You have been given this probability distribution for the holding period return for Cheese, Inc stock:...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
You have been given this probability distribution for the holding period return for Cheese, Inc stock: State of Economy Boom Normal Growth Recession Probability .20 .45 .35 HPR 24% 15% 8% Assuming that the expected return on Cheese's stock is 14.35%, what is the standard deviation of these returns? A. 4.72% B. 5.74% O C. 6.30% O D. 4.38% You have been given this probability distribution for the holding period return for Cheese, Inc stock: State of Economy Boom Normal Growth Recession Probability .20 .45 .35 HPR 24% 15% 8% Assuming that the expected return on Cheese's stock is 14.35%, what is the standard deviation of these returns? A. 4.72% B. 5.74% O C. 6.30% O D. 4.38%
Expert Answer:
Posted Date:
Students also viewed these finance questions
-
Gabriele Enterprises has bonds on the market making annual payments, with seven years to maturity, a par value of $1,000, and selling for $974. At this price, the bonds yield 7.2 percent. What must...
-
If a companys beta were to double, would its expected return double?
-
How can an independent retailer avoid becoming over-reliant on the owner?
-
Jason Edson and Peggy Karam agreed to liquidate their partnership on April 30 of the current year. On that date, after financial statements were prepared and closing entries were posted, the general...
-
The Amato Theater is nearing the end of the year and is preparing for a meeting with its bankers to discuss the renewal of a loan. The accounts listed below appeared in the December 31, 2012, trial...
-
I need this problem better explained . The answer is not clear and do not understand how it helps .
-
A company has bonds paying $100 per year and a face value of $1000 due in ten years. They were issued at $1000 so the market determined the required return was 10%. If the industry becomes more risky...
-
A bank in Toronto charges 2.7% commission to buy and sell currencies. Assume that the current exchange rate is US$1 = C$1.1173. a. How many Canadian dollars will you have to pay to purchase US$3,500?...
-
Using the data below make balance sheet and cash flow statement. Determine the total asset, total liabilities, net worth, total cash inflow, total cash outflow and the net cash flow Rent for the...
-
Home Hardware reported beginning inventory of 20 shovels, for a total cost of $140. The company had the following transactions during the month: January 2 Sold 6 shovels on account at a selling price...
-
How much discount interest will there be if 8 2 , 5 0 0 is due at the end of 4 . 5 years with 1 0 . 9 % interest rate
-
CALCULATE THE INITIAL COSTS, CALCULATE THE OPERATING CASH FLOW, CALCULATE THE TERMINAL NON OPERATING CASH FLOW, CALCULATE THE NPV . Initial Equipment $ 6 5 , 0 0 0 Project Life 3 Years Sales$ 5 5 ,...
-
PART A On 1 January 20X0O Moore Ltd entered into a contract with Nutly Ltd to sell three products for a total transaction price of $500,000. Each product is appropriately classified as a separate...
-
The Heese Restaurant Group manufactures the bags of frozen French fries used at its franchised restaurants. Last week, Heeses purchased and used 101,000 pounds of potatoes at a price of $ 0.70 per...
-
Total revenue for a perfectly competitive firm equals the _________ times the _________.
-
If perfectly competitive producers are currently making economic profits, the market supply curve will shift to the right over time as more firms _________ and existing firms _________.
-
As entry into a profitable industry pushes down the market price, producers will move from a situation where price _________ average total cost to one where price _________ average total cost.
Study smarter with the SolutionInn App