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Bas_tet [7]
3 years ago
8

Suppose you own a stock that you believe will produce a return of 13% in a good economy and 4% in a poor economy. Given the prob

abilities of each state of the economy occurring, you think that your stock will earn 8.0% next year. Which one of the following terms does this 8% describe?
A) Arithmetic return
B) Expected return
C) Historical return
D) Required return
E) Geometric return
Business
1 answer:
agasfer [191]3 years ago
7 0

Answer:

The correct answer is letter "B": Expected return.

Explanation:

Expected return is the return an investor expects from an investment given the investment's historical return or probable rates of return under different scenarios. To determine expected returns based on historical data, an investor simply calculates an average of the investment's historical return percentages and then, uses that average as the expected return for the next investment period.

In the example, the expected return would be:

<em>Expected return </em><em>= (return in a good economy + return in a poor economy)/2</em>

<em>Expected return </em><em>= (13% + 4%)/2</em>

<em>Expected return </em><em>= </em><em>8,5%</em>

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Answer:

B) reach.

Explanation:

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6 0
3 years ago
Monroe consumes crab cakes and tuna. Monroe's utility increases with the consumption of crab cakes, but his utility neither incr
SpyIntel [72]

Answer:

A) horizontal lines

Explanation:

An indifference curve is a curve that shows the two combinations of goods that gives a consumer equal satisfaction.

If Monroe's utility doesn't increase with the consumption of crab cakes, his indifference curve would be a horizontal line. This is because crab cakes and tuna are perfect subsistuites. Monroe would be willing to substitute tuna for crab cakes as he doesn't derive any satisfaction from consuming tuna.

I hope my answer helps you

8 0
3 years ago
In the end, businesses that use teams tend to have ______. a. Fewer sick leaves b. More profits c. More management d. Fewer prod
Lyrx [107]

Answer:

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Explanation:

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4 0
3 years ago
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xeze [42]

Answer:

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Dividend = $2.34

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2 years ago
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