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Unformatted text preview: b. 1 standard deviation = 500,000 c. z = 1.2mil -1.5mil/390,625 = -.77 z = 22.06% 6. Amgen appears to be a high risk firm; past performance tells us this, as does the projected profit performance. Returns may be high, as is risk. Performance projection is also consistent with the high-return possibilities. b. The company’s projected high-return projection is favorable and justified as a result for the high cost of the investors’ risk. If there is no pay off or projection for high profits to justify the risk, there would be no reason for investors to take interest in Amgen....
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This note was uploaded on 01/30/2011 for the course ECO 5705 taught by Professor Kest during the Spring '10 term at Hodges University.
- Spring '10