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Stolb23 [73]
3 years ago
13

Suppose a stock will have a return of -10% during a recession, and a return of 20% with normal market condition. If over the nex

t year, the chance of recession is 40%, and the chance of normal condition is 60%. The stock's expected return next year is ______ %.
Business
1 answer:
Fynjy0 [20]3 years ago
6 0

Answer: 8%

Explanation:

Expected return is a weighted average of the different returns that a stock will have in different economic conditions.

This stock's expected return is;

= (Probability Economic state * Return given economic state) + (Probability Economic state b * Return given economic state b)

= ( 40% * -10%) + (20% * 60%)

= 8%

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When is owning a car a better option than leasing a car?
earnstyle [38]
You can sell it later. if you lease, you are paying money for someone else's car. say you can buy a car for 20thousand or lease for 1000 per month. after 20months, you would have paid the exact same amount, except if you bought the car, you now have an asset tht can be sold.
6 0
3 years ago
(a) (i) Define the term "Green Revolution" as used during the period 1945 to 1985. (ii) Explain the principal agricultural pract
Nimfa-mama [501]

Answer:

(a) (i) Define the term "Green Revolution" as used during the period 1945 to 1985.

  • The use of modern agricultural techniques became widespread around many regions in the world. This led to higher yields through the use of fertilizers, pesticides, genetically modified seeds and mechanical machinery.  

(ii) Explain the principal agricultural practices/technologies associated with the green revolution.

  • extensive use of fertilizers, pesticides, genetically modified seeds and mechanical machinery.  

(iii) Name TWO regions, in different parts of the world, where the green revolution has had a significant impact on crop yields.

  • In North America, Mexican food production increased and they stopped importing food. Although currently that has reversed, and it is importing even more food than before.
  • In Brazil, agricultural production increased dramatically. Both total farmed area and yields have continued to increase in the past years becoming a threat to the amazon basin.

(b) Identify and discuss TWO social, political, or cultural conditions necessary for the success of the agricultural practices/technologies of the green revolution.

  • Emigration from rural areas to urban areas which resulted in a rapid expansion of urban centers. Since less labor was needed in farms, many people left rural areas due to lack of jobs.
  • People started accepting genetically modified crops, which were not well accepted at first. A lot of money was invested in research and development of new seeds, fertilizers and pesticides.

(c) Identify and discuss TWO significant economic or ecological factors that may limit the long-term success of the agricultural practices/technologies of the green revolution.

  • Many new agricultural techniques have resulted in a decrease of soil fertility. In many places crops cannot grow unless a lot of fertilizer is used.
  • Countries were the green revolution was originally successful, like Mexico (where it started), have reduced the total area dedicated to crops. As the yields increased, the price of food started to decrease and many small farms could not keep operating.  
4 0
4 years ago
In two or three sentences, describe how you would use some of the budgeting tools to help manage your money.
Bas_tet [7]

Answer:

Budgeting tools provide notifications and reminders to help us keep track of our spending and savings.

Explanation:

We may use a budgeting program to keep track of how much we spend. Budgeting tools can assist us in reducing undesirable and unneeded spending. It can also help us be more disciplined with our spending and save more money. We may set up notifications or reminders to help us keep track of our spending.

5 0
2 years ago
A project requires an initial investment of $10 million today. If the cost of capital exceeds the project IRR, then the project
xz_007 [3.2K]

Answer:

Negative NPV.

Explanation:

present value of cost exceeds present value of revenue that is been assumed in the investment plan of the said company/firm.

Net Present Value describes one of the discounted techniques of cash flow used in capital budget to determining the viability of a project or an investment. It is seen to have a huge difference between the present flow of the firms; which is cash inflows and the present value of cash outflows over a period of time. Experts has tagged its primary advantage to be that it is seen to considers the concept of the time value of money.

3 0
3 years ago
In preparing a statement of cash flows using the indirect​method, the Depreciation Expense​ ________
motikmotik

Answer:B -

Explanation:Depreciation is added back as an adjustment to the net income in the operating activities section.

8 0
3 years ago
Read 2 more answers
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