Question: 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

There is a probability 0.44 that a new law is passed

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 expect a lower return of 0.06. Can you estimate the variance of this rate of return? Type your answer as decimal (i.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!

Good Fortune Co. is a small public company that operates a chain of furniture stores throughout Canada. The company was founded by Kate Homewood, who still owns 25% of the outstanding shares and who...

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 0.18 . Else, investors...

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...

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...

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...

There is apobubw 0.54 that a new law is passed granting some tax credits to small businesses. If Question 7 Wdoes we expet investors of Small-Retailers to achieve a return of 0.18 . Else, investors...

nnerimprabiaity 0.58 that new law is passed granting some tax credits to small businesses. If 2ace we exact inestors of Small-Retailers to achieve a return of 0.17 . Else, investors may axdakeretum...

G h docs.google.com + G 3.4 Long-Ru.. G 3.5 Equilibrium.. G 3.7 Long-Run... G 3.8.1- Fiscal. G Macro Topic... Dashboard G Macro Topic... G Macro Topic... |3.3 Short-Ru.. G 3.6 Changes... 1. Identify...

See attached the case study for below questions. CASE REQUIREMENTS 1. What principles are involved in this situation? Start with not only the written standards that apply to this situation (i.e., the...

Solve the following linear programming model graphically: maximize Z = 1.5x1 + x2 subject to x1 4 x2 6 x1 + x2 5 x1, x2 0

A company's current inventory consists of 5,000 units purchased at $6 per unit. Replacement cost has now fallen to $5 per unit. What is the entry the company must record to adjust inventory to...

why are IPOs not a guaranteed way to multiply our money

On 1 March 2007 DB Limited issued R560 000 15% debentures at R98. The debentures were to be redeemed at par in four equal annual payments starting 28 February 2010. Required: Journalise the above...