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
aksik [14]
3 years ago
12

Suppose that an investor is considering three alternative strategies: conservative, neutral, or aggressive. If economic conditio

ns get better, then the strategies will return, respectively, 6%, 12%, and 20%. If economic conditions get worse, then the strategies will return, respectively, 4%, 2%, and -8%. If better economic conditions has a probability of only 25%, then using the expected value criterion which alternative would the investor select?
Business
1 answer:
Elan Coil [88]3 years ago
3 0

Answer:

The answer is: Following the expected value criterion the investor should choose indistinctively between the conservative or neutral alternatives.

Explanation:

The formula we use to calculate the expected return value of the different alternatives is:

            ERV = ∑ (expected return x probability of occurrence)

The conservative alternative has an expected return value of of 4.5%

ERV Conservative = (6% x 25%) + (4% x 75%) = 4.5%

The neutral alternative also has an expected return value of of 4.5%

ERV Neutral = (12% x 25%) + (4% x 75%) = 4.5%

The aggressive alternative has an expected return value of of -1%

ERV Aggressive = (20% x 25%) + (-8% x 75%) = -1%

You might be interested in
When a company pays its bill from a plumber for previous services on account:(A) Its debt to equity ratio always decreases. Corr
Daniel [21]
The correct answer is B
8 0
3 years ago
English language learners (ells), who are typically immigrant children, are at a greater risk for lower socioemotional and acade
forsale [732]

A study of the growth of English language learners (ELLs) in first-time kindergarten students (N = 19,890) from kindergarten through eighth grade was conducted.

Growth curve analyses showed that, when other factors were held constant, ELLs continued to improve at a steeper rate on these social/behavioral outcomes than their native English-speaking peers.

In kindergarten, teachers rated ELLs more favorably on approaches to learning, self control, and externalizing behaviors than native English speakers did.

Depending on the grade at which English competence is reached, ELLs and native English speakers achieve reading and math skills differently.

To be more precise, ELLs who were proficient by the time they entered kindergarten kept up with native English speakers in both reading and math initially and over time.

ELLs who were proficient by the time they entered first grade had modest gaps in reading and math achievement compared to native English speakers that either narrowed or persisted over time.

Learning English before entering kindergarten is associated with superior cognitive and behavioral results through the eighth grade for students whose first language is not English.

To learn more about kindergarten here

brainly.com/question/16884560

#SPJ4

8 0
2 years ago
In response to dwindling sales of organic meats, Hain Celestial executives decided to promote the sale of organically grown nuts
3241004551 [841]

Answer:

Product substitute

Explanation:

Product substitute is defined as one that meets similar needs of the consumer. As demand for one of such goods rises the demand of the other tends to fall as the meet similar needs.

In the given scenario organic meats are seen as being substituted by organically grown nuts as a source of protein.

So when Hain Celestial has dwindling sales of organic meats they were considering organically grown nuts as a different product to give to customers

3 0
3 years ago
The following information is available for Moiz Company:________.
notsponge [240]

Answer and Explanation:

1. Interest Revenue $23,000  

 Sales Revenue $510,000  

              To Income Summary $533000

(Being closing of revenues accounts are closed)

2. Income Summary $453,000

  To Sales returns $20,000

      To Sales Discounts  $7,000

     To Cost Of goods sold $310,000

     To Freight out $2,000

      To Advertise Exp $15,000

      To Interest Exp  $19,000

      To Salaries & Wages $55,000

      To Utility  $18,000

      To Depreciation $7,000

(Being closing of expenses accounts are closed)

3. Income Summary $80,000

      To Retained Earning $80,000

(Being profit is recorded)

4. Retained Earning $30,000

        To Dividends  $30,000

(Being closing of dividend is recorded)

8 0
3 years ago
If employees are bonded a. it means that they are not allowed to handle cash b. they have worked for the company for at least 10
Ierofanga [76]

Answer:

c. they have been insured against misappropriation of assets.

Explanation:

A company bonds its employees to protect itself against theft by its workers.  Being bonded means securing the money available to customers if a claim is made against the company. Bonding offers compensation to a business should a loss arise through employee's actions.

The law requires companies that handle cash and cash equivalents such as stocks certificates to bond their employees. A company may choose from the various types of bond insurance in the market. For example, employers may use the fidelity bond to protect against employee theft.

6 0
3 years ago
Other questions:
  • Relatively unknown events are best marketed through
    11·1 answer
  • Chris purchased a 10 year 100 par value bond where 6% coupons are paid semiannually. Cheryl purchased a 100 par value bond where
    11·1 answer
  • Robins typically lay four eggs. Four eggs allow the offspring to be well fed, whereas larger clutches may result in malnourished
    5·1 answer
  • Suppose Community Bank offers to lend you $10,000 for one year at a nominal annual rate of 6.50%, but you must make interest pay
    6·1 answer
  • Reasons for lack of customer care in many organization​
    5·1 answer
  • Rough & Ready Timber Company orally contracts with Shawn for the purchase of five acres of Shawn’s timberland. Shawn makes t
    14·2 answers
  • b. A second approach using the cost method of valuation will also be used to estimate value. Comparing vacant lot sales in the m
    7·1 answer
  • On July 1 the FISHER Shoe Store paid 15,000 to Acme Realty for 6 months rent beginning July 1. Prepaid Rent was debited for the
    14·1 answer
  • For each of the statements below, use the dropdown box to select the response that completes the sentence correctly. Knowledge C
    6·1 answer
  • The first unit of a product took 400 hours to complete. The firm plans to produce 8 units in the first month and 10 units in the
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!