Assume that an investment is forecasted to produce the following returns: a 10% probability of a $1400

Fantastic news! We've Found the answer you've been seeking!

Question:

Assume that an investment is forecasted to produce the following returns: a 10% probability of a $1400 return; a 50% probability of a $6,600 return; and a 40% probability of a $1500 return. What is the expected amount of return this investment will produce?

Posted Date: May 15, 2024 10:37 AM

See More Questions

Consider the following information: Rate of Return if State Occurs State of Economy Boom :57 Bust of Economy .66 .34 Probability of State Stock A .09 .13 Stock B Stock C .03 .19 .24 -.04 a. What is...
CoursHeroTranscribedText: DAT 520 Problem Set 6 Markov Modeling in Decision Trees Module Six introduces the Markov model. In this model, there are a defined set of states and we then have the...
After graduating from Eastern University in Campus Town, USA with a degree in business, Michael Woods realized that he wanted to remain in Campus Town. After a number of unsuccessful attempts at...
A dipole of 6.6 nC point charges arranged 0.16 cm apart is centered at the origin and oriented along the x-axis. The positive charge is on the negative x axis. How m energy is required to place a...
Consider the following payoff table: Choose the best alternative using the following criterion: a. Maximax b. Maximin c. Equally likely d. Minimax regret e. Hurwicz using = 0.4 Demand Level...
A liquid mixture containing 70.0 mol of n -pentane and 30.0 mol of n -hexane initially at 46?C is partially vaporized at P = 1 atm in a single-stage distillation apparatus (Rayleigh still). The heat...
What does your organization emphasizeleadership or management? Consider carefully both the verbal and the behavioral messages from established organizational leaders.
For many months your prospective ERP customer has been analyzing the hundreds of assumptions built into the $900,000 ERP software you are selling. So far, you have knocked yourself out to try to make...
Discuss the Federal-Aid Highway Act of 1956 regarding size and weight restrictions in the United States.
Generate a report to display names of the countries in Europe, Africa or Asia, # where vaccine is not available on April 1, 2021 and the name of the country starts with I ...
A 30-kVA 8000/230-V distribution transformer has an impedance referred to the primary of 20 j100 S. The components of the excitation branch referred to the primary side are RC- 100 k and XM-20 k? (a)...
4. Consider the two sinusoidal signals X1(t)=3cos(at + /2) and X2(t)=(3+j2)cos(wt). Let P(t) be the sum of the two signals i.e., P(t)=x1(t)+x2(t). Use only the method of phasor representation to: (a)...
10. int x = 10; bool y = 1; int x = y = (1 + 2 + 3)/x; Explanation: 11. int x 1, y = 10; y = ++x; x += y-- 3; Explanation: x =
Problem 1 0 - 1 4 ( Algo ) Basic Variance Analysis [ LO 1 0 - 1 , LO 1 0 - 2 , LO 1 0 - 3 ] Becton Labs, Incorporated, produces various chemical compounds for industrial use. One compound, called...
Examine the court initiated criminal justice policies, what do you see as the most promising programs? Determine how these programs affect the other parts of the criminal justice system the police,...
Please create a stock portfolio of at least two Canada based stocks that are members of S&P TSX 60 Index (TSX.CSV), two U.S.based stocks that are members of S&P 500 index (SP500.CSV), two...
Government is advised to tax goods whose demand curves are inelastic if the goal is to raise tax revenues. If the goal is to discourage consumption, then it ought to tax goods whose demand curves are...
Mensa Mountaineering Company (MMC) provides guided mountain climbing expeditions in the Rocky Mountains. Its only major expense is guide salaries; it pays each guide $$4,800$ per climbing...
Sharp Company makes and sells pencil sharpeners. The variable cost of each sharpener is $$20$ . The sharpeners are sold for $$30$ each. Fixed operating expenses amount to $$40,000$ . Required:...
ProNet's total flexible budget cost for 75 connectors per month is a. $\$ 8,130$ b. $\$ 9,750$ c. $\$ 13,000$ d. $\$ 17,750$ ProNet Systems is a start-up company that makes connectors for...

Assume that an investment is forecasted to produce the following returns: a 10% probability of a $1400

Question:

Expert Answer:

To calculate the expected amount of return for this in... View the full answer

Students also viewed these finance questions