A stock is expected to earn 10.0% over the next year with a 40% probability and 3.0% otherwise. What is the standard deviation of returns based on this scenario analysis? Answer in percent, rounded to one decimal place.

Q: Suppose bank a offers a 229020 year 6.4% fixed rate mortgage with closing cost of 2600 + 4 points…

A: Closing cost refers to the cost which includes some kinds of fees and charges to close the real…

Q: QUESTION 2 You are considering starting a new factory producing small electric heaters. Each unit…

A: concept. Working capital is required for smooth functioning of the project. It represent cash…

Q: You want to buy a $195,000 home. You plan to pay 5% as a down payment, and take out a 30 year loan…

A: The Down-payment is the sum of money first paid for something. No interest will be charged on…

Q: y holding too much capital may result in the lower the return to shareholders. Explain with some…

A: In the company there is one objective is to increase the return on investment for the shareholders…

Q: A contract can be fulfilled by making an immediate payment of $21,100 or equal payments at the end…

A: An annuity is a series of payments that are provided in return for a lump sum amount paid today. It…

Q: Cook Security Systems has a $37,500 line of credit, which charges an annual percentage rate of prime…

A: The current balance will be a function of opening balance, fresh borrowing, less repayment and the…

Q: 13. $500 per month is put into a sinking fund. The interest rate for the fund is 8% compounded…

A: A fund that an entity or individual keeps aside to meet their upcoming obligations is regarded as a…

Q: Sammie's Club wants to buy a 320,000-square-feet distribution facility on the northern edge of a…

A: Going-in capitalization rate/Direct Capitalization Method Projected first-year NOI divided by the…

Q: Commercial Hydronics is considering replacing one of its larger control devices. A new unit sells…

A: The process that helps an entity to evaluate the feasibility and profitability of any project or…

Q: You are deciding between two mutually exclusive investment opportunities. Both require the same…

A: Given Initial investment is $10.3 million Cash inflows of A is $2.17 million Cash inflows of B is…

Q: Bruin, Incorporated, has identified the following two mutually exclusive projects:     Year Cash…

A: formula :

Q: You are considering two job offers: a full-time permanent position that pays $65,000 annually and a…

A: Gross annual income refers to the income that is earned from the business operating activities.…

Q: Stag Corp. will pay dividends of $4.75, $5.25, $5.75 and $7 for the next four years. ($4.75 in year…

A: Year Dividend 1 4.75 2 5.25 3 5.75 4 7.00 Required return = 15% Growth rate after 4th…

Q: A stock had returns of 2 percent, 1.4 percent, -4.2 percent, 5.8 percent, -9.9 percent, and 17.8…

A: To calculate the arithmetic average return we will use the below formula   Arithmetic average return…

Q: Jenkins Corporation is investing in a new piece of equipment at a cost of $6 million. The project is…

A: Profitability Index (PI) = Present Value of future cash inflows / Initial cash outflows   Present…

Q: UF Company is considering Projects S and L, whose cash flows are shown below. These projects are…

A: The cross-over rate refers to the rate of return at which the net present values for both projects…

Q: ,000. Li

A: Present value of the cost or expenses. Concrete Bleachers. The first cost is $350,000. Life is 90…

Q: Conglomerate Inc. just announced that it plans to acquire Tiny Corp., by offering 0.75 shares of…

A: We have to come out with a strategy to exploit the arbitrage opportunity.

Q: a. What are the expected returns of the two stocks? b. What are the standard deviations of the…

A: Expected return Return is the main goal of every investment. The minimum rate of return that an…

Q: 1. Loan Amortization Schedule (P/Y = C/Y) Details: RBC has provided a $50,000 loan to Capilano…

A: We have to find the monthly mortgage payment amount and prepare the loan amortization schedule. We…

Q: Assume that you expect the price of gold to increase over the next month. Does your expectation of…

A: Prices of commodities are determined by market determined and dependent on supply and demand in the…

Q: diego took out 3 year loan for 9,000 that has a 14.3 % simple interest     c) How much total…

A: We have to find the total interest that accumulates on a loan.

Q: Calculate Accounting Rate of Return (on average investment) of Machine A (expressed to two decimal…

A: Concept. Accounting rate of return is the rate of return calculated as dividing average net profits…

Q: 17. Assume that a bank obtains most of its funds from long-term borrowed funds such as Federal Home…

A: We have to assess the impact of an interest rate increase on the bank.

Q: Suppose you are a manager for a certain company. You earn $50,000 per year and are in the 28%…

A: A drop in the level of tax paid by a citizen, corporation, or other taxpayer is alluded to as a tax…

Q: You are trying to pick the least-expensive car for your new delivery service. You have two choices:…

A: EAC stands for Equivalent annual cost refers to the cost that is spent on owning, operating, and…

Q: Vilas Company is considering a capital investment of $198,900 in additional productive facilities.…

A: For a typical capital budgeting project, we have to find the cash payback period, annual rate of…

Q: A stock is selling for $32.70. The strike price on a put, maturing in one year, is $35. The possible…

A: The binomial pricing model is used to price options where the future price of the underlying stock…

Q: Short- Yonge Corporation must arrange financing for its working capital requirements for the coming…

A: Organizations take out loans or credit to run their business. Organization managers should compare…

Q: How do financial institutions help individuals diversify their portfolio risk? In your opinion which…

A: We have to explain how financial institutions help individuals diversify their portfolio risk.…

Q: 1. A man paid 10% down-payment of P200000 for a house and lot and agreed to pay the 90% balance on…

A: Cash flow The money that flows into and out of a business is called cash flow. Cash that moves into…

Q: You own a one-year European call option to buy one acre of Los Angeles real estate. The exercise…

A: We will use the Black Scholes model to value this call option. All the inputs are available with us.

Q: Your portfolio has 20% invested in stock A and 80% invested in stock B. Stock A has an expected…

A: Weight of stock A = 0.2 or 20% Weight of stock B = 0.8 or 80% Volatility of stock A = 15% Volatility…

Q: does open interest mean and where can it be found

A: In the financial markets there is flow of money out and flow coming in so contracts are settled and…

Q: Strange Manufacturing Co. is purchasing a production facility at a cost of $21 million. The firm…

A: Cost of capital = 10% Year Cash flow 0 -2100000 1 7000000 2 7000000 3 7000000 4…

Q: The quoted rate of interest is calculated using the following formula.  Quoted Rate  = r* + IP +…

A: Given r* = 2% IP = 3% MRP = 3% LP =  .6%                                       DRP = .4%

Q: To purchase a Hun and I took out a 25 year mortgage for 275000 that charges 4.25 interest and I want…

A: Solution:- When an amount is borrowed, it can either be repaid as a lump sum payment or in…

Q: A state lotto has a prize that pays $900 each week for 30 years. Find the total value of the prize:…

A: Given Price per week is $900 Term is 30 years Rate is 4%

Q: Currently, Forever Flowers Inc. has a capital structure consisting of 25% debt and 75% equity.…

A: The WACC of a company is the average return that the company provides to all its stakeholders. It is…

Q: n August 1, Felix’s credit card has a balance of $1,125.25. According to the terms of the card’s…

A: We have to estimate the monthly finance charges for the month of August, on average daily balance…

Q: 6. Mary is paid bi-weekly and she is currently 20 years old. Mary wants to have $500 at the end of…

A: A retirement plan refers to the investment to be made in the savings account that provides the…

Q: Purchase price Expected useful life Scrap value Depreciation per year Minimum required rate of…

A: Internal rate of return is one of the capital budgeting methods that are used and at this net…

Q: Suppose research has shown that "common stocks", as measured by the Standard & Poor's 500, have had…

A: Accounting ratios The financial performance of a company can be identified through the calculation…

Q: Finance Question

A: Discounted pay back period is a method of calculating recovery period of initial investment. It is…

Q: You have $1,000 today in your savings account. How long must you wait for your savings to be worth…

A:

Q: 300 300 400 500 100 F i=18% Solve for F Note: Answer may be negative

A: Future value of a present amount With periodic interest rate (r), period (n) and present value (PV),…

Q: An S&P 500 index linked CD matures in 4 years, with the face value the same as the current S&P 500…

A: We need to value the CD. It comprises of two part: a plain vanilla CD plus 60% value of a call…

Q: Given the cash flows of the following two project, which project should the company choose if the…

A: The process through which any project or investment's profitability is evaluated is regarded as…

Q: Stellar Aeronautics, Inc. is trading at a trailing PE of 13.6. Analysts forecast Stellar’s dividends…

A: Stock valuation The process involves valuing the company and comparing the current value of the…

Q: uld you simply explain & give some examples of repurchase agreements (a.k.a., “repos”) in commercial…

A: There are many types of short term instruments used by the federal bank to impart liquidity to the…