamic Bank booked receivables of USD 5,000 from Paragon Parks Limited which were to be received in five equal instalments. The first payment was due on Dec 15, 2023. By the end of...
Which of the following will be used to determine the amount of credit losses? a. The total amount of receivable at risk b. Any change in the credit loss of a receivable due to a decline of credit...

Suppose a company has the probability distribution for annual returns described as a 10% chance of a

Question:

Expert Answer:

To calculate the standard deviation of a probability distribution youll first need to find the mean ... View the full answer

Corporate Finance A Focused Approach

Students also viewed these finance questions