Question: You should recognize that basing a decision solely on expected returns is appropriate only for risk-neutral individuals. Because your client, like most people, is risk-averse,

You should recognize that basing a decision solely on expected returns is appropriate only for risk-neutral individuals. Because your client, like most people, is risk-averse, the riskiness of each alternative is an important aspect of the decision. One possible measure of risk is the standard deviation of returns.

Calculate this value for each alternative, and fill in the blank on the row for in the table.

Step by Step Solution

★★★★★

3.48 Rating (171 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

The standard deviation is calculated as follows s High Tech 270 124 2 01 70 124 2 02 150 ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

43-B-A-I-A (441).docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!

How should Jill go about explaining the riskiness of each bond? Rank the bonds in terms of their relative riskiness.

Standard deviation of returns is often used as a measure of a mutual funds volatility (risk). A larger standard deviation of returns is an indication of higher risk. According to Morningstar.com...

Calculate the expected rate of return on each alternative and fill in the blanks on the row for r in the table.

The alternatives are recession, below average, average, above average, and boom. Please find each one The same alternatives. Thank You \begin{tabular}{|c|c|c|c|c|c|c|} \hline State of & & & High & &...

A) Calculate the expected rate or return on each alternative. B) You should recognize that basing a decision solely on expected return is appropriate.. C) Suppose you suddenly remembered that the...

State of High U . S . Market the Economy Probability T - Bills Tech Collections Rubber Portfolio Recession 0 . 1 4 . 0 % ( 2 5 . 5 % ) 2 4 . 5 % 3 . 5 % ( 1 5 . 5 % ) Below Average 0 . 2 4 . 0 % ( 9...

RISK AND RETURN Assume that you recently graduated with a major in finance. You just landed a job as a financial planner with Merrill Finch Inc., a large financial services corporation. Your first...

please answer b-h Csaptos and Rates of Return INTEGRATE CASE ILL FINCH INC. RISK AND RETURN Assume that you recently graduated with a major in finance. You just landed a job as a financial planner...

8-23 RISK AND RETURN Assume that you recently graduated with a major in finance. You just landed a job as a financial planner with Merrill Finch Inc, a large financial services corporation. Your...

Calculate this value for each alternative and fill in the blank on the row for in the table. What type of risk is measured by the standard deviation? 8-23 RISK AND RETURN Assume that you recently...

According to a November 2008 survey completed by the Pew Internet & American Life Project [www. pewinternet.org], about 74% of all adult Internet users say they went online for news and information...

A population of rabbits oscillates 32 above and below an average of 94 during the year, hitting the lowest value in January (t = 0). Find an equation for the population, P, in terms of the months...

please Show all work to your answers Answer the 3 questions below showing all your work Q 3 : Assume the following information: 1 8 0 - day U . S . interest rate = 8 % 1 8 0 - day British interest...

1,2-product HBr 1,4-product

Sarah, a 63-year-old female with a past medical history significant for diabetes mellitus, cirrhosis, gout and a 30-pack a year smoking history presents to the emergency room with chest pain...

Q1: What are the three parts of the entire process of logistics?

Draw as many structural isomers as you can for cyclic alcohols having the formula C 4 H 6 O. Try to draw at least five. (There are more than five.)

Suppose that 1 Danish krone could be purchased in the foreign exchange market today for $0.16. If the krone appreciated 4% tomorrow against the dollar, how many krones would a dollar buy tomorrow?

1. Recreate Table 19.1 for the following currencies: Australian dollar, British pound, Canadian dollar, Chinese yuan, EMU euro, Japanese yen, and Swiss franc. Be sure to show both the direct...

MC#4: Chapter 7 of the Bankruptcy Act is designed to do which of the following? a. Establish the rules of reorganization for firms with projected cash flows that eventually will be sufficient to meet...

List all the elements of the following set. Use set notation and the listing method to describe the set. {4, 8, 12,..., 32} Express the set using set notation and the listing method.

2. (10 points) A survey' asked a random sample of n = 2752 US adults whether they had visited a public library in the last 12 months. The results for males and females are show in the table below....