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
bogdanovich [222]
3 years ago
12

An analyst is considering an investment in Treetops Inc. and has gathered the following information. What is the expected return

for a share of the firm's stock?
State of the Economy Probability of the State Conditional Expected Return Treetops Inc
Recession 20 -20%
Steady 40 10%
Boom 40 35%
a. 14.00%
b. 5.00%
c. 8.33%
d. 625%
Business
1 answer:
lesantik [10]3 years ago
8 0

Answer:

Expected Return =

Recession  = ( 20/100)* 20%   =  4%

Steady      =   (40/100)*10%      =  4%

Boom       =   ( 40/100)  *  35%   =<u>  14%</u>

         Expected Return =         <u>   22%</u>

there is no answer in the option. The correct answer is 22%.

Explanation:

Expected return of share is the summation of probability multiply by the return expected in a situation of the economy.

You might be interested in
The table below lists the insurance options offered by AA Auto Insurance. Calculate the monthly payment for an insurance plan in
Gala2k [10]

The selection of the best answer from the choices provided for an insurance premium offered by the AA Auto Insurance is <em>a. $50. 04</em>.

Insurance coverage is a service offered by an insurer (insurance company) to the insured.  If the assured suffers some financial losses., the insurer reinstates the assured to their financial position before the event. For rendering the service, the insurance company collects from the insured some amount, monthly, quarterly, or annual charges called a premium.

Thus, based on the options given, the best insurance premium is <em>a. $50.04.</em>

Learn more about calculating the monthly insurance premium here: brainly.com/question/25280754 and brainly.com/question/19655618

8 0
2 years ago
Read 2 more answers
When the economy is at full​ employment, A. the unemployment rate is greater than zero. B. all remaining unemployment is either
Andrej [43]

Answer:

D. All of the above.

Explanation:

Full employment describes an economic situation where every able and willing worker is employed. It represents a situation where the highest possibles numbers of unskilled and skilled people are in employment. In practice, full employment is when the economy attains the optimal levels of unemployment.

At full employment, the unemployment rate will be above zero percent. The reason is that the economy will always have as frictional unemployment. Frictional unemployment is the time it takes for an individual to find their ideal job. Structural and frictional unemployment contribute about 2 to 3 percent of unemployment in the economy. Economists thus consider a 3  percent unemployment as full employment.

3 0
2 years ago
Irene wants to start a business selling t-shirts. irene's top priority is that she alone has complete control over management de
antoniya [11.8K]

The answer is LLC or also known as Limited Liability Company. This type of hybrid legal entity has the characteristic of mixed characteristics of a partnership, sole proprietorship and even a company in which they have a limited liability that could also be similar to shareholders in a corporation.

3 0
3 years ago
Many owners of consulting companies took their own skills and launches businesses by selling those skills to other companies who
Juli2301 [7.4K]

Answer:

education and expertise

Explanation:

Based on the scenario being described within the question it can be said that this is an example of education and expertise. By learning a skill or trade and gaining experience by continuously practicing and improving those skills anyone can sell those skills to other individual's or company's that require those skills but do not possess them. Such as the individuals in this scenario did.

3 0
2 years ago
On average, LB Inc. receives 138 payments each day with an average value of $42 each. These payments clear the bank in an averag
Oxana [17]

Answer: c) $7,535

Explanation:

The Collection Float refers to the time that it takes for a deposited check to become available to the account owner after the check has been deposited.

The Average amount is calculated thus;

= No. of payments * Clearing days * average value of payment

= 138 * 1.3 * 42

= $7,535

6 0
2 years ago
Other questions:
  • Which of the following is NOT true about organizational processes? Select one: a. They are only found at the top hierarchy level
    11·1 answer
  • Planning provides __________________ for controlling.
    6·2 answers
  • _____ refer(s) to the act of taking a job traditionally performed by a designated agent (usually an employee) and outsourcing it
    9·1 answer
  • Healthy Foods Inc. sells 60-pound bags of grapes to the military for $15 a bag. The fixed costs of this operation are $90,000, w
    12·1 answer
  • 11) A company knows that they will sell 80,000 cases of #2 Pencils at a steady rate over the course of the next year. It costs t
    12·1 answer
  • Which of the following best describes a dividend? ​
    10·1 answer
  • Anna decides to add new sales representatives and increase advertising to increase sales in her existing market for her current
    7·1 answer
  • What is implication for the Government in the tax policy ?
    12·2 answers
  • T or F #7 QUICK
    6·1 answer
  • Kelia, the owner of a Lebanese factory that produces electrical converters, recently learned that the EU will begin taxing all e
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!