Answer:
Expected Returns:
1. Stock A:
= (0.2 x 0.04) + (0.5 x 0.05) + (0.3 x 0.07)
= -0.02 + 0.04 + 0.12
= 0.14
= 14%
2. Stock B:
= (0.2 x -0.1) + (0.5 x 0.08) + (0.3 x 0.1)
= -0.008 + 0.025 + 0.021
= 0.054
= 5.4%
Explanation:
a) Data and Calculations:
States(s) Probability E(rAS) E(rB,)
Recession 0.2 -0.1 0.04
Normal 0.5 0.08 0.05
Expansion 0.3 0.1 0.07
b) An investor in Stock A's expected return is the sum of the returns under different economic scenarios of recession, normal economy, and expansion, weighed by the probabilities of each event, which the investor would expect to realize by making the investment in a security. Stock A's expected return shows that the investor in the stock would expect a 14% return on the value of the investment. Whereas, the same investor would expect a return of 5.4% in Stock B's investment.
Answer:
Jennifer's monthly expenses for the month were $4,360.
Explanation:
Net worth is simply the total value of assets that an individual owns minus the total liabilities. It is a quick snapshot of the financial health of that individual. In that, it can be used to know how much the individual's real worth is.
Jennifer had an income of $3,870 but still used some of her liquid savings to cover her monthly expenses and this led to decrease of $490. This means Jennifer exhausted her income of $3,870 and still used up her liquid savings to the tune of $490 to cover her monthly expenses of $4,360 ($3,870 + $490).
Answer:
Explanation:
The computation is shown below:
(A) (B) (A - B)
Current Year Prior Year Dollar change
Short-term investments $380,834 $240,061 $140,773
Accounts receivable $103,020 $106,337 -$3,317
Notes payable $0 $94,802 -$94,802
Now the percentage change would be
= (A - B) ÷ (B) × 100
For Short-term investments = 58.64%
For Accounts receivable = - 3.12%
For Notes payable = - 100%
Answer:
Gain recognized = $45,000
Basis in the land = $545,000
Explanation:
The computation of amount of gain and basis in the land it receives is shown below:-
This refers to taxable exchange. Therefore the Red Blossom would recognize a gain = Fair Market value - Basis in the Tea Company stock
= $545,000 - $500,000
= $45,000
and
The basis in the land it receives will be the fair value or
= Basis in the Tea Company stock + Gain
= $500,000 + $45,000
= $545,000
False. They may look the same but they work differently. Credit cards are issued by banks and lenders. Debit cards uses money from your own bank account to pay for purchases. Credit cards pay for purchases using money from the lender's account.