Question

Sandy is thinking about investing in Facebook and wants to calculate the future percentage she will...

Sandy is thinking about investing in Facebook and wants to calculate the future percentage she will earn on average. This best refers to which of the following?

risk aversion

reinvestment rate risk

standard deviation

realized rate of return

expected return

coefficient of variation

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

  

_______________________________

_______________________________

Sandy is thinking about investing in Facebook and wants to calculate the future percentage she will earn on average. This best refers to Expected Return as expected Return is the return which is expected from the future while realised return is historical return

Correct answer is Option 5. = Expected Return

NOTE: Do upvote the answer, if this was helpful.

NOTE: Please don't downvote directly. In case of query, I will solve it in comment section in no time.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The Simpson Corporation is thinking about investing in two new options, each option has a different...
The Simpson Corporation is thinking about investing in two new options, each option has a different level of risk that is associated with it. Option (A) is a new product and it is investing in a new market. Option (B) is an expansion of a well-established existing market. The risk-free rate is 2% and the expected rate of inflation is 3%. For a low risk investment Simpson Corporation expects 2%, but for a high risk investment Simpson Corporation expects 5%....
Calculate the coefficients of variation for the following stocks: Stock Expected return Standard deviation of return...
Calculate the coefficients of variation for the following stocks: Stock Expected return Standard deviation of return 1 0.065 0.29 2 0.04 0.17 3 0.15 0.24 1. What is the coefficient of variation for stock 1? 2.What is the coefficient of variation for stock 2? 3. What is the coefficient of variation for stock 3? 4. If you want to get the best risk-to-reward trade-off, which stock should you buy?
You are thinking about investing $5166 in your friend's landscaping business. Even though you know the...
You are thinking about investing $5166 in your friend's landscaping business. Even though you know the investment is risk and you can't be sure, you expect the investment to be worth $5712 next year. You notice that the rate for one year Treasury bills is 1%. However, you feel that other investments of equal risk to your friend's landscape business offer an expected return of 8% for the year.. What should you do?
Mallory Comer is thinking about investing in some residential income-producing property that she can purchase for...
Mallory Comer is thinking about investing in some residential income-producing property that she can purchase for $210,000. Mallory can either pay cash for the full amount of the property or put up $80,000 of her own money and borrow the remaining $130,000 at 7% interest. The property is expected to generate $15,000 per year after all expenses but before interest and income taxes. Assume that Mallory is in the 28% tax bracket. (Hint: Earnings before interest & taxes minusInterest expenses...
You are thinking about investing $4,892 in your​ friend's landscaping business. Even though you know the...
You are thinking about investing $4,892 in your​ friend's landscaping business. Even though you know the investment is risky and you​ can't be​ sure, you expect your investment to be worth $5,761 next year. You notice that the rate for​ one-year Treasury bills is 1 % ​However, you feel that other investments of equal risk to your​ friend's landscape business offer an expected return of 8 % for the year. What should you​ do? The present value of the return...
You are thinking about investing $ 5,058 in your​ friend's landscaping business. Even though you know...
You are thinking about investing $ 5,058 in your​ friend's landscaping business. Even though you know the investment is risky and you​ can't be​ sure, you expect your investment to be worth $ 5,787 next year. You notice that the rate for​ one-year Treasury bills is 1 %. However, you feel that other investments of equal risk to your​ friend's landscape business offer an expected return of 9 % for the year. What should you​ do?
A stock's returns have the following distribution: Demand for the Company's Products Probability of This Demand...
A stock's returns have the following distribution: Demand for the Company's Products Probability of This Demand Occurring Rate of Return If This Demand Occurs Weak 0.1 (50%) Below average 0.1 (10)    Average 0.4 13    Above average 0.3 26    Strong 0.1 65    1.0 Assume the risk-free rate is 4%. Calculate the stock's expected return, standard deviation, coefficient of variation, and Sharpe ratio. Do not round intermediate calculations. Round your answers to two decimal places. Stock's expected return:   % Standard deviation:   % Coefficient of...
A stock's returns have the following distribution: Demand for the Company's Products Probability of This Demand...
A stock's returns have the following distribution: Demand for the Company's Products Probability of This Demand Occurring Rate of Return If This Demand Occurs Weak 0.2 (36%) Below average 0.1 (7)    Average 0.3 18   Above average 0.2 27   Strong 0.2 48   1.0 Assume the risk-free rate is 3%. Calculate the stock's expected return, standard deviation, coefficient of variation, and Sharpe ratio. Do not round intermediate calculations. Round your answers to two decimal places. Stock's expected return:   % Standard deviation:   % Coefficient of...
A stock's returns have the following distribution: Demand for the Company's Products Probability of This Demand...
A stock's returns have the following distribution: Demand for the Company's Products Probability of This Demand Occurring Rate of Return If This Demand Occurs Weak 0.1 (38%) Below average 0.2 (15)    Average 0.3 12    Above average 0.3 36    Strong 0.1 61    1.0 Assume the risk-free rate is 2%. Calculate the stock's expected return, standard deviation, coefficient of variation, and Sharpe ratio. Do not round intermediate calculations. Round your answers to two decimal places. Stock's expected return: Standard deviation: Coefficient of...
A stock's returns have the following distribution: Demand for the Company's Products Probability of This Demand...
A stock's returns have the following distribution: Demand for the Company's Products Probability of This Demand Occurring Rate of Return If This Demand Occurs Weak 0.2 (44%) Below average 0.1 (6)    Average 0.3 13   Above average 0.1 37   Strong 0.3 64   1.0 Assume the risk-free rate is 2%. Calculate the stock's expected return, standard deviation, coefficient of variation, and Sharpe ratio. Do not round intermediate calculations. Round your answers to two decimal places. Stock's expected return:   % Standard deviation:   % Coefficient of...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT