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nalin [4]
3 years ago
7

You recently purchased a stock that is expected to earn 30 percent in a booming economy, 9 percent in a normal economy, and lose

33 percent in a recessionary economy. there is a 5 percent probability of a boom and a 75 percent chance of a normal economy. what is your expected rate of return on this stock?
Business
1 answer:
sergiy2304 [10]3 years ago
3 0
Took me a bit to understand what this is. I have no business sense at all.

Expected Rate of Return = 30%*5% + 9%*75% - 33% * (100 - 75 -5)%
Expected Rate of Return = 0.015 + 0.0675 - 33%*20%
Expected Rate of Return = 0.015 + 0.0675 - 0.066
Expected Rate of Return = 0.0165

This then is expressed as a %
0.0165 = 1.65 % Sounds like you are buying a US short term treasury.
If anyone else answers, take their answer.
 
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Businesses often spend significantly more money on creating customer access for their products/service than they spend on advert
Ksivusya [100]

Answer:

The correct answer is:

True (A)

Explanation:

Customer access strategy is a framework or a set of standards, guidelines and processes, which defines the means by which a customer and the organization can interact, and  means by which the customer has access to:

  • the relevant information needed to make purchases
  • the right logistics for the execution of a purchase

The arear of access are mainly information (value of the product, price of products, how products work) and logistics (means of getting the products, customer service on the after-purchase needs etc).

It has been studied extensively that companies are spending 3 to 4 times as much money on creating customer access than they do on advertising, this is because even if advertising is successful, the results will not be seen if customer access is not successful, and having an efficient customer access strategy can provide a competitive advantage to the producers.

5 0
3 years ago
A) You observe the following exchange rates in the market.
blagie [28]

Answer: i. €0.11

ii. €1.08

Explanation:

i. If we get 1 krona for every $0.13 then how many krona do we get per dollar?

= 1/0.13

= 7.69 Krona is to $1

If $1 is 7.69 Krona and $1 is also €0.85 then that means that,

€ 0.85 = 7.69 Krona

So for each Krona exchanged, we get how many Euro,

= 0.85/7.69

= 0.11

For each Krona exchanged, we get €0.11

ii. Following the example of the first question,

if £1 is to $1.12 then how many pounds are a dollar?

= 1/1.12

= 0.89

£0.89 is equal to a dollar.

if €1 is to $1.04 then how many euros are a dollar?

= 1/1.04

= 0.96

€0.96 are equal to a dollar.

This means that,

£0.89 = €0.96

So for every British Pound exchanged we get how many Euros?

= 0.96/0.89

= 1.078

= €1.08

For every British pound Exchanged, we get €1.08

6 0
3 years ago
There are two ways of calculating present and future values when there are multiple cash flows. Both approaches are straightforw
Vsevolod [243]

Answer:

bb bnb hb

Explanation:

mn mn nm mn mn mnbhvgcgfcgcbvcgfcvbvbvbv

3 0
3 years ago
Justin Cement Company has had the following pattern of earnings per share over the last five years: Year Earnings Per Share 20X1
ElenaW [278]

Answer:

(a) $4.08

(b) $51.03

Explanation:

Constant growth rate for earnings:

= (EPS for any year ÷ EPS for the previous year) - 1

= (8.40 ÷ 8.00) - 1

= 0.05

= 5%

(a) EPS for 2016 = EPS for 2015 × (1 + 5%)

                          = 9.72 × 1.05

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Dividend for 2016 = 40% × EPS for 2016

                               = 40% × 10.206

                               = $4.08

(b) Stock Price at the beginning of 2016:

= Dividend for 2016 ÷ (Required rate of return - Constant growth rate)

= 4.0824 ÷ (0.13 - 0.05)

= $51.03

8 0
3 years ago
Which of the following statements about the role of institutions in economic growth is TRUE and which of the following statement
ki77a [65]

Answer:

Explanation:

(a) Expropriation has Truly been a major concern for the Government through out the globe, as the when an entity or body which is supposed to work for the good of the poor people by making use of the Government property starts dealing in illegal ways to grab it as private or work on other properties which are private in nature,

b) The European invasion of the many countries across the globe had initially been to gain ,more and more wealth and power through business.

However, it is true that the quality of the institutions colonized by the Europeans is related to whether the climate or the diseases in the colonized regime allowed the European settlers to live in those areas.

(c) It is true that the low quality institutions make it difficult to protect property rights and enforce contracts. The rights of the people are all dependent on how the State allows the people to enjoy them.  

(d) It is true that the low-quality institutions are central to the theory of poverty traps that states that countries need a big push to felicitate convergence in living standards to the developed world.

 

8 0
3 years ago
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