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

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Question 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

Question 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%

Question 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?

Note: Please provide through step by step calculations.

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Category:- Basic Finance
Reference No.:- M91162764

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