Malone Imports stock should return 12 percent in a boom, 10 percent in a normal economy, and 2 percent in a recession. The proba
bilities of a boom, normal economy, and recession are 5 percent, 85 percent, and 10 percent, respectively. What is the variance of the returns on this stock? Group of answer choices
For computing the variance, first we have to determine the expected return which is shown below:
= (Expected return of the boom × weightage of boom) + (expected return of the normal economy × weightage of normal economy) + (expected return of the recession × weightage of recession)
measure of how many times an event is likely to occur within "X" period of time. the closest answer is letter B. Example if the fastfood had an average of 500 customer every Wednesday what is the probability that 700 customers will come every Wednesday?.
The correct to answer to the following question is option A) Tacit collusion .
Explanation:
Tacit collusion ( which is also know as price leadership ) can be defined as the situation where a dominant firm in the market will set a price and other firms in the market would accept those changes in the price. Here the dominant firm usually sets high price, such that the firms who are least cost efficient would also be able to earn some return.
