Answer and Explanation:
The computation is shown below:
a. For expected return
As we know that
Expected return = Probability × Rate of return
The same formula applies for all of the given stock
For Boom it is
= 0.4(0.21) + 0.4(0.36) + 0.2(0.55)
= 0.33
For Normal it is
= 0.4(0.17) + 0.4(0.13) + 0.2(0.09)
= 0.13
For Bust
= 0.4(0.00) + 0.4(-0.28) + 0.2(-0.45)
= - 0.20
So, the expected rate of return is
= 0.25(0.33) + 0.60(0.13) + 0.15(-0.20)
= 0.1305
Now the variance is
= 0.25 × (0.33 - 0.1305)^2 + 0.60 × (0.13 - 0.1305)^2+ 0.15 × (-0.20 – 0.1305)^2
= 0.053
Now the standard deviation is
= [0.053]^1/2
= 0.23
b. Risk premium is
= E(Rp) – Rf
= 0.1305 - 0.038
= 0.0925
c. Expected real return is
= 0.1305 - 0.035
= 0.0955
The Expected real risk premium is
= risk premium - inflation rate
= 0.0955 - 0.035
= 0.0605
We simply applied the above formulas
Answer:
Non-price competition
Explanation:
Non-price competition is when producers use other factors other than the price of their good or service to raise the demand for their product.
Optimax is trying to increase its market share by changing the container for its product. This is non price competition.
Price war is when producers lower the price of their goods in an attempt to increase the demand for their product.
Price leadership is when the dominant firm in an industry sets the market price.
I hope my answer helps you
Answer:
The Correct Answer is "Accrue a $15 million liability and define it in a note to the financial report"
Explanation:
Collect a $15 million risk and clarify it in a note to the budget reports.
Since according to the bookkeeping standard of conservatism or show of conservatism, we ought to foresee and represent all the conceivable losses,but not benefits. Since the case have been made in 2021 we should accept it as a future conceivable misfortune and ought to be appeared in our records.
Answer:
<em>The amount that he will be charged in a special assessment tax to cover his cost of the sidewalk Is $2000 </em>
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Explanation:
We are told that the property is an interior lot, so we'll only consider one of the width of his plot, since the sidewalk can only pass through the front or the back of his property.
The property measures 100' x 500' , that is 100 ft width by 500 ft length
The cost of the sidewalk is $40 per linear ft
The city will pick up 50% of the cost.
For a width of the lot, the cost per linear length will be
100 x $40 = $4000
The city covers 50% of this cost, leaving 50% of the cost to the homeowner.
The homeowner's cost will be 50% of $4000
= 0.5 x $4000 =<em> $2000 </em>
<em>The amount that he will be charged in a special assessment tax to cover his cost of the sidewalk Is $2000 </em>
Answer:
Pregnancy Discrimination Lawyers
Explanation: