Based on the following information, calculate the expected return. Probability of State of Economy State of Rate
Question:
Based on the following information, calculate the expected return.
Transcribed Image Text:
Probability of State of Economy State of Rate of Return Economy If State Occurs Recession .35 -.14 Normal .50 .16 Вoom .15 .43
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 90% (11 reviews)
The expected return of an asset is t...View the full answer
Answered By
Branice Buyengo Ajevi
I have been teaching for the last 5 years which has strengthened my interaction with students of different level.
4.30+
1+ Reviews
10+ Question Solved
Related Book For
Corporate Finance Core Principles And Applications
ISBN: 9781260571127
6th Edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan
Question Posted:
Students also viewed these Business questions
-
Calculating expected return based on the following information calculate the expected return State of Probability of State of Economy Rate of Return if Economy State Occurs Recession -09 30 70 Boom 33
-
Based on the following information, calculate the expected return and standard deviation for the twostocks. Rate of ReturnifState Occurs State of Probability of State of EconomyStockA Stock B...
-
Based on the following information, calculate the expected return and standard deviation for the twostocks. Rate of Return If State Occurs State of Economy Recession Normal Boom Probability of State...
-
1. Read the following article about the new circle with disney product and answer the following questions. in doing so, take on the role as the marketing manager responsible for the product and...
-
Consider the MFT record of Fig. 11-41. Suppose that the file grew and a 10th block was assigned to the end of the file. The number of this block is 66. What would the MFT record look like now?
-
Bandon Manufacturing intends to issue callable, perpetual bonds with annual coupon payments and a par value of $1,000. The bonds are callable at $1,175. One-year interest rates are 9 percent. There...
-
Entrepreneur magazine ranks franchises. Among the factors that the magazine uses in its rankings are growth rate, number of locations, start-up costs, and financial stability. A recent ranking listed...
-
MULTIPLE-CHOICE QUESTIONS 1. The auditor is testing the operating effectiveness of controls in the revenue cycle and notes the following: (a) the organization does not regularly follow its credit...
-
Smart Technology Company had the following information during the previous year for one of its product lines: Sales Price per Unit $6000 Units in Beginning Inventory 0 Units Started During the Year...
-
Steel is sequentially heated and cooled (annealed) to relieve stresses and to make it less brittle. Consider a 100-mm-thick plate (k = 45 W/m K. p = 7800 kg/m 3 c p = 500J/kg K) that is initially...
-
Based on the following information, calculate the expected return and standard deviation for the two stocks. Rate of Return If State Occurs Probability of State of Economy State of Economy Stock A...
-
You have $10,000 to invest in a stock portfolio. Your choices are Stock X with an expected return of 11.9 percent and Stock Y with an expected return of 9.7 percent. If your goal is to create a...
-
The following is a set of data from a sample of n = 7: a. Calculate the first quartile (Q1), the third quartile (Q3), and the interquartile range. b. Find and list the five-number summary. c....
-
A company starts in business on 1 January 2010, the financial year end being 31 December. You are to show: (a) The equipment account. (b) The provision for depreciation account. (c) The statement of...
-
What is meant by marginal analysis? Provide an example in which marginal analysis is useful in looking at policy questions.
-
The Electric Wiring Company employs staff to repair electrical equipment in customers homes under maintenance contracts. Each job of work is the cost unit for which costs are recorded and monitored....
-
The following trial balance was extracted from the books of F. Sorley on 30 April 2013. From it, and the note about inventory, prepare his income statement for the year ending 30 April 2013, and a...
-
A car costs 12,000. It will be kept for three years, and then sold for 3,000. Calculate the depreciation for each year using (a) the reducing balance method, using a depreciation rate of 35 per cent,...
-
Laelle Airlines, an international airlines company, offers a variety of services to its customers. Given this information, which of the following is the core service provided by Laelle Airlines? 1....
-
2. In the circuit given in Figure 2, i,(t) = 5.67cos(5t)A and v (t) = 70.71 cos(5t 60) V a) Find the equivalent load impedance. State whether the load is inductive or capacitive. b) Calculate the...
-
Given an interest rate of 6.4 percent per year, what is the value at t = 7 of a perpetual stream of $3,250 payments that begin at t = 15?
-
A local finance company quotes an interest rate of 16.6 percent on one-year loans. So, if you borrow $23,000, the interest for the year will be $3,818. Because you must repay a total of $26,818 in...
-
A 5-year annuity of 10 $6,500 semiannual payments will begin 9 years from now, with the first payment coming 9.5 years from now. If the discount rate is 9 percent compounded monthly, what is the...
-
What role do social institutions play in shaping individual and collective identities, and how do these identities intersect with race, gender, sexuality, and other aspects of social diversity to...
-
16. Let $V=\operatorname [span]\left\{\left(\begin{array}{1}1 \\ 0 \\ 1 \\ 0\end{array} ight), \left(\begin{array} (1)1 \\ 1 \\ 0 \\ 1\end{array} ight), \left(\begin{array} {1}0 \\ 1 \\ 1 AV...
-
Blossom Ltd., which follows ASPE had the following comparative statement of financial position: Blossom Ltd. Comparative Statement of Financial Position December 31 Assets 2024 2023 Cash $84.000...
Study smarter with the SolutionInn App