FAKE6613 FAKE6613

10-03-2020
Business

contestada

You recently purchased a stock that is expected to earn 19 percent in a booming economy, 12 percent in a normal economy, and lose 8 percent in a recessionary economy. The probability of a boom economy is 16 percent while the probability of a normal economy is 78 percent. What is your expected rate of return on this stock?

Respuesta :

saqib097 saqib097

13-03-2020

Answer:

The expected rate of return on this stock 11.92%.

Explanation:

E(r) = (0.16 × 0.19) + (0.78 × 0.12) + (0.06 × -0.08)

= 0.0304 + 0.0936 - 0.0048

= 0.1192

= 11.92%

Answer Link

Otras preguntas

Where can a party reviewing a title commitment find requirements that must be met before a title insurance policy will be issued?

In chemistry, there is a class of compounds called alkanes. they have the general formula c subscript x baseline h subscript 2 x 2, where c stands for a carbon

What is the pH of a solution that results from adding 0.045 mol KOH (s) to 1.65 L of a buffer comprised of 0.261 M CH3COOH and 0.261 M CH3COONa

CuI(s) Give the systematic names of these compounds. Spelling counts.chegg.com/homework-help/questions-and-answers/write-chemical-formulas-given-compounds-magne

Dallas developed in the nineteenth century as a result of a. the intersection of two railroad lines. b. the development of a large international airport. c. the

uppose that the radius of convergence of the power series cn xn is R. What is the radius of convergence of the power series cn x6n

Chromatin and the Cellular Response to Particle Radiation-Induced Oxidative and Clustered DNA Damage

When creating works of art this process of expression called automatism incorporates intuition, spontaneity, and the accidental.

In a research or cell culture lab where no animals are in use, what is the best recommendation regarding sharps based on safe sharps work practices

D. Tran and D. M. Blei. Implicit causal models for genome-wide association studies. In International Conference on Learning Representations, 2018.