garrett9978 garrett9978

19-04-2024
Business

Answered

Company AAA is a new company. In its balance sheet, it has only a project which lasts for one year. The project's cost is $ 50 million occurring now (To). The cash flow of the project in one year (T1) has the following joint distribution with the market portfolio. Market Probability Cash flow Next Market Net Return Scenario Year of (%) AAA's Project Good 0.75 $ 80 million 30 Bad 0.25 $ 40 million 20 Also, the risk-free interest rate is 5%. Find the risk-neutral probability for the "Good" state and "Bad" state. Based on the risk-neutral probability, calculate the present value (PV) of the project.

Answer :

Other Questions

The group of disorders that all have fear at the core are classified as ______ disorders.O anxietyO schizophreniaO dissociativeO personalityO mood

Does Oxford University have a particle accelerator?

During a recent counselling session, it was identified that Kyle exemplified passionate feelings towards Kendra and desired to stay committed in their relations

A good capital budgeting program requires that a number of steps be taken in the decision-making process. The first step is the explanation of data. a. Trueb. F

Under both perfect competition and monopoly. a firm:A. Faces a perfectly elastic demand curve. B. Sells at a price equal to the minimum average total cost.C. Se

Structural functionalism and conflict theory are both designed to explain how social order is maintained and how institutions interact with one another to produ

Given the expression [tex]45 \cdot(1-0.60)^{2x}[/tex], determine the percent rate of change.A. 40%B. 16%C. 60%D. 84%

Religious ways of knowing:A. Are only found in Western societies.B. Are of no interest to anthropologists.C. Are called belief and rely on trust and faith.D. Re

4. Un teatro vendió todas las entradas disponibles para el estreno de una obra. El lunes vendió [tex]$\frac{5}{9}$[/tex] del total, el martes [tex]$\frac{5}{18}

Decide whether the equation is conditional, an identity, or a contradiction. Give the solution set.[tex]\[ 2x + 2(x - 4) = 5x + 1 \][/tex]Is the equation a cond

I've got some homework about rendering isometric letters...I can remember what colours the main parts are but I can't remember what colour the other parts are (

Can someone read my essay and say what I have to improve also tell me what I should put for my conclusion. Thank you! “Love Exists” True love is when you are co

1) What is clergy?2) Why do you think people left land to the church when they died?3) What is a religious order?4) Why do you think monks and friars owned no p

If y varies jointly as x and z and y = 60 when x = 3 and z = 4, find y when x is 6 and z is 8. Can aanyone walk me through how to do this?

Suppose that the function f ( x ) = 2x + 12 represents the cost to rent x movies amonth from an internet movie club. Makayla now has $10. How many more dollars

Which of the following accurately describes the white army?a) hoped to create a military dictatorshipb) wanted to redistribute landc) was headed by leon trotsky

Can someone read my essay and say what I have to improve also tell me what I should put for my conclusion. Thank you! “Love Exists” True

What's the 7th number of pi ???

the pressure of the earth's atmosphere becomes what as you move away from earth's surface?

Both multiparty systems and two-party systems are designed to be responsive to the people. That is, they are designed to promote the election of officials who r