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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.

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Answer:

b. JuneCorp can contest the legality of the law if all three scrutiny tests determine that the law is necessary.

Explanation:

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7 0
3 years ago
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Answer:

The correct answer is True.

Explanation:

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Otherwise, an excess of aggregate demand causes prices to rise and inflation is generated.

Well, given an excess of aggregate demand, with the intention of getting a price drop, the money supply will have to be reduced and interest rates increased, measures of a restrictive monetary policy.

The application of a restrictive monetary policy contributes to lower production and reduce inflation, although there is a possibility that it will generate a decrease in employment.

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Answer:

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