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3 years ago

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You recently purchased a stock that is expected to earn 20 percent in a booming economy, 15 percent in a normal economy, and los

e 2 percent in a recessionary economy. There is 21 percent probability of a boom, 72 percent chance of a normal economy, and 7 percent chance of a recession. What is your expected rate of return on this stock

1 answer:

OlgaM077 [116]3 years ago

3 0

Answer:

rE = 0.1486 or 14.86%

Explanation:

The expected rate of return of a stock is the mean return that is expected to be earned by the stock considering the different scenarios that can occur, the return in these scenarios and the probability of the occurrence of these scenarios. The formula for expected rate of return of stock is,

rE = pA * rA + pB * rB + ... + pN * rN

Where,

pA, pB, ... represents the probability that scenario A, B and so on will occur or the probability of each scenario
rA, rB, ... represents the return in scenario A, B and so on

rE = 0.21 * 0.2 + 0.72 * 0.15 + 0.07 * -0.02

rE = 0.1486 or 14.86%

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A company’s total monthly sales (in millions of dollars) t months from now are given by:

Elina [12.6K]

Answer:

a) $\frac{dS}{dt}=S'(t)= 2(0.5) t +3 = t+3$

b) $S(4) = 0.5*(4^2) +3(4) -5=15 million$

c) For this case we have the total sales $ 15 millions after t =4 months

d) $S'(4) = 4+3 = 7 million$

e) This value represent the increase in the amount of sales in millions after t=4 months

Explanation:

For this case we have the following function for the sales

$S(t) = 0.5 t^2 +3t -5$

Part a

For this case we want to find the derivate of S respect to t and we got:

$\frac{dS}{dt}=S'(t)= 2(0.5) t +3 = t+3$

Part b

For this case we want to find the value of S when t = 4 so if we replace we got:

$S(4) = 0.5*(4^2) +3(4) -5=15 million$

Part c

For this case we have the total sales $ 15 millions after t =4 months

Part d

For this case we just need to replace t=4 in the derivate and we got:

$S'(4) = 4+3 = 7 million$

Part e

This value represent the increase in the amount of sales in millions after t=4 months

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3 years ago

Jim is the new manager of operations at Springfield Motors. To his dismay, he finds the employees coming in late to work, taking

alisha [4.7K]

Answer:

The correct answer is letter "B": Positive reinforcement and punishment.

Explanation:

In the Operant Conditioning Method proposed by B.F. Skinner (1904-1990), positive reinforcement refers to the set of actions individuals do to increase the behavior of other individuals. On the other hand, positive punishment aims to decrease behaviors in individuals by prompting undesirable stimuli.

Thus, <em>Jim is implementing positive reinforcement through incentives for workers meeting certain corporate goals and positive punishment by withholding those incentives from employees who get late, take long breaks or act unprofessionally</em>.

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2 years ago

On october 31, 2009, sky co. borrowed $16 million cash and issued a 7-month, noninterest-bearing note. the loan was made by star

mash [69]

Answer: Sky's effective interest rate on this loan is 8.39%.

In this question, we assume that interest is compounded annually.

Since Sky issues a non-interest bearing note, Star Finance will deduct 7 months' interest at 8% on the Face Value of the loan and pay the rest as principal to Sky.

Face value of the note $16 million

Discount Rate p.a 8%

Tenure of the note 7 months

$Discount on Note = Face Value * Discount Rate * \frac{Tenure in months}{Months in a year}$

$Discount on Note = 16 * 0.08 * \frac{7}{12}$

$Discount on Note = 0.746666667million$

[tex]Loan Amount received by Sky = Face Value - Discount on note[/tex]

$Loan Amount received by Sky = 16 - 0.746666667$

$Loan Amount received by Sky = 15.25333333 million$

So, Sky pays an interest of 0.746666667 on a sum of 15.25333333 for 7 months. This works out to a seven month interest of:

$Seven month Interest Rate = \frac{Interest}{Loan amount}$

$Seven month Interest Rate = \frac{0.746666667}{15.25333333}$

$Seven month Interest Rate = 0.048951049$

From this we can work out the effective interest rate for Sky as follows:

$Sky's Effective Interest Rate = Seven month interest rate * \frac{12}{7}$

$Sky's Effective Interest Rate = 0.048951049* \frac{12}{7}$

$Sky's Effective Interest Rate = 0.083916084$

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3 years ago

Scribners Corporation produces fine papers in three production departments—Pulping, Drying, and Finishing. In the Pulping Depart

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Answer:

a. costs of production Pulping: 165000 conversion: 159000

b. Cost per equivalent unit Pulping: 0.65 conversion: 0.20

c. cost of units completed and transferred out: Pulping: 102050 conversion: 31400 Total: 133450

d. Cost of reconciliation:

Cost of beginning in process inventory (4800 + 500) = 5300

Costs added to production during the period (102450 + 31800) =134250

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3 years ago

Monty loaned his friend Ned $12,000 three years ago. Ned signed a note and made payments on the loan. Last year, when the remain

irinina [24]

Answer:

$ 6,600

Explanation:

Monty should $\text{includ}$ e up to $\$ 8,100$ in the gross account but to an extent of the tax benefit in the previous year. Since the debt is a non-business debt, the amount of $\$ 9,000$ would be reported as the short term business capital loss.

In the previous year, Monty had a capital gain of $\$ 3,600$ and $\$33,250$ as taxable income.

Therefore, $ 3,600 + $ 3,000 = $ 6,600

So $ 6,600 out of $ 9,000 loss produced the tax benefit. Therefore, only $\$6,000$ can be included in the gross income of Monty for this year.

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3 years ago