Which of the following represents an opportunity for generating a new product?

There are three economy situations and two stocks Information is as follows Economy Stock A Stock B Booming 0.3 10 20 Neutral 0.

Bumek [7]

Answer:

a) A = 4.50% and B = 2.00%

b) SD for A = 4.15 %

c) Portfolio Return = 3.0%

Explanation:

a) Expected Returns for Both A and B respectively:

In order to calculate the expected returns, let's categorize the given data first.

Economy Probability Stock A Stock B

Booming 0.30 10% 20%

Neutral 0.30 5% 0%

Recession 0.40 0% -10% (not 10%)

So,

Expected Return for Stock A:

A = Sum of (all Probability x Stock A)

A = (0.30 x 0.10) + (0.30 x 0.05) + (0.40 x 0.00)

A = 0.045

A = 4.50 %

Return for Stock B:

B = Sum of all Probability x Stock B

B = (0.30 x 0.20) + (0.30 x 0.00) + (0.40 x -0.10)

B = 0.002

B = 2.0%

b) Standard Deviation /Risk for Stock A:

SD for A = Sum (Square Root (Probability*(Stock A Return - Expected Return of Stock A)²) )

SD for A = $\sqrt{0.30*(0.10-0.045)^2 + 0.30*(0.05-0.045)^2+0.40*(0.00-0.045)^2}$

SD for A = 0.0415

SD for A = 4.15%

c) Portfolio Return Given that:

Value Weight Return

Stock A 4000 0.4 4.50%

Stock B 6000 0.6 2.0%

10000

Portfolio Return = Sum of ( Weight x Return)

= (0.4 x 0.045) + (0.6 x 0.02)

= 0.03

Portfolio Return = 3%

6 0

3 years ago

American express and discover card are examples of open loop systems. a. True b. False

PtichkaEL [24]

A. True
Btw that's a picture of me.

6 0

3 years ago

Why might a person assume the Mr. White could be doing well financially

defon

$\huge\color{purple}{\mathbb{ANSWER:}}$

Mr. White was the third and final owner of the talisman in W. W. Jacobs' short story "The Monkey's Paw." He plucked it from the fireplace when the previous owner, Sergeant Major Morris, tossed it there to burn and end the chain of misfortune that came with it. He is motivated mostly by curiosity, since he seems happy with his life and is financially secure.

Mr. White took the paw from his pocket and eyed it dubiously. "I don't know what to wish for, and that's a fact," he said slowly. "It seems to me I've got all I want."

<h2>Hope it helps!! </h2>

4 0

3 years ago

Ritchie Manufacturing Company makes a product that it sells for $200 per unit. The company incurs variable manufacturing costs o

NARA [144]

Answer :

Break even units = 10,500

Break even amount = $2,100,000

Explanation :

As per the data given in the question,

a) Break even units = Fixed expense ÷ CM per unit b ÷ (a - c)

= ($466,000 + $269,000) ÷ ($200 - $110 - $20)

= 10,500 units

b) Break even amount = b ÷ (a ÷ c)

= ($466,000 + $269,000) ÷ ($70 ÷ $200)

= $2,100,000

Contribution margin ratio = Contribution margin ÷ Selling price per unit × 100

where,

Contribution margin = Selling price per unit - variable expenses per unit

c) CM per unit Break even units = Fixed expense ÷ Cm per unit

= $735,000 ÷ $70

= 10,500 units

Break even dollars = Fixed expense ÷ Contribution margin ratio

= $735,000 ÷ 0.35

= $2,100,000

d) Contribution margin income statement:

Sales = 10,500 × $200 = $2,100,000

Less Variable expenses 10,500 × ($110+$20) = $1,365,000

Contribution margin $735,000

Less Fixed Expense $735,000

Net Operating Income = $0

6 0

3 years ago

list 4 stages of development impacting the airline industry and briefly describe how each has impacted the future direction of t

PolarNik [594]

The 4 stages of development that impacted the Airline Industry are:-

1. Regulation: Strict government control of fares, routes, and entry into markets Regulation resulted from tight ownership control of fares, limited competition on chosen routes, a small market served, a low frequency of city connections, high fares, government bailouts for air carriers, and incentives to increase airline profitability

2. Liberalization: reducing governmental control, increasing bilateral agreements, expanding into new markets, diversifying into new goods, and specialising in specialised markets.

3. Deregulation results in less airfare, improved service, and no government regulation of the market.

4. Re-regulation: Prevent predatory pricing by regulating prices; prohibiting strikes under the Railway Labor Act; updating the air traffic control system to reduce delays; and encouraging development, consolidation, and concentration.

To Learn more about Airline Industry, Click the links.

brainly.com/question/14923148

brainly.com/question/14989240

#SPJ4

6 0

1 year ago