You plan a certain project. There is a 35% chance that you will
lose $30,000, a...
You plan a certain project. There is a 35% chance that you will
lose $30,000, a 40% chance you will break even, and a 25% chance
that you will make $55,000. What is the expected value of your
investment? Do not round.
If
soda is packaged in bottles, the production cost per unit is 40
cents, the chance...
If
soda is packaged in bottles, the production cost per unit is 40
cents, the chance of an accident is 1 in 100,000, and the loss if
an accident occurs is $10,000. The expected accident loss per unit
is 10 cents, that is 1/100,000 x $10,000. If soda is packaged in
cans, the production cost is 43 cents, the chance of an accident is
1 in 200,000, the loss if an accident occurs is $4,000, and the
expected accident loss...
Part 1: Dallas Star Inc.'s stock has a 40% chance of producing a
5% return, and...
Part 1: Dallas Star Inc.'s stock has a 40% chance of producing a
5% return, and a 60% chance of producing a 12% return. What is the
firm's expected rate of return? What is the firm's Standard
Deviation? What is the firm's Coefficient of Variation?
Part 2: Calculate the required rate of return for Dallas Star
Inc., assuming that (1) investors expect a 1.5% rate of inflation
in the future, (2) the real risk-free rate is 2.0%, (3) expected
market...
Part 1: Dallas Star Inc.'s stock has a 40% chance of producing a
5% return, and...
Part 1: Dallas Star Inc.'s stock has a 40% chance of producing a
5% return, and a 60% chance of producing a 12% return. What is the
firm's expected rate of return? What is the firm's Standard
Deviation? What is the firm's Coefficient of Variation?
Part 2: Calculate the required rate of return for Dallas Star
Inc., assuming that (1) investors expect a 1.5% rate of inflation
in the future, (2) the real risk-free rate is 2.0%, (3) expected
market...
A venture capitalist, willing to invest $1,000,000, has three
investments to choose from. The first investment,...
A venture capitalist, willing to invest $1,000,000, has three
investments to choose from. The first investment, a software
company, has a 10% chance of returning $5,000,000 profit, a 30%
chance of returning $1,000,000 profit, and a 60% chance of losing
the million dollars. The second company, a hardware company, has a
20% chance of returning $3,000,000 profit, a 40% chance of
returning $1,000,000 profit, and a 40% chance of losing the million
dollars. The third company, a biotech firm, has...
Creating a discrete probability distribution: A venture
capitalist, willing to invest $1,000,000, has three investments to...
Creating a discrete probability distribution: A venture
capitalist, willing to invest $1,000,000, has three investments to
choose from. The first investment, a social media company, has a
20% chance of returning $7,000,000 profit, a 30% chance of
returning no profit, and a 50% chance of losing the million
dollars. The second company, an advertising firm has a 10% chance
of returning $3,000,000 profit, a 60% chance of returning a
$2,000,000 profit, and a 30% chance of losing the million dollars....