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Dmitry_Shevchenko [17]
3 years ago
9

What is the expected return on this stock given the following information?

Business
1 answer:
Charra [1.4K]3 years ago
4 0

Answer:

The expected return on this stock is:

C. -6.80%.

Explanation:

a) Data and Calculations:

State of the  Economy      Probability     E(R)    Weighted Value

Boom                                  0.40             16%      0.064

Recession                          0.60            -22%    -0.132

Total expected returns                                      -0.068

= -6.8%

Let us assume that this stock is Stock A.  Therefore, Stock A's expected return is given by adding the weighted returns of the two economic states of Boom and Recession.  The result shows that the returns will be negative (-6.8%).  This implies that instead of appreciating in value, the stock will actually depreciate by 6.8%.

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Explanation:

Industrialization is when am economy moves from the agricultural sector to the industrial sector.

The factors of industrialization does Baines cite in the reading include:

• Water power to run machines

• rivers for transportation of goods

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8 0
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The settlement date between the options clearing coporation and the clearing firm for otpions transactions is?
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What do you mean of trade?

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How trade is important?

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8 0
1 year ago
Which of these is NOT one of the five ethical principles the GAO's Yellow Book stresses?
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Answer:

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3 years ago
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Explanation:

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