Consider the following information about Stocks I and II:
Rate of Return If State Occurs
Sta...
Business, 12.08.2020 05:01 brattymoo1009
Consider the following information about Stocks I and II:
Rate of Return If State Occurs
State of Probability of
Economy State of Economy Stock I Stock II
Recession .30 .05 −.30
Normal .45 .22 .10
Irrational exuberance .25 .05 .50
The market risk premium is 6 percent, and the risk-free rate is 2 percent. (Do not round intermediate calculations. Enter your standard deviation answers as a percent rounded to 2 decimal places, e. g., 32.16. Round your beta answers to 2 decimal places, e. g., 32.16.)
The standard deviation on Stock I's expected return is percent, and the Stock I beta is . The standard deviation on Stock II's expected return is percent, and the Stock II beta is . Therefore, Stock is "riskier".
Answers: 3
Business, 22.06.2019 03:00
Sonic corp. manufactures ski and snowboarding equipment. it has estimated that this year there will be substantial growth in its sales during the winter months. it approaches the bank for credit. what is the purpose of such credit known as? a. expansion b. inventory building c. debt management d. emergency maintenance
Answers: 1
Business, 22.06.2019 21:10
Ahospital purchases a $500,000 magnetic resonance imaging (mri) machine that has a useful life of 9 years. the salvage value at the end of 9 years is $77,000. (a) write a linear equation that describes the value y (in dollars) of the mri machine in terms of the time t (in years), 0 ≤ t ≤ 9. (b) find the value, in dollars, of the machine after 6 years. $ (c) find the time, in years, when the value of the equipment will be $140,000. (round your answer to two decimal places.) yr
Answers: 2
Business, 23.06.2019 12:50
Of the following combinations of financial instruments, which depicts the correct ranking of high to low risk (moving from left to right)? commercial paper; preferred stock; bankers' acceptances state & local government bonds; u.s. treasury bonds; aaa-rated corporate bonds common stock; leases; u.s. treasury notes preferred stock; common stock; u.s. treasury bills
Answers: 1
Business, 23.06.2019 14:20
Jessica wants to plan where she will place furniture in her room, so she has drawn a scale model of her room in order to begin planning. the scale model is 11 inches long and 8.5 inches wide. jessica notices that the door to her room takes up 1.75 inches on the right-side wall of her room, and she realizes that she cannot place any furniture in the area that the door turns through when it is opened.
Answers: 3
Mathematics, 08.05.2021 02:00
Computers and Technology, 08.05.2021 02:00
History, 08.05.2021 02:00
Health, 08.05.2021 02:00
Mathematics, 08.05.2021 02:00
Mathematics, 08.05.2021 02:00
Mathematics, 08.05.2021 02:00
History, 08.05.2021 02:00