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PtichkaEL [24]
3 years ago
8

The likelihood of Company A's stock price rising is 20%, and the likelihood of Company B's stock price rising is 30%. Assume tha

t the returns of Company A and Company B stock are independent of each other. The probability that the stock price of at least one of the companies will rise is ________.
Business
1 answer:
Volgvan3 years ago
6 0

Answer: 44%

Explanation:

In probability, Independent event is simply an event that doesn't have anything to do with the occurrence or non-occurrence of another event.

From the question, we are informed that likelihood of Company A's stock price rising is 20%, and the likelihood of Company B's stock price rising is 30% and they are both independent.

Therefore, the probability that the stock price of at least one of the companies will rise goes thus:

P(at least one will rise) will be:

= 1 - P(both fall)

= 1 - [(1-0.20) × (1-0.30)]

= 1- (0.8 × 0.7)

= 1 - 0.56

= 0.44

= 44%

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Environmentalists have continually argued for the use of alternatives to fossil fuels to generate energy. Harnessing wind power
son4ous [18]

Answer:

<u>Mistake of ignoring secondary effects</u>

Explanation:

Whenever there arises an adverse impact of a policy and it's implementation, owing to ignorance of secondary consequences, it is termed as ignoring secondary effects.

In short, it refers to assessing and viewing only the positive aspects of a policy or a move, meanwhile not taking into consideration the other adverse consequences which are also associated with the same policy.

In the given case, the environmentalists have only considered the generation of alternative sources of energy via windmills which will lead to preservation of fossil fuels. The proposed policy has been implemented without taking into account it's flip side i.e the harm it causes to bat population and migratory birds.

Thus, it can be stated that the environmentalists herein only considered the favorable outcome of a policy implementation and ignored the adverse effect of the same. Hence, they are said to have committed the mistake of ignoring the secondary effects.

7 0
3 years ago
7. Which situation indicates a mixed economy?
STatiana [176]

Answer:

C Services are provided by both private and public sectors.

Explanation:

In a mixed economy, the private sector has the freedom to participate in economic activities, although the government has a role to play.  A mixed economy allows the private sector to own the factors of production hence are free to decide what business they wish to run. Consumers have the liberty to select their suppliers.  There is competition in the market place as profits motivate entrepreneurs.

The government is involved in the provision of public goods such as roads, hospitals, and schools. It provides regulatory services to the private sector to ensure fairness in the economy.

5 0
3 years ago
Isaiah is lucky to have such talented friends. Here’s where you come in:
anygoal [31]

Answer:

I can't figure it out sorry

5 0
3 years ago
Read 2 more answers
What is the role of incentives in the workplace?
Fynjy0 [20]

Answer:

a way to keep workers motivated to do their job to the best of their ability. having something to look forward to.

Explanation:

3 0
3 years ago
Read 2 more answers
Shirley’s and Son have a debt-equity ratio of .60 and a tax rate of 35 percent. The firm does not issue preferred stock. The cos
ikadub [295]

Answer:

d. 8.2%

Explanation:

The computation of the WACC is shown below:

= Weightage of debt × cost of debt × ( 1- tax rate) + (Weightage of  common stock) × (cost of common stock)

where,  

Weighted of debt = Debt ÷ total firm

= (0.60 ÷ 1.60)

= 0.375

And, the weighted of common stock = (Common stock ÷ total firm)

                                                              = 1 ÷ 1.60

                                                              = 0.625  

The total firm is

= 0.60 + 1

= 1.60

Now put these values to the above formula  

So, the value would equal to

= (0.375 × 8%) × ( 1 - 35%) + (0.625 × 10%)

= 1.95% + 6.25%

= 8.20%

8 0
3 years ago
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