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Suppose you want to purchase a 2022 Ford Mustang Mach-E from a local Ford dealer. Its out-the-door price is $55,000. You plan to finance the
Suppose you want to purchase a 2022 Ford Mustang Mach-E from a local Ford dealer. Its out-the-door price is $55,000. You plan to finance the car with a 5-year loan. The loans annual interest rate is 5.99%, and it requires a down payment of $18,000 (made today) and additional 60 equal monthly payments. The first monthly payment is scheduled in a month. Complete sheet 2 of the attached Excel spreadsheet by filling out all the green cells.
1 Probability Distribution The probability distribution is a listing of all possible outcomes and the corresponding probability. 1. Probability Distributions: Calculate Expected Returns 2. Probability Distributions: Calculate Standard Deviation 2.1Calculate Martin Products" Standard Deviation \begin{tabular}{l|l|c|c|c|c|c|} \hline 19 & & & & & \\ 20 & & & Rate of & & & \\ \hline 21 & Economy. & Frobability & Return & Deviation: & & \\ 22 & Which & of This & if This & Actual & & Squared \\ 23 & Affects & Demand & Demand & Expected & Deviation & Deviation \\ \hline 24 & Demand & Deccurring & Docurs & Return & Squared & Prob. \\ 25 & (1) & (2) & (3) & (4) & (5) & (6) \\ \hline 26 & Strong & 0.20 & 50% & & & \\ \hline 27 & Normal & 0.30 & 10% & & & \\ 28 & Weak & 0.50 & 50% & & & \\ \hline 29 & & & & & Variance = \\ \hline \hline \end{tabular} Standard deviation = 2.2 Calculate U.S. Hater's Standard Deviation \begin{tabular}{l|c|c|c|c|c|c|} \hline 33 & & & & & \\ \hline 34 & & & Rate of & & & \\ 35 & Economy. & Probability & Return & Deviation: & & \\ \hline 36 & Which & of This & if This & Actual- & & Squared \\ \hline 37 & Affects & Demand & Demand & Expected & Deviation & Deviation \\ 38 & Demand & Oecurring & Decurs & Return & Squared & Prob. \\ \hline 39 & (1) & (2) & (3) & (4) & (5) & (6) \\ \hline 40 & Strong & 0.20 & 18% & & & \\ 441 & Normal & 0.30 & 10% & & & \\ \hline 42 & Weak & 0.50 & 2% & & & \\ \hline 43 & & & & & Variance = \\ \hline 44 & & & & Standard deviation = \\ \hline 5 & & & & & \end{tabular} 3. Calculate Coefficient of Variation A problem sometimes arises when comparing standard deviations of different securities. If they have different expected returns, you may not be able to compare them. The coefficient of yariation shovs risk per unit of expected 6 3. Calculate Coefficient of Variation A problem sometimes arises when comparing standard deviations of different securities. If they have different expected returns, you may not be able to compare them. The coefficient of wariation shows risk per unit of expected 7 returnStep by Step Solution
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