Time left 1:23:23 tate probability Return on A RETURN ONB POOR 40% |-0.06 -0.09 NORMAL 35% 0.16 0.14 GOOD 25% 0.2 0.3 Weight a Weight b 4 91

Q: (19) (Black Scholes d1 and d2) Assume S=32, K=30, T=3 months, R= 2%, Sigma Volatility = 40%. Compute…

A: The given problem relates to Black scholes model.

Q: Market condition Probability Return on A Good .10 8% Average day .80 10% Bad .10 -45% What is the…

A: To Find: Standard Deviation of A

Q: YYYYMM Return(Stk1) Return(Stk2) Return(Market) Return(T-bill) 201701 7.75% 3.00% 6.18% 0.20% 201702…

A: The difference between the expected return by CAPM (capital asset pricing model) and the expected…

Q: Beta Market 1 Firm A 1.25 Firm B 0.6 Market Return 10% Risk Free Rate 2% The market risk premium is…

A: In this question we require to compute the market risk premium from the following details: Beta of…

Q: Asset A has a reward to risk ratio of.o6 and a beta of 1.2. The risk-free rate is 4%. What is the…

A: Calculate the reward to risk ratio as follows: Reward to risk ratio = (Expected return - risk free…

Q: Return 19.34% 6.99% 38.99% Deviation of retums 6 prediction interval of the S&P500 is between % and…

A: When returns are normally distributed than we can use z score from table available and get…

Q: 1:57:22 REMAINING O Question 3 of 100 The following data is the planned rates by type of room: Room…

A: Total prices of all the rooms = (40*$70) + (100*$100) = $12,800   Total number of rooms = 40 + 100 =…

Q: The Simple Exponential Sr is: (round to 2 decimal plae Naive x(Period) Y(Sales) Forecast Error 14

A: Answer  Let forecast for period 1=13 Forecast for period 2=13+0.25*(13-13)=13 Forecast for period 3=…

Q: YYYYMM Return(Stk1) Return(Stk2) Return(Market) Return(T-bill) 201701 7.75% 3.00% 6.18% 0.20% 201702…

A: The Capital Asset Pricing Model (CAPM) is a mathematical model that explains the relationship…

Q: bility pution Flow of ct A .10 .20 .40 13000 13500 14000 Flow of ct B 12000 13000 14000 equired to…

A: Note : As per the guidelines, only first three parts will be answered. Kindly post the remaining…

Q: 1,000 2,000 3,000 4,000 6,000 U Area G represent: Select one: O a. Lossos Area O b. Break Even point…

A: CVP analysis evaluates the connection between total revenues, total costs, and net income due to the…

Q: Zor the Cagsh Flow showon, the value of A Cachen 1-15, és. 10000 A 2 A $ 1633.9 26 23.9 erelolo 16…

A: The present value analysis refers to the analysis of cash flows. The cash flows can be inflows and…

Q: solve for annualized log-return and annualized volatility of log returns. Last end of day value was…

A: Log Return is required for Statistical Evaluation, If we are having an Average Daily log Return…

Q: ginning of curr with the follow lative preferenc a value P12, aut areş, P1,000,000

A: To find the amount of ordinary share and preference share as,

Q: An asset has values S(0) = 10 and S(1, 1) = 9 with up factor u = 1.1 and the return over one…

A: The no arbitrage rule is as follows:0< d< 1+r or R < u or 0 < π < 1 we are given S(1,…

Q: Calculate :  M2 measure T2 measure Information Ratio (appraisal ratio) Fund  Average return…

A: Since you have posted a question with multiple sub-parts, we will solve first three sub parts for…

Q: Assume i=0%, beta=1. Consumer has income of 80 in year 1, 100 in year 2.  Without gov't…

A: Beta =1 Income in year 1 = 80 Income in year 2 = 100 Interest Rate (i) = 0%

Q: Find the internl ate f return for the following chrose tr poritica Sulutin A =10 Bo-l00 to 1 A, = 50…

A: Capital Budgeting Techniques: Capital Budgeting techniques are used to evaluate prospective…

Q: Compute the expected rate of return on investment i given the followinginformation: Rf = 8%; E(RM) =…

A: Capital asset pricing model formula:

Q: Probability Return 0.35 -2% 0.35 12% 0.3 18% Expected return is ______ ?

A: The table is: Probability Return 0.35 -2% 0.35 12% 0.3 18%

Q: A firm has three investment alternatives. Payoffs are in thousands of dollars. a. Using the expected…

A: The decision based on the expected value approach is based on the sum of cash flows for a particular…

Q: d. 33 percent 7. Comparing the amount of a balance sheet item in one year to the amount for the same…

A: The income statement shows all the revenue, expenses, and net profit and the Balance sheet shows the…

Q: (b) XYour answer is incorrect. Try again. Compute the gross profit rate. (Round answer to 2 decimal…

A: Gross profit rate = Gross profit/Net sales

Q: Common-size and trend percents for Roxi Company’s sales, cost of goods sold, and expenses follow.…

A: A common size income statement is an income statement in which each line item is expressed as a…

Q: Over a particular period, an asset had an average return of 6.3 percent and a standard deviation of…

A: From the perspective of finance, the concept of standard deviation can help investors to quantify…

Q: Usin CAPM, compute the cost of capital with risk free rate of 5%, market rate of return 8% and Beta…

A: Risk free rate = 5% Beta = 1.50 Market return = 8%

Q: So: X LAssignments: 22S-F x 6 Question 6 - Exam 2 x b Login | bartleby Q FIN 3 A…

A: Expected Return is the amount of profit or gain that can be expected by the investor on the basis of…

Q: b-1. What was the arithmetic average risk premium over this period? (A negative answer should be…

A: Standard Deviation: It is a statistical measure used to measure the dispersion of a set of data…

Q: 1. Compute the expected margin for Crawford Company. (Round your percentage answer rounded to two…

A: 1)  Expected margin=sales-cost of goods sold ÷ sales (or) revenue -cost÷ revenue    sales =…

Q: Prob. Return (%) B 0.1 40 G 0.2 30 O 0.3 15 L 0.2 2 S 0.2 -12 where B-Bloom,G-Good,…

A: Risk is a factor which arises due to the possibility of differences between the actual outcome and…

Q: Calculate the Average return of Company A and Company B Year Company A Company B 1 (-10) 8. 6. 25…

A: Following is the answer to the question

Q: a-1. Determine the unadjusted rate of return and (use ave places. (i.e., 0.2345 should be entered as…

A: IRR is a tool that is used to calculate the return over the project cash flow or its investment. If…

Q: States Probability Asset M Return Asset N Return Asset O Returı Вoom 35% 14% 23% 2% Normal 55% 11%…

A: Expected return = Sum of (Probability * (Asset M return * Weight +Asset N return * Weight +Asset O…

Q: Q 01: (a) Assume D0 = Rs. 5.50, g is a -7%, and rs = 13%. Find the P^,? (b) Suppose g = 0 for t = 1…

A: Dividend Discounted Model (DDM) is a financial approach that helps in computing the price of the…

Q: If assets are $348,000 and liabilities are $188,000, then equity equals: Multiple Choice 6 Ints S…

A: Answer:-  Equity = Assets - Liabilities =$ 348,000 - $188,000 = $  160,000

Q: Probability % m 35- 30- A 25- 20- 15- 10- 5- 0- C A A: -20% return B: -15% return C:0% return D: 15%…

A: GIVEN, STOCK probability return A 10% -20% B 20% -15% C 15% 0% D 25% 15% E 30% 20%

Q: Calculate the geometric average for the following returns

A: Geometric Average: This average also known as compounded annual growth rate or weighted rate of…

Q: Estimating the SML Equation 13.2 ;=17 = Yo + Y1 * b; i = 1,... 100 CAPM is valid, then yo and y,…

A: This question is based on the CAPM Regression equation which shows the relationship between the…

Q: of 15% of ay investment returns above the l-bill răte, d suffers a loss of 10.5%. What rate of…

A: Incentive fee = 15% T-bill rate=2% First year loss=10.5 Rate of return in the second year for…

Q: Sensitivity Analysis (in '000) Optimitic(10% positive) Pessimistic $2,539,026.00 2,539,026*(1+10%) =…

A: Sensitivity analysis is a technique to estimate the maximum profit and loss by changing variables.…

Q: YYYYMM Return(Stk1) Return(Stk2) Return(Market) Return(T-bill) 201701 7.75% 3.00% 6.18% 0.20% 201702…

A: The Capital Asset Pricing Model (CAPM) is a mathematical model that explains the relationship…

Q: States Probability Asset M Return Asset N Return Asset O Return Вoom 32% 13% 23% 5% Normal 50% 11%…

A: Portfolio Return = Return on asset M * 1/3 + Return on asset N * 1/3 + Return on asset O * 1/3…

Q: Solve the newsvendor problem. Probability 0.2 0.1 0.1 0.2 0.3 0.1 Value 2 3 4 6 Purchase cost c 15…

A: Critical ratio or service level is calculated as: Critical ratio =…

Q: Month Madison Cookies Sophie Electric 1 -0.04 0.07 2 0.06 -0.02 3 -0.07…

A: Introduction: Covariance can be defined as a metric which helps in establishing relationship between…

Q: The 4 mutually exclusive alternatives shown below are compared by the incremental B/C method. What…

A: Incremental B/C ratio refers to the  Incremental Benefit-Cost Ratio.

Inventory Accounting

Inventory accounting is that branch of accounting that helps in determining the specific value of assets at different stages of production and development.