You bought a stock of ABC Corp Limited, Inc. After a thorough analysis you deter

Question

You bought a stock of ABC Corp Limited, Inc. After a thorough analysis you determined it the expected annual return is 6% and the standard deviation is 3%. stocyrect, and assuming a normal distribution of return e probability that the stok I lose value in the next year?" 8407653,d/dx(secx)=secxtanx 8407661,Wtiidl one of the following will decrease .he net present value o increasing .he value of each of .he project's d.scoun.ed cash oving each of .he cash inflows forward .0 a sooner lime period decreasing the required discount rate increasingtheproject'sinitialcostattimezero H increasing the amount of the final cash inflow The internal rate of return is defined as the: maximum rate of return a firm expects to earn on a project. rate of return a project will generate if the project in financed solefy with internjl fund. discount rate that equates the net cash Inflows of a project to zero. I ount rate which causes the ne. present value of a project to equal zero 8407663,The authors of [63] discuss an outbreak of schistosomiasis in brant geese (Branta Bemicla Hrota). They conjecture that the translocation of the geese from their natural environment to a pond may have caused them to be exposed to parasites. Suppose that 5% of the geese in a particular region are infected with schistosomiasis. 5 geese are randomly selected from this region. Compute the expected number of geese that do not have a schistosomiasis infection. Calculate the probability that at least one of the geese does not have a schistosomiasis infection. 8407681,Determine the crystal log raphic direction and plane that would have the maximum LD and PD (there are multiple

Explanation / Answer

Stock will lose its value if it returns lower than 0%. Here we have:

R = 6%

SD= 3%

We first need to calculate coefficient of SD to have 0% return.

Return to lose value = R – a x SD

                0%          = 6% - a x 3%

                A = 2

Therefore coefficient of SD have to be 2 for investment to lose its value.

Now using empirical rule of normal curve, 95.45% of the values les between +- 2 standard deviation. Therefore, probability of losing value is:

Probability of losing value = 1-95.45%

                                                     =4.55%

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