### Probability & Expected Return

How is the probability and expected return calculated on a single stock?

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How is the probability and expected return calculated on a single stock?

Questions answered, just need to verify if answers are correct. Indicate whether the sentence or statement is True or False. T 1. A trend is a gradual, long-term, up or down movement of demand. F 2. Time series methods are the most common type of forecasting method for the long-term strategic planning

The economics department has determined that there is a 30% chance that economy will be strong. Further inquiries reveal that if the stock market is up over the next three months, there is a 50% chance that the economy will be strong, bit if it is down, the chances are only 20%. I made a probabilities table:

Dividend Computations Reiner Wholesale Merchandise had 20,000 shares of 5%, $20 par value preferred stock and 15,000 shares of $25 par value common stock outstanding throughout 2003. These data apply to each of the independent situations below. 1. Assuming that total dividends declared in 2003 were $35,000 and that the pre

PART I You will be a member of the newly-formed project staff team. This team will need to realize process gains within its first three months. You want to help, not hinder, the team's progress, so you decide to do some research upfront. You bring up your challenge at your managerial networking meeting. You pose the following q

The network representation for a given project is shown below: See attached sheet Estimated activity durations in days (te) , standard deviation for each activity (), the number of days each activity can be crashed by and crash cost per day are as follows: See attached document for data. a) Find out and explici

Using the spreadsheet document labeled Soundsleep Funds Data, generate the Jensen's alpha and Sharpe ratio for each fund. Next, create two sets of rankings-one based on each of these measures. Note that an example, as seen in the Fast Track Growth Fund Update, has been included for your review. This should assist you with your c

Suppose a firm evaluates the productivity of the three shifts of workers who work in their factory. Each shift's performance is measured on the amount of output that is produced during the shift - day, evening, or swing shift. Based on these ratings presented in the table below, produce an ANOVA analysis in Excel (see the exam

1) JJ Industries currently has a capital structure that consists of 75 percent common equity and 25 percent debt. The risk-free rate is 5 percent. The market risk premium is 6 percent. JJ's common stock has a beta of 1.2. JJ has 20 year bonds outstanding with an annual coupon rate of 12 percent and a face value of $1,000. The bo

(See attached file for full problem description) --- 1) Suppose the following table shows the number of colds 7 different people got during the typical cold season based on the number of times they washed they washed their hands per day during the cold season. Calculate the correlation coefficient and interpret its meaning

The best method for data input would be a keyboard. The reason the keyboard would be best is because... The output device for device would be a USB connection to a desktop computer. I did not see this on the reading but felt this would be the best. By using a USD port (which happens to be one of fastest ways to transfer data

Excel spreadsheet you provided I calculated the correlation coefficient for data at .891. Can you please use this data and Excel spreadsheet and provide the calculations to arrive at the correlation coefficient of .891? In addition, what would the correlation coefficient of .891 tell us about the data ?

A survey of top executives revealed that 35 percent of them regularly read Time magazine, 20 percent read Newsweek, and 40 percent read U.S. News and World Report. Ten percent read both Time and U.S. News and World Report. a. What is the probability that a particular top executive reads either Time or U.S. News and World Repo

10. The Operating and Cash cycles: Consider the following financial statement information for the Glory Road company: Item Beginning Ending Inventory $1,543 $1,669 Accounts receivable 4,418

Profitable fruitcakes. Sharon's revenue R (in dollars) on the sale of x fruitcakes is determined by the formula R = 50x - x2. Her cost C (in dollars) for producing x fruitcakes is given by the formula C = 2x + 40. For what values of x is Sharon's profit positive? (Profit = revenue - cost)

Part 1. The following data (in thousands of dollars) have been taken from the accounting records of Karmana Corporation for the just completed year. (This company puts all manufacturing overhead into work in process during the month.) Sales $950 Raw materials inventory, beginning $10 Raw materials inventory, end

Jim (Mei) is considering pursuing an MS in Information Systems degree. He has applied to two different universities. The acceptance rate for applicants with similar qualifications is 20% for University X and 45% for University Y. What is the probability that Jim (Mei) will be accepted by at least one of the two universities?

Consider the stock of Davidson Company, which will pay an annual dividend of $2 one year from today. The dividend will grow at a constant annual rate of 5 percent, forever. The market requires a 12 percent return on the company's stock. a. What is the current price of a share of the stock? b. What will the stock price be

Please help with the following problem. Risk and Return. True or False? Explain or qualify as necessary. a. Investors demand higher expected rates of return on stocks with more variable rates of return. b. The capital asset pricing model predicts that a security with a beta of zero will provide an expected return of ze

E1-23 Hootie and the Blow Fish, Inc., organized in 2002, has the following transactions related to intangible assets. 1/2/02 Purchased patent (7-year life) $490,000 4/1/02 Goodwill purchased (indefinite life) 360,000 7/1/02 10-year franchise; expiration date 7/1/2012 420,000 9/1/02 Research and development costs 185,000 Ins

P2-3A Grant Advertising Agency Inc. was organized in January 2002. Presented below are both the adjusted and unadjusted trial balances as of December 31, 2002. See attached file for full problem description.

One of your small business clients, Dr. Leo Krusack, has opened a dental practice. He has come to you for help in organizing his accounts. Help him classify each of the following business transactions. Then prepare an income statement, a balance sheet, and an owner's equity statement for him. One June 1st, Leo opened an acco

It is now July 31st. You are continuing to advise Dr. Leo Krusack on basic accounting procedures. His practice had the following transactions during July. On July 1st, he paid out $1,200 in office rent for the month of July. He purchased a new dental chair for $1,300 cash on July 6th. On July 10th, he purchased $2,

Bailey's Leisure Equipment uses a traditional overhead allocation scheme in its manufacturing plant. The company produces three products: umbrellas, sunshades, and lawn chairs. For 1994, the company incurred $1,000,000 of manufacturing overhead costs and produced 100,000 umbrellas, 10,000 sunshades, and 30,000 lawn chairs. Th

Jose is going to invest up to $23,000 in a savings account, bonds, or both. He wants to invest from $3000 to $13,000 in the savings account at 4% interest. The bonds will be insured up to $17,000, so Jose doesn't want to invest more than that amount in bonds which will earn 4 1/2%. What will be the maximum amount of interest tha

As an illustration, we will suppose that the Juarez ski plant can actually operate at as much as 150% of its stated capacity during the August - November period by placing its workforce on over-time. We will also assume that the company policy is to use this plant exclusively to service the Phoenix warehouse. Moreover, we wil

Complete the vertical and horizontal analysis of the comperative balance sheet for Miller's Model Ships. (See attached file for full problem description)

3.The following is a forecast of sales and purchases by American Food Products for the first four months of 2006. month1 month2 month3 month4 credit sales 250,000.00 285,000.00 265,000.00 240,000.00 credit purchases 120,000.00

Page 571 problem 62 62. Profitable fruitcake. Sharon's Revenue R (in dollars) on the sale of x fruitcake is determined by the formula R=50x-x^2. Her cost C(in dollars) for producing x fruitcakes is given by the formula C = 2x+40. For what values of x is Sharon's profit positive? (Profit = revenue-cost.) Page 576 problem

Balance Sheet and Income Statement Ratios Calculate all key financial ratios (below) for the financial statement on sheet 2 1 Quick Ratio [(Current Assets-Inventory) / Current Liabilities] 2 Current Ratio [Current Assets / Current Liabilities] 3 Total Liabilities to Net Worth 4 Fixed Assets to Net Worth 5 Income to Ne