FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Suppose you have a project that has a 0.9 chance of tripling your investment in a year and a 0.1 chance of doubling your investment

Suppose you have a project that has a 0.9 chance of tripling your investment in a year and a 0.1 chance of doubling your investment in a year. What is the standard deviation of the rate of return on this investment? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places.)

Standard Deviation ______ %

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Investments

Investments

Authors: Zvi Bodie, Alex Kane, Alan Marcus, Stylianos Perrakis, Peter

8th Canadian Edition

007133887X, 978-0071338875

More Books

Students also viewed these Finance questions

Question

★★★★★
List all 3-permutations of {1, 2, 3, 4, 5}. The remaining exercises in this section develop another algorithm for generating the permutations of {1, 2, 3, . . . , n}. This algorithm is based on...

Answered: 1 week ago

Question

★★★★★
The three laser beams shown in FIGURE 26-73 meet at a point at the back of a solid, transparent sphere. In figure 26-73 (a) What is the index of refraction of the sphere? (b) Is there a finite index...

Answered: 1 week ago

Question

★★★★★
How does the quality of the relationship between a child and parent affect the childs relationships as an adult?

Answered: 1 week ago

Question

★★★★★
Block B, with mass 5.00 kg, rests on block A, with mass 8.00 kg, which in turn is on a horizontal tabletop (Fig. 5.72). There is no friction between block A and the tabletop, but the coefficient of...

Answered: 1 week ago

Question

★★★★★
1 . HCP issues $ 1 0 0 0 par, 6 - year zero - coupon bonds with a yield of 9 % . a . For how much will the bonds sell? b . What is the accrued interest on the bonds for years 1 - 6 ? c . Assuming...

Answered: 1 week ago

Question

★★★★★
Give an example in detail of a relation on the set A = {1, 2, 3,4, 5} that is both symmetric and transitive, but not reflexive. 2 answers

Answered: 1 week ago

Question

★★★★★
A goes to B's shop & purchases a silk saree thinking that it is made ofBanarast silk. The shopkeepers knows that 'A's thinking is wrong. Hehowever, does not correct 'A's impression latter on, when 4...

Answered: 1 week ago

Question

★★★★★
Logistics Solutions provides order fulfillment services for dot.com merchants. The company maintains warehouses that stock items carried by its dot.com clients. When a client receives an order from a...

Answered: 1 week ago

Question

★★★★★
Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for one unit of Zoom are given below: Direct materials Direct labor Hours Standard...

Answered: 1 week ago

Question

★★★★★
On January 1, 2025, Crane, Inc. signs a 10-year noncancelable lease agreement to lease a storage building from Monty Warehouse Company. Collectibility of the lease payments is reasonably predictable...

Answered: 1 week ago

Question

★★★★★
You need to implement a Teams Rooms system in four meeting spaces named Conference1, Conference2, Conference3, and Conference4. The solution must meet the following requirements: Each Teams Rooms...

Answered: 1 week ago

Question

★★★★★
What criteria are helpful for assessing the quality of organisational sources of evidence? a Objectivity, subjectivity, accuracy, significance. b Authenticity, credibility, representativeness,...

Answered: 1 week ago

Question

★★★★★
What issues should you take into account if you decide to make use of evidence from published diaries, memoirs or autobiographies? a They were produced for commercial intent. b It is likely that they...

Answered: 1 week ago

Question

★★★★★
What issues need to be considered when evaluating sources of evidence about an organisation? a The hand-in date of your research report. b Whether the organisation is well known or not. c Whether you...

Answered: 1 week ago

Previous Question Next Question