1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
frutty [35]
4 years ago
14

Assume the risk-free rate is 3%. Calculate the stock's expected return, standard deviation, coefficient of variation, and Sharpe

ratio. Do not round intermediate calculations. Round your answers to two decimal places.
Business
1 answer:
Fed [463]4 years ago
8 0

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

You might be interested in
What is the present value of $12,350 to be received 4 years from today if the discount rate is 5 percent?
Readme [11.4K]

Answer:

The correct answer is $10,160.38

Explanation:

According to the scenario, the given data are as follows:

Future value = $12,350

Number of years (n) = 4 years

Discount rate (r) = 5%

Hence, Present value can be calculated by following formula:

Future value = Present value ( 1 + r )^{n}

$12,350 = Present value ( 1 + 0.05 )^{4}

Present value = \frac{$12,350}{1.05^{4} }

Present value = $10,160.38

Hence, the correct answer is $10.160.38

5 0
3 years ago
Under CARD, colleges and universities must: a. disclose financial relationships with the credit card companies. b. provide debt
Vilka [71]

Answer: D. do all of these.

Explanation:CARD(credit card accountability, responsibility and disclosure) act is a set of guidelines and rules which guides consumers and help them to better understand their credit cards and reduce and control unfair practices from credit card companies, those rules, also concerns college students.

ALL THE OPTIONS ARE CORRECT REGARDING CARD RULES AND GUIDELINES FOR COLLEGE STUDENTS.

3 0
3 years ago
John occasionally borrows the car of his friend, sophie. sophie has a pap with liability limits of 100/300/50. john also has a p
Vaselesa [24]

Answer:

Sophie's policy will pay $100000, John's policy will pay $200000 ( A )

Explanation:

John having a pa with liability limits 250/500/50 means that John has a liability limit of $200000 and since John was the driver of the Sophie's vehicle he will pay $200000 due to the driver policy

and Sophie's policy will pay the remaining $100000 as a secondary payment since she was not the driver when the accident happened .

total liability in Bodily injury suffered by one person during the cause of the accident = $300000  

3 0
3 years ago
Read 2 more answers
Learning Objective 15-C2: Explain job cost sheets and how they are used in job order costing. Skip to question In a job order co
Dafna1 [17]

Answer:

Job Cost Sheets:

In a job order costing system, the costs of producing each job are accumulated on a separate job cost sheet.

Explanation:

A job cost sheet is used in a job order costing system to record all manufacturing costs related to each job. The costs that are recorded in the job cost sheet include direct material, direct labor, and manufacturing overhead costs.  Since these job costs are traceable to their respective jobs, the actual direct material and labor costs are used.

6 0
3 years ago
A holder in an investment.
kumpel [21]
I think it's b honestly
3 0
4 years ago
Read 2 more answers
Other questions:
  • The number at the bottom right of each supplier’s box shows the portion of Boeing’s costs in thelast year that went to that supp
    14·1 answer
  • At the end of 2016, safer co. has accounts receivable of $700,000 and an allowance for doubtful accounts of $25,000. on january
    12·1 answer
  • What due dates did not change for tax years ending in 2016?
    14·1 answer
  • Which of the following transactions decrease cash? 1) Purchase inventory from cash 2) Pay trade accounts payable 3) Accruing ope
    13·1 answer
  • Franklin Manufacturing provided the following information for the month ended Marchâ 31:
    8·1 answer
  • Howard plans on leaving $625 in his savings account for 19 months. The account pays 5.7% simple interest annually. what will be
    10·1 answer
  • 15. Which NIMS Management Characteristic helps to eliminate confusion caused by multiple, conflicting directives?
    13·1 answer
  • Based on the following data, what is the cost of the land?
    9·1 answer
  • You plan to borrow $35,000 at a 7.5% annual interest rate. The terms require you to amortize the loan with 7 equal end-of-year p
    7·1 answer
  • These degrees are offered by state universities and private colleges/universities and include Masters and Doctoral degrees.
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!