Answer:
Part 1 - Local Package Store 0.75 × 10 = $7.50 + $3.30 = $10.80
Nationally-Owned Package Store 0.95 × 10 = $9.50 + $3.30 = $12.80
Part 2 - Local Package Store #1 0.75 × 15 = $11.25 + $3.30 = $14.55
Nationally-Owned Package Store #2 0.95 × 15 = $14.25 + $3.30 = $17.55
Part 3 - Local Package Store #1 0.75×17 = $12.75 + $3.30 = $16.05
Nationally-Owned Package Store #2 0.95×17 = $16.15 + $3.30 = $19.45
Part 4 - 1. The Local Package Store was Cheaper for all three packages than the Nationally-Owned Package Store.
2. The Local Package Store is cheaper for the 1 pound 1 ounce package than the Nationally-Owned Package Store.
Answer:
Step 3
Step-by-step explanation:
you cant factorise both of them as they have nothing in common
Based on the various probabilities given and the returns, the expected return will be <u>15.4%. </u>
<h3>What is expected return? </h3>
Expected return is the weighted average of potential returns and their probabilities.
It can be calculated using the formula:
= ∑ (Probability of season x Return if season comes)
<h3>What is the expected return on Gelato shares? </h3><h3 />
Can be found as:
= (0.2 x 30%) + (0.6 x (15%) + (0.2 x 2%)
= 15.4%
In conclusion, the expected return is 15.4%. One limitation of using this method however, is that the <u>returns </u><u>and </u><u>probabilities </u><u>are based on </u><u>historical </u><u>data and these conditions might not repeat themselves. </u>
Find out more on expected return at brainly.com/question/26061754.