Answer and Explanation:
The computation is shown below:
a. For expected return
As we know that
Expected return = Probability × Rate of return
The same formula applies for all of the given stock
For Boom it is
= 0.4(0.21) + 0.4(0.36) + 0.2(0.55)
= 0.33
For Normal it is
= 0.4(0.17) + 0.4(0.13) + 0.2(0.09)
= 0.13
For Bust
= 0.4(0.00) + 0.4(-0.28) + 0.2(-0.45)
= - 0.20
So, the expected rate of return is
= 0.25(0.33) + 0.60(0.13) + 0.15(-0.20)
= 0.1305
Now the variance is
= 0.25 × (0.33 - 0.1305)^2 + 0.60 × (0.13 - 0.1305)^2+ 0.15 × (-0.20 – 0.1305)^2
= 0.053
Now the standard deviation is
= [0.053]^1/2
= 0.23
b. Risk premium is
= E(Rp) – Rf
= 0.1305 - 0.038
= 0.0925
c. Expected real return is
= 0.1305 - 0.035
= 0.0955
The Expected real risk premium is
= risk premium - inflation rate
= 0.0955 - 0.035
= 0.0605
We simply applied the above formulas
This means that the research shows that 95% of the yield is between 118 to 130 bushels per acre. The mean is 124 bushels per acre and the margin of error is 6 bushels per acre.
<h3>
Confidence interval</h3>
Given that 95% confidence interval for the true mean yield is 118 to 130 bushels per acre.
This means that the research shows that 95% of the yield is between 118 to 130 bushels per acre. The mean is 124 bushels per acre and the margin of error is 6 bushels per acre.
Hence:
μ ± E = (118, 130)
where μ is mean and E is margin of error
μ - E = 118 (1)
Also:
μ + E = 130 (2)
From both equations:
μ = 124, E = 6
The mean is 124 bushels per acre and the margin of error is 6 bushels per acre.
Find out more on Confidence interval at: brainly.com/question/15712887
Answer:
Tell and Vorn
Explanation:
Based on the information given Lott will most likely prevail against TELL and VORN reason been that we were told that both TELL and VORN entered into an agreement on January 1 which means that both of them will be responsible for the DELINQUENT TAXES which has not been paid because Vorn occupy the building that was leased out to Tell from Lott Corp in exchange for the amount of $600 which will be monthly paid by Vorn to Tell, which means that in a situation were the taxes is said to be DELINQUENT TAXES in which neither of them paid the building's real estate taxes, Lott will most likely prevail against both TELL and VORN.
<span>Utility gained with each individual unit of a good that you purchase is called </span>a. marginal utility
This is of high importance because marginal utilities are used to determine how many items a consumer is willing to buy.