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BigorU [14]
3 years ago
10

A project has 70% probability of doubling your investment in a year and 30% probability of halving your investment in a year. Wh

at is the expected rate of return on this investment
Business
1 answer:
GalinKa [24]3 years ago
8 0

Answer:

1.55

Explanation:

When the investment is doubled the return would be 100% and when it is halved, the return would be -50%.

Probability Return

70%             2*100 = 200

30%             0.5*100 = 50

Expected Return = Probability of Doubling Investment*Rate of Return on Doubling of Investment + Probability of Halving Investment*Rate of Return on Halving of Investment

Expected Return = 70%*200% + 30%*50%

Expected Return = 0.7*200% + 0.3*50%

Expected Return = 1.4 + 0.15

Expected Return = 1.55

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Answer:

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Explanation:

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4 0
3 years ago
If a taxpayer's pension or annuity includes contributions that were previously included in gross income, the taxpayer may genera
drek231 [11]
If some contributions to your pension or annuity plan were prior combined in gross income, you can omit the part of the distributions from income. You must know the tax-free part when the payments start. The tax-free part normally stays the same each year, even if the amount of the payment changes. Nevertheless, the whole amount of your pension or annuity that you can omit from your income is typically defined by your total cost.
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3 years ago
Question 2: Allocating costs using ABC You have an ABC system with three pools number of cost driver units total cost in the poo
allochka39001 [22]

Answer:

Results are below.

Explanation:

<u>To calculate the activities rates, we need to use the following formula on each pool:</u>

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<u>Now, we can allocate costs to each product:</u>

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Product A:

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8 0
3 years ago
Fill in the blank!! Many products, such as golf clubs, are made with graphite-epoxy resins because it's strong and lightweight.
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I think the answer is E. both supply and demand would increase.
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4 0
3 years ago
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Ilia_Sergeevich [38]

It is true that Costs, also called differential costs, are the additional costs from selecting a certain course of action.

<h3>What is differential costs?</h3>

Differential cost serves as the  difference between the cost of alternative decisions.

Therefore, It is true that Costs, also called differential costs, are the additional costs from selecting a certain course of action and the  cost do take place when a business have several similar options,

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8 0
2 years ago
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