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yulyashka [42]
3 years ago
9

Crabby Shores stock is expected to return 15.7 percent in a booming economy, 9.8 percent in a normal economy, and 2.3 percent in

a recession. The probabilities of an economic boom, normal state, or recession are 15 percent, 73 percent, and 12 percent, respectively. What is the expected rate of return on this stock?
Business
1 answer:
VLD [36.1K]3 years ago
4 0

Answer:

The expected return on the stock is 9.785%

Explanation:

The expected rate of return on a stock is the return of the stock expected in different scenarios multiplied by the probability that those scenarios will occur. The expected return can be calculated as follows,

r = rA * pA + rB * pB + ... + rN * pN

  • Where,
  • rA, rB to rN expects return under different scenarios
  • pA, pB to pN represents the probabilities of each scenario

Thus,

r = 0.157 * 0.15  +  0.098 * 0.73  +  0.023 * 0.12  

r = 0.09785 or 9.785

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Which of these statements is true?
olasank [31]

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Compound interest will lead to a larger sum of money than a comparable simple interest payment.

Explanation:

The true statement is that compound interest will lead to a larger sum of money than a comparable simple interest payment because the interest are compounded for a certain number of times such as daily, weekly, quarterly or annually while simple interest isn't compounded at all.

To find the future value, we use the compound interest formula;

A = P(1 + \frac{r}{n})^{nt}

Where;

A is the future value.

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Mathematically, simple interest is calculated using this formula;

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6 0
3 years ago
The project is expected to generate the following net cash flows:
iVinArrow [24]

Answer:

Correct option is A 5.01%

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Why is it important that ""links live forever"" when designing an internet-based electronic commerce system?
Elenna [48]

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When designing an electronic internet-based site, it is important that all the links live forever. The reasons are:

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5 0
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blondinia [14]

The logical conclusion to draw from Nokia's experience in this regard is Nokia prioritized that attribute more highly than the market did. The correct option is d.

<h3>What is the logical conclusion?</h3>

A logical conclusion is a logical statement that is given by taking facts and ideas that are presented before the person. These conclusions are based on true facts and logical things that can happen.

Here, the company Nokia dismissed the original iPhone with its large glass surface, partly because it failed the testing.

Thus, the correct option is d. Nokia prioritized that attribute more highly than the market did.

To learn more about logical conclusion, refer to the link:

brainly.com/question/24658702

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d. Nokia prioritized that attribute more highly than the market did.

e. Apple should have enforced stronger quality controls.

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