Answer:
a. 8%
Explanation:
Expected Return = [(Return*Probability)+(Return*Probability)+(Return*Probability) * 100%]
Expected Return = [{(15%*0.2)+(10%*0.2)+(5%*0.6)} * 100]%
Expected Return = [{(0.15*0.2)+(0.1*0.2)+(0.05*0.6)} * 100]%
Expected Return = [{0.03+0.02+0.03} * 100]%
Expected Return = [{0.08 * 100}]%
Expected Return = 8%
So, Liqin's expected return for fixing up and selling the Corvette is 8%.
Answer:
D. The economy is almost always at full employmeny.
Explanation:
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Here is a sizing chart from the Kohl’s website and they sell ASICS
Answer:
D.
Municipal bond because the equivalent taxable yield is 6.6%
Explanation:
we should make the important difference that municipal bonds are tax free while corporate bonds don't.
Therefore we should solve for the after tax rate fo the corporate bond:

The corporate bond as a yield of 4.5% after taxes which is lower than the municipal bond. This make it more attractive
We can also solve for the pre-tax rate of the municipal bond:

the municipal bonds would be equivalent to a 6.6% corporate bonds.
This makes option D correct.
The benefits value of employees pay is 10- 20