Answer:
market premium = 0,0781 = 7.81%
Explanation:
We have to calculate the market return and then calcualte the premium as the difference between the expected return on the market and the risk-free rate:
We multiply each outcome by the stock weight. and then for the probability of occurence of that state of economy
Calculations for boom:
Change of boom x (weighted outcome A + weighted outcome B + weighted outcome C)
0.25 x (0.45 x 0.15 + 0.45 0.27 + 0.1 x 0.05) = 0.05
![\left[\begin{array}{cccccc}Stock&&B&A&C&Totals\\Weights&&0,45&0,45&0,1&&Boom&0,25&0,15&0,27&0,11&0,05&Normal&0,65&0,11&0,14&0,09&0,078975&bust&0,1&-0,04&-0,19&0,05&-0,00985&&&&&return&0,119125&\end{array}\right]](https://tex.z-dn.net/?f=%5Cleft%5B%5Cbegin%7Barray%7D%7Bcccccc%7DStock%26%26B%26A%26C%26Totals%5C%5CWeights%26%260%2C45%260%2C45%260%2C1%26%26Boom%260%2C25%260%2C15%260%2C27%260%2C11%260%2C05%26Normal%260%2C65%260%2C11%260%2C14%260%2C09%260%2C078975%26bust%260%2C1%26-0%2C04%26-0%2C19%260%2C05%26-0%2C00985%26%26%26%26%26return%260%2C119125%26%5Cend%7Barray%7D%5Cright%5D)
market expected return 0,1191
Market premium: 0,1191 - 0,041 = 0,0781
Answer:
Results are below.
Explanation:
<u>The opportunity cost is the amount of money that you won't earn when choosing one option over another. </u>In this case, one option makes you expend money and the other earn money.
Opportunity cost= 12*4 + 25
Opportunity cost= $73
<u>Now, the total cost incorporated what you will expend in Six Flags:</u>
Total cost= 65 + 40 + 73
Total cost= $178
B. Avoid gossip
Getting along with team means being yourself and not gossiping with others.
C is not the answer because you want to make sure you are aware of complaints.
D is not the answer because when you give gifts, sometimes people can take advantage of you because they know you want to get along with them
A is not the answer because to get along and work together you have to share ideas
