Question: 1.5 pts There is a probability 0.42 that a new law is passed granting some tax credits to small businesses. If it does, we expect

1.5 pts There is a probability 0.42 that a new law is passed granting some tax credits to small businesses. If it does, we expect investors of Small Retailers to achieve a return of 0.17. Ele investors may expect a lower return of 0.08. Can you estimate the variance of this rate of return? Type your answer as decimal(e. 0.052 and not 5.2%). Round your answer to the nearest four decimals if needed

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Hannah is VAT-registered and sells standard-rated goods in the UK and also exports the same goods overseas. Hannah has provided you with the following information for the quarter ended 31 August 2024...

There is a probability 0 . 6 7 that a new law is passed granting some tax credits to small businesses. If it does, we expect investors of Small - Retailers to achieve a return of 0 . 1 5 . Else,...

There is a probability 0.58 that a new law is passed granting some tax credits to small businesses. If it does. We expect investors of Small-Retailers to achieve a return of 0.16. Else, investors may...

There is a probability 0.29 that a new law is passed granting some tax credits to small businesses. If it does, we expect investors of Small-Retailers to achieve a return of 0.17. Else, investors may...

There is a probability 0.2 that a new law is passed granting some tax credits to small businesses. H it does, we expect investors of Small-Retailers to achieve a return of 0.19. Else, investors may...

There is a probability 0.29 that a new law is passed granting some tax credits to small businesses. If it does, we expect investors of Small-Retailers to achieve a return of 0.18 . Else, investors...

Finance Question. Will upvote. There is a probability 0.64 that a new law is passed granting some tax credits to small businesses. If it does, we expect investors of Small-Retailers to achieve a...

There is a probability 0.45 that a new law is passed granting some tax credits to small businesses. If it does, we expect investors of Small-Retailers to achieve a return of 0.15 . Else, investors...

There is a probability 0.44 that a new law is passed granting some tax credits to small businesses. If it does, we expect investors of Small-Retailers to achieve a return of 0.17. Else, investors may...

What is the working capital, current ratio, and quick ratio of Intuit? Please use the attached annual report. Frequently, management will comment on liquidity in the MD&A (management's discussion and...

FILE TOOLS VIEW 6401819_1_writing-case--4 - Word (Product Activation Failed) Financing Early Operations Musk's first entrepreneurial venture was to join up with his brother, Kimbal, and establish...

With the reporting of investments being dependent upon the intent of management, there is opportunity for misrepresentation and fraud. This discussion will allow you to develop expertise in...

How could an advertising company defend itself from an accusation of misleading advertising related to a campaign it worked on?

The distribution decision involves splitting the profits of the firm between: Suppliers and creditors Owners and the business itself Owners and creditors Stockholders and bondholders

10) For a bond that pays cash interest (i.e., not a zero coupon bond), YTM is (a) always equal to the coupon rate (b) always equal to the current yield (c) is always less than the coupon rate (d) can...

Comprehend the links between human resource management (HRM) practices and high performance.

Identify the key aims of the recruitment process. Plan a recruitment campaign.

Identify the various ways that technology can enhance a recruiting exercise.