1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
riadik2000 [5.3K]
2 years ago
7

A stock is expected to return 8% in a normal economy, 12% if the economy booms, and lose 3% if the economy moves into a recessio

nary period. Economists predict a 56% chance of a normal economy, a 25% chance of a boom, and a 19% chance of a recession. The expected return on the stock is __%.
Business
1 answer:
JulijaS [17]2 years ago
8 0

Answer: 6.91%

Explanation:

Expected return = Sum of (Probability of state of economy * Return given state of economy)

= (56% * 8%) + (12% * 25%) + (19% * -3%)

= 4.48% + 3% - 0.57%

= 6.91%

You might be interested in
What is the difference between SG&A costs and Indirect costs?
nlexa [21]

SG&A is an initialism used in accounting to refer to Selling, General and Administrative Expenses, which is a major non-production cost presented in an income statement.

Indirect costs are costs that are not directly accountable to a cost object. Indirect costs may be either fixed or variable. Indirect costs include administration, personnel and security costs. These are those costs which are not directly related to production. Some indirect costs may be overhead.

6 0
2 years ago
The skills, abilities and other characteristics needed to perform a job are detailed in a select one:
anzhelika [568]
The skills and abilities is called A. Job description
8 0
3 years ago
What is from utility
ella [17]

Explanation:

Refers to how well a product or service meets the customer's needs

3 0
3 years ago
An investment banker agrees to underwrite an issue of 10 million shares of stock for TWResearch, Inc. on a firm commitment basis
Mrac [35]

Answer:

$ 7.5 million

Explanation:

The investment bank will have a loss which = ( 9.75 - 10.50 ) × 10 million = $ - 7.5 million

7 0
3 years ago
Read 2 more answers
Fatima is struggling in her job and is experiencing increased dissatisfaction. She related to you that her manager has been unfa
oee [108]

Answer:

Cognitive dissonance

Explanation:

Cognitive dissonance is a psychological notion when an individual experiences thoughts and emotions that are not consistent (no matter the environment). In this example, it was expected from Fatima to quit her job (since she hated the manager). In spite of that, she continued to work. That caused the cognitive dissonance in her behavior, as she changed her attitude.

6 0
3 years ago
Other questions:
  • When a business association holds itself out to others as being a corporation when it has made no attempt to , the firm normally
    12·2 answers
  • Stephanie bought a package of pencils for $1.75 and some erasers that cost $0.25 each. She paid a total of $4.25 for these items
    11·1 answer
  • How many international airports are in cote d'ivoire?
    8·1 answer
  • A government bond with a coupon rate of 5% makes semiannual coupon payments on January 7 and July 7 of each year. The Wall Stree
    11·1 answer
  • The terms “production-oriented leaders” and “employee-oriented leaders” are associated with which research effort to identify th
    7·1 answer
  • What are the pros and cons of being a single decision-maker?
    13·2 answers
  • Paying attention to the trends that might impact your future career is called
    14·1 answer
  • According to Benjamin Lang what is the hardest thing about being an entrepreneur
    9·1 answer
  • Determining Missing Items from Computations Data for the California, Midwest, Northwest, and Texas divisions of Firefly Industri
    9·1 answer
  • Freeze Ice Cream Shop sells its specialty shakes for $3.50 each. In the summer months, the shop typically sells 200 shakes a day
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!