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adelina 88 [10]
3 years ago
8

Darren has the option of investing in either Stock A or Stock B. There is a 45 percent chance that the return on Stock A will be

25 percent, a 25 percent chance it will be 14 percent, and a 30 percent chance it will be 4 percent. There is a 45 percent chance that the return on Stock B will be 30 percent, a 25 percent chance it will be 9 percent, and a 30 percent chance it will be2 percent. What is the expected rates of return on Stock A and Stock B?
Business
1 answer:
saw5 [17]3 years ago
7 0

Answer:

15.95 %

16.35 %

Explanation:

Stock A.

Given:

Return expectation r1 = 45%

Probability expectation p1 = 25%

Return expectation r2 = 25%

Probability expectation p2 = 14%

Return expectation r3 = 30%

Probability expectation p3 = 4%

Expected Rate of Return = r1p1 + r2p2 + r3p3.........

= (45% x 25%) + (25% x 14%) + (30% x 4%)

= 11.25% + 3.5% + 1.2%

= 15.95 %

Stock B.

Given:

Return expectation R1 = 45%

Probability expectation P1 = 30%

Return expectation R2 = 25%

Probability expectation P2 = 9%

Return expectation R3 = 30%

Probability expectation P3 = 2%

Expected Rate of Return = R1P1 + R2P2 + R3P3.........

= (45% x 30%) + (25% x 9%) + (30% x 2%)

= 13.5% + 2.25% + 0.6%

= 16.35 %

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mario62 [17]

Answer: False

Explanation:

Ethics are the moral principles which govern the behavior of a person. Ethics help us to know what is right or what is wrong.

Ethics Training program are done in order to enable workers to be able to identify and also deal with the ethical problems that they may face.

Therefore, the statement that "Ethics training programs typically teach how to disguise unethical behavior and not how to avoid unethical behavior" is false.

6 0
3 years ago
As it relates to inventory, a buyer's time expended to prepare the purchase order for more material is considered a(n) ____ cost
OLga [1]

Answer:

"Ordering" is the correct solution.

Explanation:

  • Ordering expenses are incurred in purchasing a new shipment of manufactured goods. This would include expenditures for the attempting to place of a purchase agreement, cost savings for the evaluation including its batches expected to receive, ends up costing for documentary evidence, etc.
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2 years ago
The __________ is the combination of media used and the frequency of advertising in each medium. Question 34 options: media plan
Kryger [21]
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2 years ago
Green Caterpillar Garden Supplies Inc. just reported earnings after tax (also called net income) of $9,750,000, and a current st
astra-53 [7]

Answer:

a. $12.08 per share

Explanation:

For computing the next year stock we have to do the following calculations  

Current Earning per share  = Net Income ÷ Number of Common Shares Outstanding

= $9,750,000 ÷ 5,500,000 shares  

= $1.77

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= $14.74 ÷ $1.77

= 8.33

Now Next year earning per share = $9,750,000 ×  1.25 ÷ 8,400,000 shares = $1.45

So, the next year stock price = $1.45 x 8.33

= $12.08 per share

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