Answer:
0.17
Explanation:
The computation of the expected return on investment is shown below:
= (Expected return of the outcome 1 × Probability of the outcome 1) + (Expected return of the outcome 1 × Probability of the outcome 1) + (Expected return of the outcome 1 × Probability of the outcome 1)
= (0.15× 0.50) + (0.25 × 0.30) + (0.10 × 0.20)
= 0.075 + 0.075 + 0.02
= 0.17
Answer:
When demand shocks lead to recessions, it is mainly due to unexpected changes in the:
the inability of government policy to affect demand.
Explanation:
Government has every right to make policies that would strictly affect price, if this is not done and there is inflation of price it would lead to recession.
Answer:
$9.63
Explanation:
Data provided in the question:
Year Annual dividend paid
1 $1.20
2 $1.12
3 $1.12
4 $14.20
Now,
Year Annual dividend paid Present value factor Present value
1 $1.20 0.84246 1.011
2 $1.12 0.84246 0.7949
3 $1.12 0.59793 0.6696
4 $14.20 0.50373 7.1529
===============================================================
Worth of stock = 1.011 + 0.7949 + 0.6696 + 7.1529
= $9.6284 ≈ $9.63
Note:
Present value factor = [ 1 ÷ (1 + 0.187)ⁿ]
here,
n is the year
Answer:
Highly inelastic
Explanation:
Price elasticity of demand is a measure of the demand of a given service or commodity by utilizing it's price change. It can be calculated using the formula;
Price elasticity of demand=%change in quantity demanded/%change in price
%change in quantity demanded=((Final demand-Initial demand)/Initial demand)×100
((299-300)/300)×100=-0.33%
%change in price=12%
12%>0.33%
The change in price is larger than the change in demand, therefor the product is highly inelastic
