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kotykmax [81]
3 years ago
5

A stock is expected to return 11% in a normal economy, 19% if the economy booms, and lose 8% if the economy moves into a recessi

onary period. Economists predict a 65% chance of a normal economy, a 25% chance of a boom, and a 10% chance of a recession. What is the expected return on the stock
Business
1 answer:
Serjik [45]3 years ago
7 0

Answer:

Expected return  = 50.4%

Explanation:

<em>The expected rate of return is the weighted average of all the possible returns associated with an investment decision. The returns are weighted using the probability associated with their outcomes.</em>

Expected return = WaRa + Wb+Rb + Wn+Rn

W- weight of the outcome, R - return of the outcome

E(R) = 11% ×0.65) + ( 19%× 0.25) + (-8%×0.1)

      = 50.4%

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Clarifying the issues of a problem is the _____ step in the problem solving process. first, second, sixth, or seventh
ololo11 [35]

The second step in the problem solving process is to clarify the issues of a problem.


Answer: The second step.

7 0
3 years ago
Read 2 more answers
you inherit $10,000 with the stipulation that you for the first year the money must be invested in two stocks paying 6% and 11%
Crank

Answer:

At 6% $3,529.412 will be invested

At 11% $6,470.588 will be invested

Explanation:

Let x be the investment for 6% stock

And (10,000-x) is the investment it 11% stock

Let I be interest earned on both investments.

Using the formula

Principal(p)= Interest(I)*Rate(r)*Time(t)

p/RT= I

So considering both investments

x/(6%*1)= (10,000-x)/(11%*1)

x/0.06= (10,000-x)/0.11

Cross-multiply

0.11x= 0.06(10,000-x)

0.11x= 600- 0.06x

Rearranging

0.11x+ 0.06x= 600

0.17x= 600

x= 600/0.17= 3,529.412 amount invested at 6%

Amount invested at 11%= 10,000-3,529.412

= 6,470.588

8 0
3 years ago
Juanita makes $30 an hour at work. She has to take time off work to purchase her dress, so each hour away from work costs her $3
Phoenix [80]

Answer:

Juanita should purchase the suit at the store across town because the total economic cost will be lowest.

Explanation:

three options:

  1. local store 15 minutes away and a price of $114
  2. across town 30 minutes away and a price of $86
  3. neighboring city 1 hour away and a price of $60

Juanita makes $30 per hour at her work, and her purchase decision includes the opportunity cost of lost wages:

total economic cost:

  • local store = $114 + [1/4 hours x 2 (round trip) x $30] + (1/2 hours x $30 spent shopping) = $144
  • across town = $86 + [1/2 hours x 2 (round trip) x $30] + (1/2 hours x $30 spent shopping) = $131
  • neighboring city = $60 + [1 hour x 2 (round trip) x $30] + (1/2 hours x $30 spent shopping) = $135

Juanita should purchase the skirt at the store across town because the total economic cost will be lowest ($131)

Opportunity costs are the benefits lost or extra costs incurred for choosing one activity or investment over another alternative. Economic costs include both accounting costs and opportunity costs.

5 0
3 years ago
The inventory data for an item for November are: Nov. 1 Inventory 20 units at $19 4 Sold 10 units 10 Purchased 30 units at $20 1
SSSSS [86.1K]

Answer:

cost of goods sold = $580

Explanation:

The cost of the goods sold means the cost price of the total sales volume. As the company uses FIFO (First-in, First-out) method and also uses the perpetual inventory system, the cost of goods sold =

Cost of goods sold =

20 units × $19 = $380 (The price is from November 1)

10 units × $20 = $200 (The price is from November 10)

The total cost of goods sold (30 units) = $580

8 0
3 years ago
When a company sponsors motor sports and other​ action-oriented events, it is utilizing the​ ________ mode of communication from
marta [7]
When a company sponsors motor sports and other​ action-oriented events, it is utilizing the <span>events and experiences</span> mode of communication from the marketing communication mix.

When a company is sponsoring an event they are marketing themselves by being part of the event.  They commonly have banners, tables, flyers and commercials that get their brand out by making it knowing they are sponsoring or going to be apart of an event. 
3 0
3 years ago
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