Answer and Explanation:
a) Expected Return = P1 * X1 + P2 * X2 + .... Pn * Xn
Expected Return = (0.1 * -40%) + (0.1 * -14%) + (0.3 * 14%) + (0.4 * 39%)+ (0.1 * 59%)
Expected Return = -4% - 1.4% + 4.2% + 15.6% + 5.90% = 20.30% --> Answer
b) Standard deviation is square root of probability weighted squared deviations of individual values from expected values.
Std deviation = 27.98%
c) Coefficient of Variayion = Standard deviation/Expected return = 27.98%/20.30% = 1.38
d) Sharpe' Ratio = (Expected return - Rsik free rate)/Std deviation = (20.3% - 3%)/27.98% = 0.62
Answer:
$812.20
Explanation:
Given the following bond characteristic:
Coupon rate = 12%
Market or yield rate = 15%
Years to maturity = 20 years
Face or par value = $1000
Inputting the values into a bond value calculator, the bond value output is : $812.20
This means that the sum of the present value of all likely coupon payment and par at maturity. It is simply the present value of all cash streams it is projected to generate.
Answer:
$375
Explanation:
A stock you own earned: $200, $500, $100, and $700 over the last four years.
We need to find the annual gain in value over the four years. We know that,
Mean = sum of observations/total no. of observations
Put all the values,
So, the required mean annual gain is equal to $375.
Answer:
The correct answer is letter "C": cash, accounts receivable, and inventory.
Explanation:
A company's assets represent all property the firm can use to generate income. Thus, assets imply talking about <em>cash, accounts receivable, inventory, pre-paid investments, buildings, land, machinery, </em>and <em>vehicles</em> among others. Assets can also be intangible such as <em>patents, trademarks </em>or <em>copyrights</em>. All of them are destined to increase the organization's value.
