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
scoundrel [369]
3 years ago
8

You are in the market for a used car and decide to visit a used car dealership. You know that the Blue Book value of the car you

are looking at is between $20,000 and $24,000. If you believe the dealer knows as much about the car as you do, how much are you willing to pay? Why? Assume that you care only about the expected value of the car you will buy and that the car values are symmetrically distributed.
Business
1 answer:
Artemon [7]3 years ago
3 0

Answer:

The expected value of the car you will buy is $22,000

Explanation:

In the given question, the car values are symmetrically distributed which means that we have to compute the mean between the values that are mentioned in the question.

So, the mean is an average of the numbers, the computation is shown below:

= (Value 1 + value 2) ÷ (number of observations)

= ($20,000 + $24,000) ÷ 2

= $22,000

You might be interested in
Which of the following correctly defines a​ product?
Alisiya [41]

Answer: Option C            

                           

Explanation: In simple words, a product refers to an entity that that could be tangible or intangible and is produced by the manufacturer for satisfying the wants of its customers.

Hence anything that is offered to the market and has the ability to satisfy the needs of specified individuals will be classified as a product.

Thus, the correct option is C.

7 0
3 years ago
Calculate the portfolio required rate of return (rs) for the Wagner Assets Management Group, which holds 4 stocks. The expected
Ivahew [28]

Answer:

11.10%

Explanation:

For computing the portfolio required rate of return first we have to calculate the portfolio beta which is shown below:

Portfolio Beta = Beta of Stock A × Weight of Stock A + Beta of Stock B × Weight of Stock B + Beta of Stock C × Weight of Stock C + Beta of Stock D × Weight of Stock D

= 1.50 × $200,000 ÷ ($200,000 + $300,000 + $500,000 + $1,000,000) 0-.50 × $300,000 ÷ ($200,000 + $300,000 + $500,000 + $1,000,000) + 1.25 × $500,000 ÷ ($200,000 + $300,000 + $500,000 + $1,000,000) + 0.75 × $1,000,000 ÷ ($200,000 + $300,000 + $500,000 + $1,000,000)

= .7625

Now the portfolio Required Rate of Return  is

Required Rate of Return = Risk Free Rate + Beta × (Market Rate of Return - Risk Free Rate)

= 5% + .7625 × (13% - 5%)

= 11.10%

We simply applied the above formulas

5 0
3 years ago
Is this bond currently trading at a​ discount, at​ par, or at a​ premium? Explain. ​(Select the best choice​ below.) A. Because
Dmitrij [34]

A. Because the yield to maturity is less than the coupon​ rate, the bond is trading at a discount. FALSE

<u>Explanation:</u> If the yield to maturity (YTM) is less than the Coupon rate (CR) the bond is trading at a premium

B. Because the yield to maturity is greater than the coupon​ rate, the bond is trading at par. FALSE

<u>Explanation:</u> If the yield to maturity (YTM) is greater than the Coupon rate (CR) the bond is trading at a discount.

C. Because the yield to maturity is less than the coupon​ rate, the bond is trading at a premium. TRUE

D. Because the yield to maturity is greater than the coupon​ rate, the bond is trading at a premium. TRUE

7 0
3 years ago
How to find the average amount of something?
Novay_Z [31]
Add up all the numbers and divide it by the amount of numbers there are. For example, the average of 2, 4, and 1 would be 2+4+1= 6, then 6/3 because there are 3 numbers.
7 0
3 years ago
Painting expenses is debit or credit​
miss Akunina [59]

Answer:

Debit

Explanation:

If its not a house or a big invesment into a buisness it is debit

3 0
2 years ago
Read 2 more answers
Other questions:
  • One guide to choosing a leadership approach uses a series of questions. For example, "Is decision quality highly important?" or
    15·1 answer
  • What term means an explosive and seemingly uncontrollable inflation in which money loses value rapidly and may even go out of​ u
    15·1 answer
  • Joan has 40 employees and produces 800 units of output; when she adds one more employee to her construction company. The total o
    15·1 answer
  • When you are finished working with a presentation, you can exit powerpoint. if there is only one presentation open, you click th
    5·1 answer
  • In which investment category are fair values and subsequent growth of an investee not relevant for reporting?
    13·1 answer
  • Rhonda, a junior accountant at a manufacturing company, was laid off from her job because she rejected multiple requests from th
    14·1 answer
  • Which of the following responsibilities must be assumed by the management of a company?
    13·1 answer
  • As the amount of money supply increases inters rates which in turns causes spending to
    10·1 answer
  • Which of the following would the U.S. Bureau of Labor Statistics define as a discouraged worker?
    5·1 answer
  • Don is thinking of borrowing $10,000 from Hancock Whitney Bank. He promises Hancock Whitney cash flows of $5,000 every year for
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!