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
Zepler [3.9K]
3 years ago
10

For an investment in a stock, the probability of the return being –10.0% is 0.3, 10.0% is 0.4, and 30.0% is 0.3. given the proba

bility distributions, what is the expected rate of return for the investment
Business
1 answer:
Nataliya [291]3 years ago
4 0
The expected return will be given by:
E(R)=Total sum of the expected return
E(R)=-0.1*0.3+0.1*0.4+0.3*0.3
E(R)=-0.03+0.04+0.09
E(R)=0.1=10%

We therefore conclude that the expected return is 10%
You might be interested in
A $22 credit to sales was posted as a $220 credit by what amount is the sales account in error
Elodia [21]
I think i read the question right. I think they would be out $198
5 0
3 years ago
Read 2 more answers
Ms. Towne is buying a home for $250,000 and is putting down 20% cash on the purchase. She is financing the rest with a 30-yr, fi
kipiarov [429]

Answer:

$180

Explanation:

the monthly payment = principal / annuity factor

  • principal = $250,000 x 80% = $200,000
  • PV annuity factor, 360 periods, 0.38542%= 194.4995527

monthly payment = $200,000 / 194.4995527 = $1,028.28

in total, you will pay $1,028.28  x 360 = $370,180.80, so total interests = $370,180.80 - $200,000 = $170,180.80

the biweekly payment = principal / annuity factor

  • principal = $250,000 x 80% = $200,000
  • PV annuity factor, 780 periods, 0.178%= 421.62071

monthly payment = $200,000 / 421.62071 = $474.36

in total, you will pay $474.36  x 780 = $370,000.80, so total interests = $370,000.80 - $200,000 = $170,000.80

During the 30 year period, you will be able to save $170,180.80 - $170,000.80 = $180 in interests

3 0
3 years ago
What are the benefits of intrapreneurship to the Country​
kherson [118]
<h3><em>Ans</em><em>w</em><em>e</em><em>r</em><em>:</em><em>Organizations that have embraced Intrapreneurship have achieved higher financial returns, increased productivity, more innovation and higher levels of employee engagement.</em></h3>
3 0
2 years ago
A food manufacturer reports the following for two of its divisions for a recent year.
hram777 [196]

Answer:

1. 13.8% and 14.6%

2. 13.6% and 16.5%

3. 1.01 times and 0.88 times

Explanation:

The computations are shown below:

1. Return on investment = Operating Income ÷ Average invested Assets

where, average invested assets would be

= (Invested assets, beginning + Invested assets, ending) ÷ 2

For Beverage Division, it would be

= $366 ÷ {($2,696 + $2,610) ÷ 2}

= $366 ÷ $2,653

= 13.8%

For Cheese Division, it would be

= $651 ÷ {($4,489 + $4,417) ÷ 2}

= $651 ÷ $4,453

= 14.6%

2. Profit margin = (Operating income ÷ sales) × 100

For Beverage Division, it would be

= ($366 ÷ $2,698) × 100

= 13.6%

For Cheese Division, it would be

= ($651 ÷ $3,942) × 100

= 16.5%

3. Investment turnover = Sales ÷ Average Operating Assets

For Beverage Division, it would be

= $2,698 ÷ {($2,696 + $2,610) ÷ 2}

= $2,698 ÷ $2,653

= 1.01 times

For Cheese Division, it would be

= $3,942 ÷ {($4,489 + $4,417) ÷ 2}

= $3,942 ÷ $4,453

= 0.88 times

7 0
3 years ago
Suppose your company needs $43 million to build a new assembly line. Your target debt-equity ratio is .65. The flotation cost fo
elena-14-01-66 [18.8K]

Answer: See explanation

Explanation:

Debt = 0.65

Weight = 39.39%

Cost for debt = 2%

Product = 39.39% × 2%

= 0.3939 × 0.02

= 0.007878

Equity = 1.00

Weight = 60.61%

Cost for equity = 6%

Product = 60.61% × 6%

= 0.6061 × 0.06

= 0.036366

Weighted average floatation cost:

= 0.007878 + 0.036366

= 0.044244

= 4.42%

The true cost of the building will then be:

= Funds needed / (1 - Floatation cost)

= $43,000,000 / (1 - 0.044244)

= $43,000,000 / 0.955756

= $44,990,562

6 0
3 years ago
Other questions:
  • If you see someone moving furtively around your home what should you do
    5·1 answer
  • __________ are not one of the types of engagements and related forms of conclusions that are defined by the attestation standard
    7·1 answer
  • Who helps the offender is helped through the case and is charged with protecting the rights of the offender?
    9·2 answers
  • This year, international accountants, inc., implemented a new benefits system that gives employees the flexibility to choose amo
    14·1 answer
  • 18. If you have $1,000 to deposit in a savings account for 1 year, which of the following should you choose: 8.75% compounded co
    11·2 answers
  • If a market is in equilibrium is it necessarily true that all potential buyers and sellers are satisfied with the market​ price?
    5·1 answer
  • Mr. &amp; Mrs. Dart own a majority of the outstanding capital stock of Wall Corp., Black Co., and West, Inc. During 2010, Wall a
    6·1 answer
  • The us government is trending away from deregulation toward regulated monopolies
    12·1 answer
  • The recording of transactions and events is called:.
    10·1 answer
  • The method of cost estimating that falls between the other two cost estimating methods in complexity is the __________ method.
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!