Answer:
the expected return is 12.7%
Explanation:
The computation of the expected return is given below:
Expected return = Respective probability × respective return
= (-72 × .09) + (-15 × .16) + (16 × .51) + (35 × .14) + (85 × .10)
= -6.48% -2.4% + 8.16% + 4.9% + 8.5%
= 12.68%
= 12.7%
Hence, the expected return is 12.7%
The above formula should be used for the same.
I will fill in the right answers into the blank:
The income effect of a price change predicts that a fall in
a good's price will increase consumer purchasing power, leading to a(n) increase
in consumption of normal goods.
Asnwers:
fall; increase; increase; normal
Answer:
The answer is: B) Neither Jeff nor Robert has any recognized gain or loss.
Explanation:
Both Jeff and Robert are contributing different assets to form KS Ventures Corporation. Jeff will transfer property at its fair market value ($90,000) and Robert will also transfer property at fair market value ($70,000) plus $20,000 in cash to equal Jeff's contribution. They haven't gained or lost anything, each still has 50% of stock ($90,000) of KS Ventures Corporation.
Answer:
1. 11.90
2. 23.79
Explanation:
How Long Does It Take To Double Your Money?
A=P(1+r/100)^n
where
A=future value($2x say)
P=present value($x say)
r=rate of interest
n=time period.
SOLUTION
A=P(1+r/100)^n
2x=x(1+6/100)^n
Divide both side by x
2=(1+6/100)^n
2=(1.06)^n
Taking log on both sides;
log 2=n*log 1.06
Making n subject of the formular
n=log 2/log 1.06
=11.90 years(Approx).
How Long Does It Take To Quadruple Your Money?
We use the same formula:
A=P(1+r/100)^n
where
A=future value($4x say)
P=present value($x say)
r=rate of interest
n=time period.
SOLUTION
A=P(1+r/100)^n
4x=x(1+6/100)^n
Divide both side by x
4=(1+6/100)^n
4=(1.06)^n
Taking log on both sides;
log 4=n*log 1.06
Making n subject of the formular
Hence n=log 4/log 1.06
=23.79 years(Approx).
Benefits- standing up for your self con- loosing time where you could be making money