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
Dmitry_Shevchenko [17]
4 years ago
9

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

Business
1 answer:
Charra [1.4K]4 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%.

You might be interested in
An insurance policy is _____.
Marysya12 [62]
An insurance policy is Teara Jones A.K.A "Lil Boat"
6 0
3 years ago
Read 2 more answers
M7-7 to M7-9 Calculating Cost of Goods Available for Sale, Ending Inventory, Sales, Cost of Goods Sold, and Gross Profit under P
zvonat [6]

Answer:

Date          Units                       Unit Cost            Unit Selling Price

July 1 Beginning Inventory 50    $ 10

July 13 Purchase      250                 13

July 25 Sold (100 )                                                                  $ 15

July 31 Ending Inventory 200

Cost of Goods Available for sale= 250 units at $  13+   50 units at   $ 10

= 3250 + 500= $3750

FIFO Ending Inventory $ 2600

200 units at $ 13= $ 2600

Sales 100At $ 15= $1500

FIFO Cost Of Goods Sold  $ 1150

50 units at $ 10= $ 500

50 units at $ 13= $ 650

LIFO Ending Inventory $ 2450

50 units at $ 10= $ 500

150 units at $ 13= $ 1950

Sales 100 at $ 15= $1500

LIFO Cost Of Goods Sold  $ 1150= Cost of Goods Available for Sale Less LIFO Ending Inventory = 3750- 2450= $ 1300

100 units at $ 13= $ 1300

Weighted Average Ending Inventory 12.5 * 200= $ 2500

Total Cost/ total units= 3750/300= 12.5

Weighted Average  Cost Of Goods Sold  $ 1150= Cost of Goods Available for Sale Less Weighted Average  Ending Inventory = 3750- 2500= $ 1250

Weighted Gross Profit= Sales Less Weighted Cost Of Goods Sold= $ 1500- $ 1250= $ 250

7 0
3 years ago
How should a loss contingency that is reasonably possible and for which the amount can be reasonably estimated be reported
guajiro [1.7K]

Answer:

as a footnote in financial statements or on the balance sheet

Explanation:

A loss contingency can be defined as the situation or occurrence in which there is uncertainty about an entity but that will be resolved when a/some future situation occurs or not.

Simply put, a loss contingency can be said to be loss of an entity that can be resolved later in future by the occurrence or not of an event.

When a loss can be reasonably estimated as seen from the question, it should be written as a footnote on a financial statement or on a balance sheet.

cheers.

5 0
3 years ago
At the end of June, the Marquess Company factored $200,000 in accounts receivable with Homemark Finance. The transfer is made wi
yanalaym [24]

Answer:

$6,000

Explanation:

Receivables may be factored to ease the liquidity pressures of an entity. Factoring comes at a cost. As such, when receivables are factored, the entries required are

Debit Cash account

Dr Interest expense (factoring charge)

Credit Accounts receivables

As such, the amount of loss on sale of receivables would Marquess record in June is equivalent to the factoring charge

= 3% * $200,000

= $6,000

7 0
4 years ago
Read 2 more answers
Shoe-leather costs arise when higher inflation rates induce people to __________.
S_A_V [24]

Answer:

D - Hold less money

Explanation:

Inflation is the persistent increase in the general prices of goods and services over a period of time.

During inflation period, nobody wants to hold more of cash because the value of money gets depreciated as inflation increases  (prices of goods increase).

For example, shoe-leather costs increases when there is an increase in inflation and it makes more economic sense to purchase shoe-leather as it preserves the value of money.

3 0
3 years ago
Other questions:
  • Summerdahl Resort's common stock is currently trading at $39.00 a share. The stock is expected to pay a dividend of $1.50 a shar
    14·1 answer
  • Which one of the following is not an important source of revenue for the federal government?
    14·2 answers
  • The cost of materials transferred into the Bottling Department of Mountain Springs Water Company is $32,400, with $26,000 from t
    6·1 answer
  • In preparing Tywin Company's statement of cash flows for the most recent year, the following information is available: Purchase
    15·1 answer
  • Identify one advantage and two disadvantages of a monopoly.
    6·1 answer
  • "Businesses that engage in supply chain management work to establish long-term relationships with a small number of very capable
    9·1 answer
  • To encourage borrowers to accept adjustable rate mortgages (ARMs) rather than level-payment mortgages, mortgage originators gene
    12·1 answer
  • Which theory combined the Japanese approach with such features as lifetime employment, employee problem solving, and consensus b
    9·1 answer
  • What term is used to refer to crimes committed by individuals in the course of their daily business activities
    9·1 answer
  • How do men and women generally differ in their communication styles in organizational settings?
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!