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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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Suppose you believe that Delva Corporation's stock price is going to decline from its current level of $82.50 sometime during th
Yakvenalex [24]

Answer:

B. $1,989.75

Explanation:

Cost of option (C) = $510.25

Option selling price (Po) = $85 per share

Share price when selling (Ps) = $60 per share

Number of shares (n) = 100 shares

Since the option allows you to sell shares that are valued at $60 for at $85 each, by selling 100 shares, your total earnings are:

E=(P_o-P_s)*n\\E=(\$85-\$60*)100\\E=\$2,500

To find the pre-tax net profit (P), subtract the amount paid for the options from your earnings:

P=E-C= \$2,500-\$510.25\\P=\$1,989.75

6 0
3 years ago
Suppose that smoking creates a negative externality. If the government does not interfere in the cigarette market, then a. the e
Alexxx [7]

Answer:

b. the equilibrium quantity of cigarettes smoked will be greater than the socially optimal quantity of cigarettes smoked.

Explanation:

A negative externality occurs when the costs of economic activities to third parties not involved in economic activities are greater than the benefits.

Negative externality are usually overproduced in the economy. so, the equilibrium quantity of cigarettes smoked will be greater than the socially optimal quantity of cigarettes smoked.

5 0
3 years ago
Which of the following transactions is reported on the government-wide financial statements? Multiple Choice An interfund loan f
Anettt [7]

Answer:

The correct answer is the third option: The City Airport Fund, an enterprise fund, transfers a portion of boarding fees charged to passengers to the General Fund.

Explanation:

To begin with, the name of "government-wide financial statements" is refered to the type of statements that bring all the financial activity together in one single place with the purpose to report certain economic information so that the people in charge of certain things can go and see all that information in order to use as a tool for the decision making process when the case arise. Moreover, this type of statements are the ones who organized all that information depending on whether it comes from the activities done by the government or done by the companies and businesses of the nation.

4 0
3 years ago
Lisa lives next to a vacant plot that belongs to Carol. Carol has never visited the plot in the last 20 years during which perio
RUDIKE [14]

Answer:

Adverse possession.

Explanation:

In this scenario, Lisa lives next to a vacant plot that belongs to Carol. Carol has never visited the plot in the last 20 years during which period, Lisa has taken care of it by fencing the plot and mowing the grass. If this continues, Lisa will be able to claim ownership of land based on adverse possession.

In Real estate law, Adverse possession is a legal principle which allows a non-owner individual to possess a piece of land and gain title with the exclusion of the real owner, after a certain period of time.

However, the non-owner occupant must proof to the court of law meets the following requirements;

1. Continuous.

2. Hostile.

3. Open.

4. Actual.

5. Exclusive.

5 0
3 years ago
This year Evan graduated from college and took a job as a deliveryman in the city. Evan was paid a salary of $75,300 and he rece
photoshop1234 [79]

Answer:

Evan's AGI is $ 66,000 and his taxable income is $ 54,000

Explanation:

To calculate the AGI you have to perform the following:

Salary                                                                                                 $ 67,300

work hourly pay                                                                                     <u>$ 700</u>

Gross pay                                                                                             $68,000

Modified AGI                                                                                       $ 68,000

<h3>Student loan interest deduction (2500)-((68000-65000)×(2500/15000)) =                                                    $-2000</h3>

AGI                                                                                                          $66,000

Next, to calculate the taxable income you have the follwong substraction

AGI                            $ 66,000

Standard deduction   $12,000

Personal deduction   <u>       0        </u>

Taxable Income         $ 54,000

4 0
3 years ago
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