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1: You have an opportunity to invest in project X with the following expected rates of return: Probability Rate of Return .25 -.10 .25 .00
1: You have an opportunity to invest in project X with the following expected rates of return: Probability Rate of Return .25 -.10 .25 .00 .50 .10 Please: 1. Calculate the expected return for project X. 2. Calculate the standard deviation for project X. 3. An investment has a standard deviation of 12 percent and an expected return of 7 percent. What is the coefficient of variation for this investment? Question 2: Use the following information to calculate: Stock Rit Rmt Bi A 11.5% 4.0% 0.95 B 10.0 8.5 1.25 C 14.0 9.6. 1.45 D 12.0 15.3 0.70 E 15.9 12.4 -0.30 Please: 1. Calculate the abnormal rate of return during period t. 2. Calculate the abnormal rate of return during period t assuming the systematic risk Bi. Question 3: Suppose you buy a round lot of H&H Industries stock on 55% margin when the stock is selling at 20$ a share. The broker charges a 10% annual interest rate, and commissions are 3% of the stock value on the purchase and sale. A year later you received a0.50$ dividend per share and sell the stock for 27$ a share. Please: What is your rate of return on H&H Industries
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