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Korolek [52]
3 years ago
13

A financial analyst, assesses the likelihood of various possible future values of a stock price, assigns the following probabili

ty values to the predicted future price of the stock:
Future price: $40 $50 $65
Probability: 0.5 0.3 0.2

What is the expected value of the future stock price?

a. 16
b. 48
c. 50
d. 33.3
e. 51.6
f. 40
Business
1 answer:
alina1380 [7]3 years ago
8 0

Answer:

b. 48

Explanation:

The computation of the expected value of the future stock price is as follows;

= Respective future price × respective probabilities

= $40 × 0.5 + $50 × 0.3 + $65 × 0.2

= $20 + $15 + $13

= $48

hence, the  expected value of the future stock price is $48

Therefore the correct option is b.

The same is relevant

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3 years ago
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Daniel, Steven, and Chris work as engineers in Connecticut. The demand for engineers starts to decline as their company’s profit
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Answer:

cyclically unemployed

Explanation:

The cyclically unemployed refers to the situation when the economy is in recession period that directly impacts the profits of the company

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4 years ago
John Maynard Keynes created the aggregate expenditures model based primarily on what historical event? Question 9 options: econo
kirill [66]

Answer: Great Depression

Explanation:

The Great Depression was an economic depression that took place worldwide which was as a result of the crash in the stock market. The Great Depression brought about reduction in GDP of countries due to the fall in demand of goods and services.

John Maynard Keynes created the aggregate expenditures model based primarily on the Great Depression. This method is used to calculate the GDP for a country.

6 0
3 years ago
McConnell Corporation has bonds on the market with 14.5 years to maturity, a YTM of 5.3 percent, a par value of $1,000, and a cu
creativ13 [48]

Answer:

5.75%

Explanation:

First, find the coupon payment amount . Using a financial calculator, key in the following inputs for this the bond valuation.

<em>Note: Make adjustment on the rate and time since the coupon payments are made semi-annually i.e 2 times a year</em>.

Maturity of the bond ; N = 14.5*2 = 29

Semi-annual rate ; I/Y = (5.3%/2) = 2.65%

Face value ; FV = 1000

Price of the bond or PV = -1045

then compute semiannual coupon payment ;  CPT PMT = $28.743

Annual coupon rate is therefore = $28.743*2 = $57.486

Coupon rate = coupon payment / face value

Coupon rate = $57.486 / 1000

= 0.05749 or 5.75%

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4 years ago
What stipulation on the use of Star Wars did the<br> federal district court include in its ruling?
tankabanditka [31]

Answer:

C.) The interest groups could only use the phrase for non-profit purposes.

Explanation:

I know for a fact I am right, cause I was built *DIFFERENT*

Have a spectacular day!! :D

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