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qwelly [4]
3 years ago
12

You recently purchased a stock that is expected to earn 12.6 percent in a booming economy, 8.9 percent in a normal economy and l

ose 5.2 percent in a recessionary economy. Each economic state is equally likely to occur. What is your expected rate of return on this stock?
Business
1 answer:
Arisa [49]3 years ago
7 0

Answer:

r(e) = 0.05433 or 5.433% rounded off to 5.43%

Explanation:

To calculate the expected rate of return of a stock, we take the rate of return under each scenario and multiply it with the probability of that scenario and sum up the answers for each scenario. The formula for expected rate of return can be written as follows,

r(e) = pA * rA  + pB * rB  +  ...  +  pN * rN

Where,

  • p represents the probability of each scenario
  • r represents the return under each scenario

As we have 3 scenarios with equal probability for each scenario, we can say the probability of each scenario is 1/3.

r(e) =  1/3 * 0.126  +  1/3 * 0.089  +  1/3 * -0.052

r(e) = 0.05433 or 5.433% rounded off to 5.43%

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Answer:

The correct answer is lower-class nonwhite.

Explanation:

The lower class is the poorest population segment of human society. It is characterized by having great gaps in its way of life and limitations in terms of access to economic resources. They are usually unemployed people, who do not own their own home or other goods or properties that are essential for living.

To this socioeconomic class belong people with very low educational levels, barely with primary education and some with secondary education. Some casual or independent workers also enter this class. Lower class families do not have good basic services in their homes.

6 0
3 years ago
Plowin' Supply plans to make 22 comma 000 tractors at its plant. Fixed costs are $ 550 comma 000 and variable costs are $ 180 pe
xz_007 [3.2K]

Answer:

$43

Explanation:

The total cost incurred by the company is made of two classes of cost namely; Fixed and variable cost. While the fixed cost is constant, the variable cost is dependent on the number of tractors produced.

A such,

Fixed cost = $550,000

Variable cost = 22000 × $180 = $396,000

Total cost = $550,000 + $396,000

= $946,000

The average cost per tractor is the result of the ratio of the total cost to the number of tractors

average cost per tractor =  $946,000/22,000

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5 0
3 years ago
Coaching is ____.
sergeinik [125]
<span>one on one communication to improve the employee</span>
7 0
3 years ago
Which of the following budgets are needed to calculate unit product costs? Direct labor budget Direct materials budget Cash budg
kodGreya [7K]

Answer:

The following budgets are needed to calculate are as follows:

Direct labor budget

Direct materials budget

Manufacturing overhead budget

Explanation:

The three budgets put together are known as production budget which are as a result of sales budget.

When a company determines its projected sales ,it goes ahead to  prepare its production budget in order to fulfill forecast sales as contained in the sales budget.The quantity to be manufactured is based on the opening inventory for the period, forecast sales quantity as well as the desired ending inventory quantity.

In order to determine production level,the opening inventory is added to forecast sales and desired ending inventory is subtracted to arrive at the estimated production units for the period.

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3 years ago
You sell a stock for $50.00 that was held for 10 years. You earned a return of 8%. What was the original cost of the stock?
Irina18 [472]

Answer:

Original cost of the stock = $23.16

Explanation:

Original cost of the stock = Selling price of stock / ( 1 + r )^n

Original cost of the stock = $50 / (1+8%)^10

Original cost of the stock = $50 / (1.08)^10

Original cost of the stock = $23.16

7 0
3 years ago
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