Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

Part 1

Barbara is considering investing in a stock and is aware that the return on that investment is particularly sensitive to how the economy is performing. Her analysis suggests that four states of the economy can affect the return on the investment. Using the table of returns and probabilities below, find

Probability Return

Boom 0.2 25.00%

Good 0.1 15.00%

Level 0.6 10.00%

Slump 0.1 -5.00%


Part 2. What is the standard deviation of the return on Barbara's investment? (Round intermediate calculations and answer to 5 decimal places, e.g. 0.07680.)

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M939973

Have any Question? 


Related Questions in Basic Finance

Following the end of world war ii in 1945 the reichsmark

Following the end of World War II in 1945, the Reichsmark, the German currency, lost so much value that a barter economy arose. During this period, many Germans used U.S. cigarettes as currency. Why might cigarettes, rat ...

Class while us treasury stock and bonds are backed with the

Class, while US Treasury Stock and Bonds are backed with the credit of the US Government, there are still risks attached to these investments. What are these risks?

1 banking services list and describe some of the banking

1. Banking Services. List and describe some of the banking services offered by financial institutions. 2. Debit Versus Credit Card. What is the difference between a debit card and a credit card? 3. Special Services. Name ...

1 complete the following table2 comment on the following

1 .Complete the following table: 2 .Comment on the following statement: "Forward rates are good predictors of future interest rates.

1 what forces have been driving the increased

1. What forces have been driving the increased internationalization of business? 2. Explain the different orientations to international business that can be found among executives. 3. What are the various situations in w ...

1 what is the connection between the truth-in-lending act

1. What is the connection between the Truth-in-Lending Act and the annual percentage rate (APR)? 2. What is the effective borrowing cost? 3. What is meant by a nominal rate of interest on a mortgage loan? 4. What is the ...

Look again at figure 83 on page 237 and answer the

Look again at Figure 8.3 on page 237 and answer the following questions. a. Why is the demand curve for foreign exchange downward sloping? b. Why is the supply curve for foreign exchange upward sloping? c. Who would be i ...

What is the relation between a strategy and an objective

What is the relation between a strategy and an objective? How are comparative advantages different from competitive advantages? What is a strategic plan? What is a financial plan, and how does it relate to a company's st ...

Pets store inc sells on terms of 320 net 75 what is the

Pets Store Inc. sells on terms of 3/20, net 75. What is the effective annual cost of trade credit under these terms? Use a 365-day year.

Explain the difference between a short hedge and a long

Explain the difference between a short hedge and a long hedge ? a. What is the basis? b. How is the basis expected to change over the life of a futures contract? c. Explain why a strengthening basis benefits a short hedg ...

  • 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

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro