Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Oct 06, 2024

You are considering an investment in an investment asset. The actual rate of return is 12%. Best possible outcome 12% Most likely outcome 70% Worst

You are considering an investment in an investment asset. The actual rate of return is 12%.

Best possible outcome 12%

Most likely outcome 70%

Worst case outcome 10%

Calculate the expected rate of return and the risk by formula.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access to Expert-Tailored Solutions

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

Step: 2

Step: 3

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

The House That Bogle Built How John Bogle And Vanguard Reinvented The Mutual Fund Industry

Authors: Lewis Braham

1st Edition

0071749063,0071751157

More Books

Students also viewed these Finance questions

Question

★★★★★

A pipe 0.60 m long and closed at one end is filled with an unknown gas. The third lowest harmonic frequency for the pipe is 750 Hz. (a) What is the speed of sound in the unknown gas? (b) What is the...

Answered: 1 week ago

Question

★★★★★

8,100 $ 3,200 34,000 1,800 5,000 The beginning balance of retained earnings was $28,000, net income is budgeted to be $11,500, and dividends are budgeted to be $4,800

Answered: 1 week ago

Question

★★★★★

3. Evaluate potential tools for implementing such a rule-based system and list the criteria that you would use in tool selection. Financial service is a major area for ES because the process involves...

Answered: 1 week ago

Question

★★★★★

Ignatenko's Custom Electronics (ICE) sells and installs complete security, computer, audio, and video systems for homes. On newly constructed homes it provides bids using time-and-material pricing....

Answered: 1 week ago

Question

★★★★★

7) A bond with a face value of 1,000 has a maturity of 10 years, and bi-monthly coupon payments of 10. The bond matures three years and 4 months from today and you have just received a coupon...

Answered: 1 week ago

Question

★★★★★

In a client / server model, a server is a computer on the network that provides information or services in response to client requests. a . dynamic b . static c . remote d . local CLEAR MY CHOICE

Answered: 1 week ago

Question

★★★★★

1 Obtain the compounding factor (A|F,4.09%,8) Question 2 Obtain the compounding factors of (A|F,6.17%,7) Question 3 Obtain the compounding factors of (A|P,12.36%,15) Question 4 Obtain the compounding...

Answered: 1 week ago

Question

★★★★★

Two people speak to a poorly performing football team. The first is the coach. He yells and uses profanity. The second is the owner. She calmly lays out consequences if the losing continues....

Answered: 1 week ago

Question

★★★★★

Consider the following data for April 2021 from Maddison Manufacturing Company, which makes silk pennants and uses the average process costing system. All direct materials are added at the beginning...

Answered: 1 week ago

Question

★★★★★

National Bank charges 6% effective annual rate on it's business loans. Assuming monthly compounding, calculate the annual percentage rate on this. enter as decimals and round to 4 decimals. National...

Answered: 1 week ago

Question

★★★★★

28. [0.5/4 Points] DETAILS PREVIOUS ANSWERS SCALCET8 6.3.002. Let S be the solid obtained by rotating the region shown in the figure about the y-axis. (Assume a = 4 and b = 2.) y = a sin(bx) 0 Sketch...

Answered: 1 week ago

Previous Question Next Question