You have been given this probability distribution for return for Cheese, Inc. stock: State of Economy Probability Return Boom 0.20 20% Normal 0.45 10% Recession 0.35 2% Assuming that the expected return on Cheese's stock is 9.2%, what is the standard deviation of these returns?单项选择题

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Suppose your expectations regarding the stock price are as follows: State of the Market Probability Ending Price Holding Period Return Boom 0.28 $140 -18.5% Normal Growth 0.40 $110 10.0% Recession 0.32 $80 26.5% Compute the standard deviation of the holding period return on the stock. Click to Access Spreadsheet Q04.xlsx Download Q04.xlsx

RTF stock is expected to return 10.6 percent if the economy booms and only 4.2 percent if the economy goes into a recessionary period. The probability of a boom is 55 percent while the probability of a recession is 45 percent. What is the standard deviation of the returns on RTF stock? A) 4.03 percent B) 2.97 percent C) 3.18 percent D) 3.69 percent E) 5.27 percent

Pedersen Industries wants to initiate a new project. To facilitate the project, an increase in cash of $20,000 will be required and the firm needs to build up $15,000 in inventory. The firm is expecting revenues of $500,000 per year and cost of goods sold (COGS) of $400,000. Pedersen Industries is expecting that Accounts Receivables (AR) will account for 5% of annual sales and Accounts Payables (AP) will account for 10% of COGS. All these changes will occur in year t=1. ​ What is the incremental cash flow effect from the change in Net Working Capital (NWC) in year 1?

When evaluating a new project, firms should include in the projected cash flows all of the following EXCEPT:

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