Question

Possible outcomes for three investment alternatives and their probabilities of occurrence are given next. Failure Acceptable

0 0
Add a comment Improve this question Transcribed image text
Answer #1

H - K 27 Coefficient of variation Rank 0.293 1 =F8/C6 28 Alternative 1 Standard deviation-Mean 29 30 2 31 Alternative 2 Stand

*Please rate thumbs up

Add a comment
Know the answer?
Add Answer to:
Possible outcomes for three investment alternatives and their probabilities of occurrence are given next. Failure Acceptable...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Possible outcomes for three investment alternatives and their probabilities of occurrence are given below. Alternative 1...

    Possible outcomes for three investment alternatives and their probabilities of occurrence are given below. Alternative 1 Alternative 2 Alternative 3 Outcomes Probability Outcomes Probability Outcomes Probability   Failure $ 30 0.10 $ 80 0.20 $ 110 0.30   Acceptable 70 0.50 195 0.40 350 0.50   Successful 105 0.40 250 0.40 400 0.20 Rank the three alternatives in terms of least risk to most risk. (Do not round intermediate calculations. Round the final answers to 3 decimal places.) Rank Coefficient of Variation (Click...

  • Possible outcomes for three investment alternatives and their probabilities of occurrence are given next.           Alternative...

    Possible outcomes for three investment alternatives and their probabilities of occurrence are given next.           Alternative 1 Alternative 2 Alternative 3 Outcomes Probability Outcomes Probability Outcomes Probability   Failure 50 .2 90 .3 95 .2   Acceptable 90 .4 190 .3 215 .6   Successful 135 .4 225 .4 380 .2    Using the coefficient of variation, rank the three alternatives in terms of risk from lowest to highest. (Do not round intermediate calculations. Round your answers to 3 decimal places.)   

  • Problem 13-13 (modified) Possible outcomes for three investment alternatives and their probabilities of occurrence are given...

    Problem 13-13 (modified) Possible outcomes for three investment alternatives and their probabilities of occurrence are given below. Failure Acceptable Successful Alternative 1 Outcomes Probability $ 60 @.40 90 0.20 120 0.40 Alternative 2 Outcomes Probability $ 70 @.20 165 0.40 250 0.40 Alternative 3 Outcomes Probability $ 70 0.30 220 0.50 395 0.29 Rank the three alternatives in terms of least risk to most risk. (Do not round intermediate calculations. Round the final answers to 3 decimal places.) Coefficient of...

  • Alternate investment outcomes

    ossible outcomes for three investment alternatives and their probabilities of occurrence are given below. Alternative 1Alternative 2Alternative 3OutcomesProbabilityOutcomesProbabilityOutcomesProbability  Failure$600.40$700.20$700.30  Acceptable900.201650.402200.50  Successful1200.402500.403950.20 Rank the three alternatives in terms of least risk to most risk. (Do not round intermediate calculations. Round the final answers to 3 decimal places.) Coefficient ofVariationAlternative 1Alternative 2Alternative 3 AlternativeLeast risky (Click to select)  Alternative 2  Alternative 1  Alternative 3 | (Click to select)  Alternative 2  Alternative 1  Alternative 3 Most risky (Click to select)  Alternative 2  Alternative 1  Alternative 3 

  • Five investment alternatives have the following returns and standard deviations of returns. Alternatives A B C...

    Five investment alternatives have the following returns and standard deviations of returns. Alternatives A B C D E Returns: Expected Value $ 1,350 1,180 7,700 1,810 63,300 Standard Deviation $ 500 1,470 2,100 690 14,700 Calculate the coefficient of variation and rank the five alternatives from the lowest risk to the highest risk by using the coefficient of variation. (Round your answers to 3 decimal places.) Alternatives Coefficient of Variation Rank A B с D E

  • Given the returns and probabilities for the three possible states listed below, calculate the covariance between...

    Given the returns and probabilities for the three possible states listed below, calculate the covariance between the returns of Stock A and Stock B. For convenience, assume that the expected returns of Stock A and Stock B are 6.20 percent and 10.80 percent, respectively. Your answer is incorrect. Try again Given the returns and probabilities for the three possible states listed below, calculate the covariance between the returns of Stock A and Stock B. For convenience, assume that the expected...

  • An analyst thinks that next year there is a 20% chance that the world economy will...

    An analyst thinks that next year there is a 20% chance that the world economy will be good, a 50% chance that it will be neutral, and a 30% chance that it will be poor. She also predicts probabilities that the performance of a start-up firm, Creative Ideas, will be good. neutral, or poor for each of the economic states of the world economy.The following table presents probabilities for three states of the world economy and the corresponding conditional probabilities...

  • Question 2 (1 point) Given the returns and probabilities for the three possible states listed here,...

    Question 2 (1 point) Given the returns and probabilities for the three possible states listed here, calculate the covariance between the returns of Stock A and Stock B. For convenience, assume that the expected returns of Stock A and Stock B are 0.10 and 0.17, respectively. (Round your answer to 4 decimal places. For example .1244) Probability Return(A) Return(B) Good 0.35 0.30 0.50 OK 0.50 0.10 0.10 Poor 0.15 -0.25 -0.30 Your Answer: Question 2 options: Answer Question 3 (1...

  • PART III RISK AND RETURN Cell for "2" State of the Economy Worst case Poor case...

    PART III RISK AND RETURN Cell for "2" State of the Economy Worst case Poor case Most likely Good case Best case Return on Probability Treasury of Bond in Occurrence Upcoming Year 0.10 -0.34 0.20 -0.04 0.40 0.06 0.20 0.16 0.10 0.26 1.00 0.04000 0.02360 0.15362 3.84057 Expected return Variance STDEV CV You were provided with the above information about T-bills. Answer the following questions in the paces provided: 1. What does the expected return represent, and how is it...

  • the second image is part of the question, please answer as much of the question you...

    the second image is part of the question, please answer as much of the question you can. The quality control Inspector of a production plant will reject a batch of syringes of two or more defective syringes are found in a random sample of syringes taken from the batch. Suppose the batch contains 5 defective syringes. AUSE SALT (a) Make a histogram showing the probabilities of 0, 1, 2, 3, and defective syringe in a random sample of Syringes 0.70...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT