1. From the information below, compute the average annual return, the variance, standard deviation, and coefficient of variation for each asset.ASSET ANNUAL RETURNSA 5%, 10%, 15%, 4%B 2 6%, 20%, 2%, 2 5%, 10%C 12%, 15%, 17%D 10%, 2 10%, 20%, 2 15%, 8%, 2 7%2. Based upon your answers to question 1, which asset appears riskiest based on standard deviation? Based on coefficient of variation?7. Find the real return, nominal after-tax return, and real after-tax return on the following:STOCK NOMINAL RETURN INFLATION TAX RATEX 13.5% 5% 15%Y 8.7% 4.7% 25%Z 5.2% 2.5% 28% 9. Using the information below, compute the percentage returns for the following securities:SECURITYPRICETODAYRoadRunner $20.05StockWiley Coyote $33.42stockAcme longtermPRICE ONE DIVIDENDS INTERESTYEAR AGO RECEIVED RECEIVED$18.67$0.50$45.79$1.10bondsAcme shorttermbondsXlingshotStock$1,015.38$991.78$996.63$989.84$5.43 $3.45$100.00$45.75$0.0210. Given her evaluation of current economic conditions, Ima Nutt believes there is a 20 percent probability of recession, a 50 percent chance of continued steady growth, and a 30 percent probability of infl ationary growth. For each possibility, Ima has developed an interest rate forecast for long-term Treasury bond interest rates:ECONOMIC INTEREST RATEFORECAST FORECASTRecession 6 percentConstant growth 9 percentInfl ation 14 percenta. What is the expected interest rate under Imaâs forecast?b. What is the variance and standard deviation of Imaâs interest rate forecast?c. What is the coeffi cient of variation of Imaâs interest rate forecast?d. If the current long-term Treasury bond interest rate is 8 percent, should Ima consider purchasing a Treasury bond? Why or why not?11. Ima is considering a purchase of Wallnut Company stock. Using the same scenarios and probabilities as in problem 10, she estimates Wallnutâs return is 2 5 percent in a recession, 20 percent in constant growth, and 10 percent in infl ation.a. What is Imaâs expected return forecast for Wallnut stock?b. What is the standard deviation of the forecast?c. If Wallnutâs current price is $20 per share and Wallnut is expected to pay a dividend of $0.80 per share next year, what price will Ima expect Wallnut to sell for in one year?
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more