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umka2103 [35]
3 years ago
12

What is the expected return on a portfolio that will decline in value by 13% in a recession, will increase by 16% in normal time

s, and will increase by 23% during boom times if each scenario has an equal likelihood of occurrence?
Business
1 answer:
Alja [10]3 years ago
5 0

Answer:

Expected return of the portfolio = 8.67 %

Explanation:

given data

recession = - 13%

normal times = 16%

boom times = 23%

to find out

expected return on a portfolio

solution

we know that here 3 scenario has equal chance of happen probability it means each event have chance or probability of occur = \frac{1}{3}

so here Expected return of portfolio will be

Expected return of portfolio = Sum of all 3 events expected return  ............1

we get here

Expected return of the portfolio = -0.13*\frac{1}{3} +0.16*\frac{1}{3}  +0.23*\frac{1}{3}

Expected return of the portfolio = 0.0866666

Expected return of the portfolio = 8.67 %

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Creek Corporation had $210,000 of active income, $45,000 of portfolio income, and a $230,000 passive activity loss during the ye
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Answer:

given statement is false

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active income = $210,000

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passive activity loss = $230,000

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solution

as per Topic Passive Activities

we know that Losses and Credits in IRS state here that Loss from passive activity is not allowed for current year

and here this loss will be carry forward to the next taxable year

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3 years ago
With a lifestyle, people select products and services that fulfill their diverse needs and interests, rather than conforming to
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6 0
3 years ago
Read 2 more answers
Match each scenario with the source of monopoly market power.
dybincka [34]

Answer:

1. Mary McFly invents a time machine and gets legal protection from competition. Patent

2. Main Line Utilities can operate at a lower cost than multiple electric companies. Economies of Scale

3. The author of Economics for Dumbbells is given exclusive rights to produce this book. Copyright

4. Your city council gives All Talk Communication Services exclusive rights to build high speed internet infrastructure in your town.Government licencing

5. DeJeers Jewelers owns 80% of the world's diamond mines. Control over Resources

Explanation:

A monopoly is when there's only one firm operating in an industry.

Economies of scale is cost reduction that accures to a firm as a result of its large scale production. For example, a supplier might give a producer a discount for buying in bulk.

A patent is when the government or an agency of the government gives the right to produce an invention or a good for a set period, others are usually excluded making, using or selling the invention.

Copyright gives the owner of an intellectual property the exclusive right to make copies of a creative work, usually for a limited time.

If a firm has exclusive access to resocurces, it is possible for the firm to prevent other firms from entering into the industry and thus retain monopoly power.

I hope my answer helps you

5 0
3 years ago
The weighted-average cost method is used by Jose, Inc. Sales are $240,000, the number of units available for sale is 100, the nu
-Dominant- [34]

Answer:

Gross profit= $195,000

Explanation:

Giving the following information:

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4 0
3 years ago
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