Answer:
I think you got it right*
Explanation:
I think this is the same question I took.
Answer:
b. 3.70 percent
Explanation:
Expected rate of return of a stock, given probabilities, is calculated by summing up the product of probability of each state occurring by the expected return of the stock should that happen.
Expected rate of return = SUM (probability *return)
Boom;(probability* return) = (0.15* 0.10) = 0.015 or 1.5%
Normal ;(probability* return) = (0.70* 0.04) = 0.028 or 2.8%
Recession ; (probability* return) = (0.15* -0.04) = -0.006 or -0.6%
Next, sum up the expected return for each state of the economy to find the expected rate of return on this stock;
= 1.5% + 2.8% -0.6%
= 3.7%
Therefore, the correct answer is choice B.
Answer:
$15 million
Explanation:
The three investors' total investments would add up to 100% or 1.
The first two invested in the ration of 2:3
It means ;
Investor 1: 2/5
Investor 2: 3/5
If investor 3 invested twice as investor 1 and 2, then we can deduce that he invested ( 2/5 + 3/5) x 2
the new denominator is 10, meaning
Investor 1 had 2/10,
investor 2 had 3/10
investor 3 had 5/10
If total investments were $30 million, then the highest investor invested
5/10 x $30million
=0.5 x $30 million
=$15 million
Answer:
c) Broker Factor.
Explanation:
A broker factor is an agent that sells goods that are from someone else for a comission and this person takes possession of the products that is selling. Also, a broker factor can make a sell in his/her name and has authorization to receive the money from the sale. Because of this, Mike's relationship with K&M is that of a broker factor.
