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3 years ago

7

Your investment has a 20% chance of earning a 30% rate of return, a 50% chance of earning a 10% rate of return, and a 30% chance

of losing 6%. What is your expected return on this investment

1 answer:

stellarik [79]3 years ago

6 0

Answer:

9.2%

Explanation:

expected return of the investment = potential return x chance of each return happening

Expected return of the investment:

20% chance of occurring x 30% potential return = 0.2 x 30% = 6%
50% chance of occurring x 10% potential return = 0.5 x 10% = 5%

30% chance of occurring x -6% potential return = 0.3 x -6% = -1.8%
total expected return = 9.2%

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3 years ago

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3 years ago

Bricker Enterprises purchased a machine for $100,000 on October 1, 2012. The estimated service life is ten years with a $10,000

Gekata [30.6K]

Answer:

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Explanation:

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There are various methods to compute depreciation of a long term asset. Such as - Straight Line Method, Written Down value method, Double declining method, Units of production method,etc.

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Since, in the question the machine is purchased on October 1. So, from October 1 to December 31, there are 3 months. So we calculate the depreciation amount for 3 months.

Assume, the books of accounts is closed in December 31.

Thus,

Depreciation amount = ($100,000 - $10,000) ÷ 10 years

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3 years ago

Using the data below, determine the ending inventory amount assuming the weighted average method with a periodic inventory syste

Gelneren [198K]

Answer:

Correct Choice is $ 1200.

Explanation:

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Putting the values in equation (I), we get ;

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3 years ago