Correct Question
You are given the following probability distribution of returns for stock IN A probability of 0.2 that the return will be 12 a probability of 0.35 that the return will be 18 a probability of 0.3 that the return will be 10 and a probability of 0.15 that the return will be 10 What is the expected return of this stock
Answer:
expected return of this stock = 13.2%
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
=(0.2× 12%) + (0.35× 18%) + (0.30×10%) + (0.15 × 10%)
= 13.2%
A bond has a yield to maturity of 9.51 percent. If the inflation rate is 2.2 percent, The real rate of return on the bond is 84.3%
Real Rate = (1+Nominal Rate) / (1+Inflation rate) - 1
= (1+0.0902) / (1+0.032) - 1
= 1.843023256 - 1
= 0.843023256 or 84.3%
- The annual percentage of profit made on an investment, after accounting for inflation, is the real rate of return. Since this is the case, the real rate of return accurately depicts the true purchasing power of a given sum of money over time.
- The amount of a nominal return that is real return can be determined by the investor by adjusting the nominal return to account for inflation.
- Investors who want to calculate real returns on their money or choose from a variety of investment options must also take into account the impact of other factors, such as taxes and investing fees, in addition to accounting for inflation.
- Real rates of return are lower than nominal rates of return, with the exception of periods of deflation or zero inflation.
Learn more about Real rates of return, here
brainly.com/question/17327471
#SPJ4
Answer: Investing activities
Explanation:
The appropriate section in the statement of cash flows for reporting the purchase of equipment for cash is referred to as the investing activities.
The operating activities has to do with the reporting of cash payment for wages. The financing activities has to do with reporting issuance cash for the common stock.
<span>Understanding the tasks required of the position is a necessity, as are any certifications that the job may need. In addition, listing references who have experience in the same or related fields can give an employer additional information that could bolster one's value in their eyes.</span>
Think about targeting. ...
Remember, content is still king. ...
Personalise adverts to increase engagement. ...
Create dynamic display adverts. ...
Use retargeting effectively to win back site visitors. ...
Advertise in real time to aid conversion. ...
Back up your display advertising in other channels.