Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. an investment manager analyses a security and dete

An investment manager analyses a security and determines that it has three possible return outcomes...

90.2K

Verified Solution

Question

Finance

An investment manager analyses a security and determines that it has three possible return outcomes over the next 12 months; -5.7%, 9.25% and 15.6%, for which she has assigned the following probabilities of occurring; 20%, 65% and 15% respectively. If the security is presently priced at $104.16, to what price does the manager expect to stock to be in 12 months time?

$111.67

$66.49

7.21%

$110.81

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

The Department of Agriculture has a budget d farmers Without a subsidy it is estimated...

Basic Math
Q

You run a small furniture business. You sign a deal with a customer to deliver up...

Basic Math
Q

Which scenario will result in the greatest decrease in energy for the system? (a) The system releases...

Chemistry
Q

Many people in the small town of Econville have complained that there is no park for...

Economics
Q

Sex Education and Teenage Pregnancy Santrock (2016) mentions in his text that the United States has one...

Psychology
Q

Does the average Presbyterian donate more than the average Catholic in church on Sundays? The 44...

Basic Math
Q

Please discuss the significance of Non Verbal Behavior. How it can block or ease communication in...

General Management
Q

What is the exponential form of the logarithmic equation 5 logo 9 0 59049 Enter...

Algebra
Q

3 Wehrs Corporation has received a request for a special order of 8,800...

Accounting
Q

A company manufactures household items sold at trade shows. The items, classified as either Tables...

Accounting
Q

Joy Ltd finalised their financial statements for the year ended 31 March 2020 and authorised...

Accounting
Q

Willie Nelson's Boots uses the conventional retail method to estimate ending inventory. Cost data for...

Accounting