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
FinnZ [79.3K]
3 years ago
7

Suppose Microsoft stock will provide either a return of 10 or 20 percent over the next year and that the probability of the form

er outcome is 0.25 while the probability of the latter is 0.75. If the utility an investor derives from a 10 percent return on Microsoft stock is 200 and the utility the investor derives from a 20 percent return is 400, the investor's expected utility from holding Microsoft stock is _____.
Business
1 answer:
nignag [31]3 years ago
5 0

Answer:

The correct answer is b. 350.

Explanation:

To calculate the expected profit, we use the data from the statement:

10% Yield = 25% Probability

20% Yield = 75% Probability

Profit 10% = 200 * 25%

Profit 20% = 400 * 75%

TOTAL 30% = 50 + 300 = 350

What was done was multiply the percentages of profit vs. the expected return for each group of actions. The sum of both is the total expected by investors as Microsoft profits.

You might be interested in
On June 7, Pixer Co. sells $1500 of merchandise to Jasmine Co. on account. Jasmine Co. pays for this merchandise on June 21. a.
Musya8 [376]

Answer:

a.

Debit Accounts Receivable $1,500

Credit Sales $1,500

b.

Debit Cash $1,500

Credit Accounts Receivable $1,500

Explanation:

On June 7, Pixer Co. sells $1500 of merchandise to Jasmine Co. on account.

Pixer's books records the sale by the entry:

Debit Accounts Receivable $1,500

Credit Sales $1,500

On June 21, Jasmine Co. pays for this merchandise. Pixer's books records the receipt of payment by the entry:

Debit Cash $1,500

Credit Accounts Receivable $1,500

7 0
3 years ago
Operating costs incurred by a manufacturing company become either (1) part of the cost of inventory to be expensed as cost of go
Lana71 [14]

Sales salaries are expensed at the time they are incurred.

In 2020, the average sales representative's salary was $73,500. In 2020, the average salaries for comparable jobs were $147,580 for a sales manager, $69,100 for an insurance salesman, $62,990 for a realtor, and $30,940 for a retail salesperson yes you can be a millionaire or billionaire as a seller.

Sales salaries careers are well paid and he ranks third on this list of high-paying jobs without a degree. A salesperson's revenue is directly tied to their sales performance. This means that sales positions have excellent earning potential. Working in sales can be incredibly stressful.

Learn more about Sales salaries at

brainly.com/question/24825618

#SPJ4

4 0
1 year ago
Cadillac is preparing to build a new assembly plant in the United States. Although it would be slightly cheaper to build cars in
il63 [147K]

Answer:

A

Explanation:

Cadillac is responding to one of the geographic demographic trends in the United States, which has been migration into the Sun Belt. Building a plant in Louisiana, which is in the Sun Belt, would greatly reduce transportation cost, compared to a plant in Michigan.

4 0
2 years ago
Suppose your manager wanted you to copy two other managers on the survey email to your coworker. Where would you put the manager
liberstina [14]

Answer: Idk :\ good luck tho

3 0
3 years ago
Investigate any Five criteria that the project must demonstrates
Andru [333]

The project must demonstrate, one, the problem you are trying to solve. Two, the solution of the problem, how innovative it is and compelling. Three, what did you learn throughout the project. Four, accuracy of the conclusion of the project. And lastly, how were you able to effectively present and demonstrate the project to your audience.

4 0
3 years ago
Other questions:
  • Alex Company prepares its statement of cash flows using the direct method for operating activities. For the year ended December
    11·1 answer
  • Analysis to determine how well the government performs its roles in the market economy and explore the​ trade-offs associated wi
    6·1 answer
  • Young Company budgets sales of $112,900,000, fixed costs of $25,000,000, and variable costs of $66,611,000. What is the contribu
    14·1 answer
  • The range rule of thumb roughly estimates the standard deviation of a data set as​ _______.
    11·1 answer
  • Your Economics instructor assigns your class to investigate factors associated with the gross domestic product (GDP) of nations.
    5·1 answer
  • Talks-A-Lot, Inc. sells cell phones to customers and expects that 10% of phones sold will be returned for repair under its warra
    7·1 answer
  • Which of the following does not describe a trial balance? a. Proves that all transactions have been recorded b. Proves the mathe
    15·1 answer
  • What is a major advantage of globalization?
    8·1 answer
  • Delisa Corporation has two divisions: Division L and Division Q. Data from the most recent month appear below: Total Company Div
    11·1 answer
  • choose the correct term for each of the following descriptions. expenditure on research and development
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!