Answer:
Ans. The expected rate of return on the Inferior Goods Co. stock is 5.90%
Explanation:
Hi, you just have to multiply the expected earnings by the probability of occurance of a certain event and then add up all the products. Here is the information all organized to be processed.
Item Prob Earn
Booming 20% -6%
Normal 55% 7%
Recession 25% 13%
Ok, now let´s calculate the expected rate of return.
![ExpectedReturn=(0.2*(-0.06))+(0.55*0.07)+(0.25*0.13)](https://tex.z-dn.net/?f=ExpectedReturn%3D%280.2%2A%28-0.06%29%29%2B%280.55%2A0.07%29%2B%280.25%2A0.13%29)
![ExpectedReturn=-0.012+0.039+0.033=0.059](https://tex.z-dn.net/?f=ExpectedReturn%3D-0.012%2B0.039%2B0.033%3D0.059)
So the expected rate of return of the stock is 5.90%
Best of luck.
Traditionally, the formulas used to express a firm's cost of equity are the dividend capitalization model and the capital asset pricing model (CAPM).
Explanation:
Generally, two risk components determine a firm's cost of equity. The first is the systematic risk associated with the broader equity market. All firms are exposed to this risk, and it cannot be mitigated through diversification.
The second risk component is the unsystematic risk associated with the firm in question. This risk, often reflected as beta, a measure of the stock's volatility in relation to the volatility of the broader market, can be mitigated via diversification.
Answer:
1,030
Explanation:
Calculation for what is the exponential smoothing forecast value
Exponential smoothing forecast value = 1,000 + 0.3 x (1,100-1,000)
Exponential smoothing forecast value = 1,000 + 0.3 x (100)
Exponential smoothing forecast value = 1,000 + 30
Exponential smoothing forecast value= 1,030
Therefore the exponential smoothing forecast value will be 1,030
Before the 1930's most government involvement in day-to-day 4 was aimed at the free market system. Hope this helps.
Here's a program called MoveEstimator that prompts the user to accept an estimate of the number of hours of work and miles the move will take and displays the total cost of the move:
- <u>x = int(input("number of hours for the job "))</u>
- y = int(input("number of miles involved "))
- def MoveEstimator(x, y):
- return 200 + 150*x + 2*y
- print(MoveEstimator(x, y))
Computer programs are written by programmers. Writing the 1s and 0s in machine-readable machine language is very difficult, so computer programmers write them in programming languages. The format of the program determines the structure of the course. At AIR, the program format is specific to an academic component with some kind of program of study.
Learn more about A program here:- brainly.com/question/1538272
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