Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

What is the probability distribution of returns estimated for a proposed project that involves a new ultrasound machine state of the. Probability of. economy. Occurrence

What is the probability distribution of returns estimated for a proposed project that involves a new ultrasound machine

state of the. Probability of.

economy. Occurrence Rate of return

very poor. 0.1. -10%

poor. 0.2. 0.0

average. 0.4. 10.0

good. 0.2. 20.0

very good. 0.1. 30.0

a. What is the expected rate of return on the project

b. What is the project's standard deviation of returns, coefficient of variation (cv) of returns?

c. What type of risk do the standard deviation and CV measure?

d.in what situation is this risk relevant?

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

Technical Analysis The Complete Resource For Financial Market Technicians

Authors: Charles Kirkpatrick, Julie Dahlquist

3rd Edition

0134137043, 978-0134137049

More Books

Students also viewed these Finance questions

Question

What is management growth? What are its factors

Answered: 1 week ago

Question

5. How can I help others in the network achieve their goals?

Answered: 1 week ago