Terry Dactel is considering the purchase of an asset having the following cash flows (in 000's): ...
Terry Dactel is considering the purchase of an asset having the following cash flows (in 000's):
CF Prob.
5 20%
12 30%
18 30%
20 20%
What is the asset’s standard deviation (in 000's)?
Group of answer choices
A.$4.3
B.$5.4
C.$6.8
D.$9.1
Homework Answers
Ans B.$5.4
| Probability (P) | CF (Y) | (P * Y ) | P * (Y -Average Return of Y)^2 | |
| 20% | 5 | 1.00 | 16.20 | |
| 30% | 12 | 3.60 | 1.20 | |
| 30% | 18 | 5.40 | 4.80 | |
| 20% | 20 | 4.00 | 7.20 | |
| TOTAL | 14.00 | 29.40 | ||
| Expected Return = | (P * Y) | |||
| 14.00% | ||||
| VARIANCE = | P * (Y -Average Return of Y)^2 | |||
| 29.4000 | ||||
| Standard Deviation = | Square root of (P * (Y -Average Return of Y)^2) | |||
| Square root of 41.40 | ||||
| 5.4 |
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Terry Dactel is considering the purchase of an asset having the
following cash flows (in 000's): ...
I need help I got 5.77 :( Terry Dactel is considering the purchase of an asset...
I need help I got 5.77 :(
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I need help I got 5.77 :(
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thats all the info provided to me
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