5Problem 13-6 (Algo) Coefficient of variation [LO13-1]Possible outcomes for three investment alternatives and their probabilities of occurrence are given next.FailureAcceptableeBookSuccessfulHintAlternative 1Outcomes30ProbabilityOutcomesAlternative 2ProbabilityAlternative 3Outcomes Probability0.20800.40900.40601200.201400.202250.400.602100.403800.20Using the coefficient of variation, rank the three alternatives in terms of risk from lowest to highest.Note: Do not round intermediate calculations. Round your answers to 3 decimal places.Coefficient ofVariationRankPrintAlternative 1Alternative 2Alternative 3References

Step 1:Given: Alternative 1Alternative 2Alternative 3…

Answered: 5 Problem 13-6 (Algo) Coefficient of…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Problem 13-6 (Algo) Coefficient of variation [LO13-1) Possible outcomes for three investment alternatives and their probabilities of occurrence are given next. Alternative 1 Alternative 2 Outcomes Probability Outcomes Probability 0.20 0.40 0.40 Failure Acceptable. Successful Alternative 1 Alternative 2 Alternative 31 50 80 120 Coefficient of Variation 8.20 0.40 0.40 Rank 98 185 205 Using the coefficient of variation, rank the three alternatives in terms of risk from lowest to highest. Note: Do not round intermediate calculations. Round your answers to 3 decimal places. 2 Drau Alternative 3 Outcomes 65 320 420 5 of 9 Probability 8.20 0.60 0.20 # Next >
Question 4 (4 points) ◄ Listen The IRR of normal Project X is greater than the IRR of normal Project Y, and both IRRs are greater than zero. Also, the NPV of X is greater than the NPV of Y at the cost of capital. If the two projects are mutually exclusive, Project X should definitely be selected, and the investment made, provided we have confidence in the data. Put another way, it is impossible to draw NPV profiles that would suggest not accepting Project X. True False
39. Consider the following information. Assuming this represents the Population. Investment X 4% -10% 8% 8 Year 1 2 3 14% Investment Y -6% 8% 12% -2% Risk Free Rate: 2% The Covariance of Investment X and Investment Y is (Hint: Covariance = 1/nΣ(xi — Xavg)(yi - Yavg) A. -32.60 B. -21.00 C. +144.82 D. -103.50 E. +114.34
Two investments have the following pattern of expected returns: Investnent A Year 1 $5, 100 Year 2 $10,100 Year 3 Year 4 Year 4 (Sale) $121,000 STCF $12,100 $15,100 Investment B Year 1 $2,100 Year 2 $4,100 Year 3 $1,100 Year 4 Year 4 (Sale) $181,000 BTCF $5,100 Investment A requires an outlay of $111,000 and Investment B requires an outlay of $121,000. Required: a. What is the BTIRR on each investment? b. If the BTIRR were partitioned based on BTCF, and BTCF, what proportions of the BTIRR would be represented by each? c. Which investment would be preferable?
9.36 The fouT mutuzlly exclusive alternatives below are being compared using the B/C method. What altemative, if any, should be selected? Initial Investment, Incremental B/C When Compared With Altemative Altemative S Millions BC Ratio K L 20 0.40 --- 25 33 0.96 122 K 1.42 2.14 --- 0.72 0.80 0.08-- 45 0.39 I. Activate Winde PC settings to DFocus SAN FRACISCO.CA
use attachment to answer questions This question relates to Diagram 1 from the 9.4 diagrams, which shows the Security Market Line. What is the expected return on the market? Select one: a. 20% b. 10% c. 15% d. 5%
please give me answer dont give answer in image format
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Please answer fast i give upvote
Option A В -А C-B C-A -4500 -7500 -9000 -3000 -1500 -4500 1500 3000 3400 1500 400 1900 2. 2000 3000 3740 1000 740 1740 3 2500 3000 4114 50 1114 1614 8/C or AB/C 0.91 1.18 1.07 1.11 1.31 1.04 Your accountant has provided you with the table below comparing three alternatives using benefit-cost ratio analysis and an MARR of 6%, the best option is: Option A Option B O Option C There is not enough information provided. Year

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