. The expected return. The standard deviation of the return. lote: Make sure to round all intermediate calculations to at least five decimal places. Graph/chart ity (%) 35 30- 25- 20- Q O 2

Q: What is Project A’s modified internal rate of return (MIRR)? Use 5 decimal places for the factors…

A: Modified internal rate of return is the rate at which the value of latest cash inflow is equal to…

Q: The geometric average of -12%, 20%, and 27% is 10.50" for 10.5%) (Type your answer as a percent, two…

A: We need to use geometric average return equation below.Geometric average =…

Q: Consider the following information: Calculate the expected return. (Do not round intermediate…

A: Step 1: What is the expected return?The Expected Return measures the anticipated return on an…

Q: ven that i = 0.05, calculate the present value of the following series of payments: Time 0 1 2…

A: Present value is the equivalent value of the future cash flow based on the time value of money and…

Q: Consider the following data: x 6 7 8 9 10 P(X = x) 0.1 0.3 0.1 0.1 0.4 Step 1 of 5: Find the…

A: The objective of the question is to calculate the expected value of a random variable X. The…

Q: What will be the account's valu if the interest is compounded r 4000(1+(0.07)/(12))^(12(10))

A: Here, PV is 4000 Interest Rate is 7% Compounding Period is Monthly Time Period is 10 years

Q: What is the forecast for period 66, if period 66 is a Q17 (please round your answer to 1 decimal…

A: Regression is a statistical method that explains whether there is any link between a dependent and…

Q: Calculate the covariance of the following ex-ante returns. Express your answer as a decimal with…

A: Introduction:Let us denote P=ProbabilityReturn A=XReturn B=YFormula to be…

Q: $1.20 1.30 0.8 0.9 1.1 Pulangan Geometrik = _% Geometric return= _%

A: To determine the geometric mean, we first need to compute the change in price using the formula…

Q: The Elberta Fruit Farm of Ontario has always hired transient workers to pick its annual cherry crop.…

A: Annual cost saving is the total savings less additional costSimple rate of return is computed as…

Q: Use the following returns for X and Y. Returns Year X Y 1. 21.8% 26.4% 2. -16.8 -3.8 3. 9.8 28.4 4.…

A: Here, Note: Here, we are considering the given data as a sample data, hence applying the formula of…

Q: Consider the following data: x -7 -6 -5 -4 -3 P(X = x) 0.2 0.1 0.2 0.1 0.4 Step 1 of 5: Find the…

A: The objective of the question is to calculate the expected value of a random variable X. The…

Q: Please fill out the table below. Use your estimates from the table to answer the multiple-choice…

A: Calculations are done using excel. Note, answer closest to the calculation are chosen from the…

Q: X SHOWN CASH-FIOW DIAGRAMS USE:i=9%

A: Present value is the equivalent value today which will give the same cash flow in the future and…

Q: 5. Change the following linear gradient series into a geometric gradient series by determining the…

A: A linear gradient series annuity needs to be converted into a geometric gradient series annuity. The…

Q: Time left 1:23:23 tate probability Return on A RETURN ONB POOR 40% |-0.06 -0.09 NORMAL 35% 0.16 0.14…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: 3 Use the future value formula, S = P(1 + rt), to compute the future value of $2526.00 over three…

A: P = 2526 r = 9.75% p.a. t = 3/12  = 0.25

Q: ind each Poisson probability, using a mean arrival rate of 10 arrivals per hour.   (a) Seven…

A: Solution- Probability distribution of a Poisson random variable X  representing the number of…

Q: Calculate the geometric mean return for the following data set: (Negative value should be indicated…

A: -14% = -0.14,15% = 0.15,-16% = -0.16,13.7% = 0.137,14.1% = 0.141.

Q: You have been depositing money into an account yearly based on the following investment amounts,…

A: Amount of Investment Rate Time FVA  Value at the end of the period (A) (B) (C)  (D) (A * D)…

Q: Find the APR using the formula APR= 2nr/n+1 when n= 36 and r= 8%

A: Given: APR=2nr/(n+1) n=36 r=8% To find: APR

Q: - Select your answer - What type of pattern exists in the data? - Select your answer b. Develop the…

A:

Q: Find the APR using the formula APR= 2nr/n+1 when n= 38 and r= 8%

A: Here, n is 38 r is 8%

Q: TE(18,3.25,-139.90,100) E F RATE Nper 18 Pmt 3.25 PV -139.90 Fv 100 Type Function Arguments = 18 =…

A: The interest rate per period, often denoted as "I/Y" (Interest per Year), represents the rate at…

Q: A company reports the following: Total Assets $390,000 Total Liabilities 140,000 Total Stockholders'…

A: Formula: Debt ratio = ( Total Liabilities / Total Assets ) x 100

Q: lculate the standard deviation of the following returns.  Year       Return 1             0.01 2…

A: Standard deviation is square of the deviations from the mean and it shows the volatility o stock and…

Q: Calculate the arithmetic average of the following returns. Year Return 1 0.12 20.16 3 0.24 4 0.13…

A: The arithmetic average of the return refers to the simple average of the given return for…

Q: Cullumber Corporation is about to issue $1.120,000 of 9-year bonds that pay a 5% annual interest…

A: Bonds refers to the loan from the investor to the borrower such as the government or the company and…

Q: Find crossover rate..round upto 6 decimal places. Project A project B-1000-500 950 550 500 350…

A: Project AProject B-$1,000-$500$950$550$500$350

Q: Q 01: (a) Assume D0 = Rs. 5.50, g is a -7%, and rs = 13%. Find the P^,? (b) Suppose g = 0 for t = 1…

A: Dividend Discounted Model (DDM) is a financial approach that helps in computing the price of the…

Q: 6. What would 3, 457, 123 round to if you were to round it to the nearest hundred thousand? a 3.…

A: To rounding off the if the value of a digit before rounding off digit is 5 or more, the rounding off…

Risk and return

Before understanding the concept of Risk and Return in Financial Management, understanding the two-concept Risk and return individually is necessary. 

Capital Asset Pricing Model

Capital asset pricing model, also known as CAPM, shows the relationship between the expected return of the investment and the market at risk. This concept is basically used particularly in the case of stocks or shares. It is also used across finance for pricing assets that have higher risk identity and for evaluating the expected returns for the assets given the risk of those assets and also the cost of capital.