Calculate the project's coefficient of variation. (Hint: Use the expected NPV.) Squared dev. Prob. NPV NPVI - E(NPV) Squared deviation times probability 0.24 S6,289.81 $5,829 SS 0.24 -$2,390.74 -S2,852 SS 0.32 -$1,233.33 -S1,694 SS 0.20 -S 400.00 -S861 SS. 1.00 $ 461.11 Variance S_ Standard deviation $ 5.87 6.52 7.25 7.97 8.77

Calculate the project's coefficient of variation. (Hint: Use the expected NPV.) Squared dev. Prob. NPV NPVI - E(NPV) Squared deviation times probability 0.24 S6,289.81 $5,829 SS 0.24 -$2,390.74 -S2,852 SS 0.32 -$1,233.33 -S1,694 SS 0.20 -S 400.00 -S861 SS. 1.00 $ 461.11 Variance S_ Standard deviation $ 5.87 6.52 7.25 7.97 8.77

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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Same setup as question 4. The book talks about finding the return of the minimum variance portfolio (MVP) using this template. What is that value for this setup? I.e., what is the return on the MVP under the assumptions of Question 4? About 7.519 About 8.32% About 9.28% About 6.80%
Calculate the project's coefficient of variation. (Hint: Use the expected NPV.) Squared dev. Prob. NPV NPVI - E(NPV) Squared deviation times probability 0.24 $6,289.81 $5,829 S$ 0.24 -$2.390.74 -$2,852 S$ 0.32-$1,233.33 -S1,694 $S 0.20 -$ 400.00 -$861 $S 100 $ 461.1i Variance $. Standard deviation S 5.87 6.52 7.25 7.97 8.77
Complete the table below using CAPM model Case Expected return RF RM Beta B 9% 8% 10% ?
pf = 200] . PA = [pf = 200 = 100 - = 100] - 20 & PB = Find the expected pay off assets A and B under probability measures P & P . Using Poi -Ē(P;) find the period 0, price of assets A and B rf Rf =1.05 and Beta=0.95238
M102LON/JAN 3. Security A has the following probability distribution of returns: Scenario Probability Return 1 0.1 15% 2 0.8 25% 0.1 35% What is the variance for Security A? a. 0.002 b. 0.020 С. 0.200 d. 0.300 3.
coefficient variation=.55 positive coeficient of correlation =.20 expected value=$1200 What does standard deviation equal?
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brary TE(18,3.25,-139.90,100) E F RATE Nper 18 Pmt 3.25 PV Fv Type -139.90 100 Defined Names Formula result = 0.008500381 Help on this function Function Arguments = 18 = = -139.9 = 100 = number 3.25 Formula Auditing ? = 0.008500381 Returns the interest rate per period of a loan or an investment. For example, use 6%/4 for quarterly payments at 6% APR. OK X Fv is the future value, or a cash balance you want to attain after the last payment is made. If omitted, uses Fv = 0. Cancel
Assuming that the rates of return associated with a given asset investment are normally distributed; that the expected return, r, is 18.7%; and that the coefficient of variation, CV, is 1.88, answer the following questions: a. Find the standard deviation of returns, sigma Subscript rσr. b. Calculate the range of expected return outcomes associated with the following probabilities of occurrence: (1) 68%, (2) 95%, (3) 99%.
Consider an investment with the following probability distribution: Probability: Payoff: 0.40 41.0% 0.40 -6.0 0.20 -20.0 Calculate the expected return. Do not round intermediate calculations. Round your answer to two decimal places. _____% Calculate the standard deviation. Do not round intermediate calculations. Round your answer to two decimal places. _____% Calculate the coefficient of variation. Do not round intermediate calculations. Round your answer to two decimal places. _____
Suppose two asset returns are described by a two factor model, n = 0% + 11 + 1.82 + e1 2 = -1% + 2/1 + 0.52 + e2 where the volatility of first factor is 30%, the volatility of the second factor is 10%, and the correlation between the two factors is 0.5. Suppose also that the volatilities of the error terms ej and ez are both 10%. What is the covariance of n and r2 ? (Nearest 0.0001).
None

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