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 01 chance of halving your investment

image text in transcribed
Suppose you have a project that has a 0.9 chance of tripling your investment in a year and a 01 chance of halving 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

Managing Finance A Socially Responsible Approach

Managing Finance A Socially Responsible Approach

Authors: D. Crowther

1st Edition

0750661011, 978-0750661010

More Books

Students also viewed these Finance questions

Question

★★★★★
In recent years fresh bagel sales have been growing at about 30% per year. Once considered an ethnic food to be eaten with cream cheese and lox, bagels now "have become the new donut to bring to the...

Answered: 1 week ago

Question

★★★★★
The board of trustees of an independent school district is contemplating several policy changes and other measures, all of which it intends to implement within the fiscal year that ends August 31,...

Answered: 1 week ago

Question

★★★★★
If A and B are two events on a sample space such that P(A) 0, P(B) 0, then we have P(A|B)P(B|A) = 1.

Answered: 1 week ago

Question

★★★★★
At the beginning of 2018, Thompson Service, Inc., showed the following amounts in the stockholders' equity section of its balance sheet. Stockholders' equity: Capital stock, $1 par value, 500,000...

Answered: 1 week ago

Question

★★★★★
Exercise 7.12 Yariable Costing lncome Statement: Reconciliation Zot-2. Lt The conpeny's selting and abnicistriave erpenses consst of 5292.500 ger year an fand expe fuperest The 58 unt produet cost...

Answered: 1 week ago

Question

★★★★★
Respond to the following: You are a restaurant manager. A server calls your attention to a booth of four men who are talking loudly, using profanity, and being belligerent. How would you handle the...

Answered: 1 week ago

Question

★★★★★
Assume the taxpayer does NOT wish to contribute to the Presidential Election Fund, unless otherwise stated in the problem. Assume all taxpayers did NOT receive, sell, send, exchange, or otherwise...

Answered: 1 week ago

Question

★★★★★
1.You decided to sell Treasury bill futures contracts with a quoted price was 92-50. When you close this position, the quoted price was 91-75. Determine the profit or loss per contract, ignoring...

Answered: 1 week ago

Question

★★★★★
DBC, TDABC, and ABC The Bienestar Cardiology Clinic has two major activities: diagnostic and treatment. The two activities use four resources: nursing, medical technicians, cardiologists, and...

Answered: 1 week ago

Question

★★★★★
Exercise 4-1 (Algo) Computing revenues, expenses, and income LO C1 Fill in the blanks in the following separate income statements a through e. Sales Cost of goods sold Merchandise inventory,...

Answered: 1 week ago

Question

★★★★★
b 4th Quarter Garden Depot is a retailer that is preparing its budget for the upcoming fiscal year. Management has prepared the following summary of its budgeted cash flows: 1st Quarter 2nd Quarter...

Answered: 1 week ago

Question

★★★★★
Explain the various kinds of retirement plans.

Answered: 1 week ago

Question

★★★★★
Explain workplace flexibility (work-life balance).

Answered: 1 week ago

Question

★★★★★
Discuss global issues in employee benefits.

Answered: 1 week ago

Previous Question Next Question