1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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 %

You might be interested in
Wilcox Company has budgeted sales volume of 60,000 units and budgeted production of 54,000 units, while 10,000 units are in begi
VARVARA [1.3K]

Answer:

4,000 units

Explanation:

Given that

Sales volume = 60,000 units

Budgeted production = 54,000 units

Beginning finished goods = 10,000 units

The computation of units for ending finished goods inventory is computed below:-

Budgeted production = Ending finished goods + Sales volume - Beginning finished goods

54,000 = Ending finished goods + 60,000 - 10,000

54,000 = Ending finished goods + 50,000

= 4,000 units

6 0
3 years ago
Vanessa is organizing a proposal for a client to buy her company's service what information should she put first in her proposal
Tju [1.3M]
I think the answer is A let me know if I was right! <3
5 0
3 years ago
Read 2 more answers
Question 12 Which answer illustrates "compound interest"?
Ber [7]

Answer:D

Explanation:

7 0
2 years ago
How does consumer response to advertising vary on different days of the week and at different times of the day
Romashka-Z-Leto [24]

Answer:

The theme is very complex, however a short explanation of that type of distribution is given below with and example.

Explanation:

To begin with, that distribution of variables will totally depend on the type of product that is being under study. Having that in mind, the distribution to the advertising will be more or less strong on the consumer's attention depending on the day. Therefore that, for example, if the case is about an alcoholic drink or something related to the weekends like clothes for going out or something like that, then the advertising will cause more impact in the consumer on fridays and saturdays and that will be like that because the consumer will now be exposed to the possible situation of going out that exact night so he or she might want to consumer an alcoholic drink.

It will be the same with the hours of every day, if the advertising is shown late at night but before party time, then the consumers will be exposed to that commercial and will the necessity of buying, psychologically speaking.

3 0
2 years ago
The trial balance for Lindor Corporation, a manufacturing company, for the year ended December 31, 2016, included the following
Maurinko [17]

Answer:

Net income = $364,000

Earning per share (EPS) = $0.36 per share.

Explanation:

A continuous multiple-step statement of comprehensive income is a form of income statement shows in a categorical and continuous manner operating income, i.e. the profit earned from the primary activities of an entity through buying and selling merchandise, other income and expenses, and net income.

For this question, continuous multiple-step statement of comprehensive income can be prepared as follows:

Lindor Corporation

Multiple-step Statement of Comprehensive Income for 2016

<u>Details                                                                  $      </u>

Sales revenue                                            2,300,000

Cost of goods sold                                    <u> 1,400,000 </u>

Gross profit                                                   900,000

Operating expenses:

Selling and administrative expenses        <u> (420,000) </u>

Operating income                                        480,000

Non operating income and exp.:

Unrealized holding gains on inv. sec.          80,000

Interest expense                                          <u> (40,000) </u>

Income before tax                                        520,000

Income tax (30% * $520,000)                    <u> (156,000) </u>

Net income                                                  <u>  364,000 </u>

EPS (364,000 / 1,000,000)                                 0.36

8 0
3 years ago
Other questions:
  • Receive cash from customers, $16,400. Pay cash for employee salaries, $10,400. Pay cash for rent, $4,400. Receive cash from sale
    9·1 answer
  • The journal entry to record the purchase of equipment for a $220 cash down payment and a balance of $640 due in 30 days would in
    10·1 answer
  • MaryAnne is always late to meetings and she knows she needs to be better about being on time because it is expected by almost ev
    14·1 answer
  • A disadvantage of the mall-intercept survey is:
    11·1 answer
  • Kim's Egg Rolls were being promoted as a dinner item but after a few years the company decided to change their packaging and adv
    12·1 answer
  • Computech Corporation is expanding rapidly and currently needs to retain all of its earnings; hence, it does not pay dividends.
    12·1 answer
  • Business economics Que
    5·1 answer
  • 3. Keim, Inc. manufactures baseball gloves that normally sell for $40 each. Keim currently has 1,000 defective gloves in invento
    13·1 answer
  • In completing form fda 1572, statement of investigator, the investigator agrees to:.
    10·1 answer
  • All else equal, imposing taxes in markets where demand and supply are price- not only causes less but also raises more .
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!