1 what is the approximate variance of returns if over the, Ask an Expert

Finance

1. What is the approximate variance of returns if over the past 3 years an investment returned 8.0%, -12.0%, and 15.0%?
A. 31
B. 131
C. 182
D. 961

2. What is the approximate standard deviation of returns if over the past 4 years an investment returned 8.0%, -12.0%, -12.0%, and 15.0%?
A. 9.26%
B. 10.26%
C. 11.26%
D. 12.01%

3. A proposed capital project will cost $20 million and generate $4 million annually in after-tax cash flows for 10 years. The cost of capital for a project of this risk level is 12.2%. Should the project be accepted? Why or why not?

View complete question

Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91000647

Have any Question?Write your Review or question?

Related Questions in Basic Finance

Please help me study for a test by helping me solve this

Please help me study for a test by helping me solve this question. Please show work/formulas used. A cash flow stream has the following with a discount rate of 16.25%. Years: 0 1 2 3 4 CFs: $0 $0 $400 $0 $200 What is the ...

What are financial ratios commonly used in quantitative

What are financial ratios commonly used in quantitative models of debt ratings? List THREE financial ratios that represent three different factors and explain why these ratios can capture the company's ability to meet it ...

Please show work ex formula etcyou are given the following

Please show work ex: formula, etc. You are given the following cash flow information. The appropriate discount rate is 6 percent for Years 1-4 and 7 percent for Years 5-10. Payments are received at the end of each year. ...

What are the possible downsides of momentum investing is it

What are the possible downsides of momentum investing? Is it worth it do utilise this approach?

Corporate fund started the year with a net asset value of

Corporate Fund started the year with a net asset value of $15.90. By year-end, its NAV equaled $13.80. The fund paid year-end distributions of income and capital gains of $3.30. What was the rate of return to an investor ...

Please show all work use of formula etcyou have just joined

Please show all work (use of formula, etc) You have just joined the investment banking firm of Danny, Chatman, and Howard. They have offered you two different salary arrangements. You can have $80,000 per year for the ne ...

A company paid 13000 in cash dividends the retained

A company paid $13,000 in cash dividends. The retained earnings account decreased by $3,100 in the same period. What is the net income for the period?

You are are evaluating a project that costs 1140000 has a

You are are evaluating a project that costs $1,140,000, has a ten-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 54,000 units p ...

Tapley dental supply company has the following datanet

Tapley Dental Supply Company has the following data: Net Income = $240 Sales = $10,000 Total assets = $6,000 Debt ratio = 75% TIE ratio = 2.0 Current ratio = 1.2 BEP ratio = 13.33% If Tapley could streamline operations, ...

A call option on a stock has an exercise price of 3450 if

A call option on a stock has an exercise price of? $34.50. If the stock price at expiration is? $37.50, what is the option payoff for a short call? position?

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Basic Finance Expert