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pochemuha
3 years ago
5

You are considering purchasing stock S. This stock has an expected return of 12 percent if the economy booms, 8 percent if the e

conomy is normal, and 3 percent if the economy goes into a recessionary period. The overall expected rate of return on this stock will: a. be equal to one-half of 8 percent if there is a 50 percent chance of an economic boom.b. vary inversely with the growth of the economy.c. increase as the probability of a recession increases.d. be independent of the probability of each economic state occurring.e. increase as the probability of a boom economy increases.
Business
1 answer:
Ymorist [56]3 years ago
7 0

Answer:

e. increase as the probability of a boom economy increases.

Explanation:

The most economic growth occurs when the economy is in boom state. This results in the highest rate of return on investments compared to all other states such as normal, recession. In this case, if the probability of boom economy increases, stock S will have an overall increase in expected return; it means that there is higher chance of earning 12% return which is the highest among those in other economy states. This makes choice E correct.

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The following information pertains to Sheridan Company.
DanielleElmas [232]

Answer:

Adjusted Cash Balance at 31 August 2022 = 9654

Explanation:

Bank Reconciliation Statement at August 31, 2022

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Add: Deposit in Transit                                                                  $3010

<u>Deduct: Outstanding Checks                                                        ($694 )</u>

<u>Adjusted Cash Balance                                                                  $9,654</u>

<u />

Cash Balance as per books, August 31,                                        $7374

Add: Receivable collected by bank                                               $2326

<u>Less:Bank Service Charges                                                           ($46)     </u>

<u>Adjusted Cash Balance                                                                  $9,654 </u>

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5 0
3 years ago
MC Qu. 107 The following information is available... The following information is available for a company's utility cost for ope
lianna [129]

Answer:

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Explanation:

Total cost at high activity = $8100

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Variable cost per unit = ($8100 - $3600) / (2400 - 600) = $4500 / 1800 = $2.50

7 0
3 years ago
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Ilia_Sergeevich [38]

Answer:

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Explanation:

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For example Jeremy has identified a research question that relates to a transaction that the client completed several months ago. This is a closed fact situation.

5 0
3 years ago
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Answer:

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4 0
2 years ago
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Mashcka [7]

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4 0
3 years ago
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