Calculating Expected Return Based on the following information, calculate the expected return: Probability of State of Economy
Question:
Calculating Expected Return Based on the following information, calculate the expected return:
Expected ReturnThe expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these...
Transcribed Image Text:
Probability of State of Economy State of Rate of Return if Economy State Occurs 25 -05 Recession .40 .12 Nomal 35 25 Boom
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 60% (10 reviews)
The expected return of an asset is the su...View the full answer
Answered By
Ashington Waweru
I am a lecturer, research writer and also a qualified financial analyst and accountant. I am qualified and articulate in many disciplines including English, Accounting, Finance, Quantitative spreadsheet analysis, Economics, and Statistics. I am an expert with sixteen years of experience in online industry-related work. I have a master's in business administration and a bachelor’s degree in education, accounting, and economics options.
I am a writer and proofreading expert with sixteen years of experience in online writing, proofreading, and text editing. I have vast knowledge and experience in writing techniques and styles such as APA, ASA, MLA, Chicago, Turabian, IEEE, and many others.
I am also an online blogger and research writer with sixteen years of writing and proofreading articles and reports. I have written many scripts and articles for blogs, and I also specialize in search engine
I have sixteen years of experience in Excel data entry, Excel data analysis, R-studio quantitative analysis, SPSS quantitative analysis, research writing, and proofreading articles and reports. I will deliver the highest quality online and offline Excel, R, SPSS, and other spreadsheet solutions within your operational deadlines. I have also compiled many original Excel quantitative and text spreadsheets which solve client’s problems in my research writing career.
I have extensive enterprise resource planning accounting, financial modeling, financial reporting, and company analysis: customer relationship management, enterprise resource planning, financial accounting projects, and corporate finance.
I am articulate in psychology, engineering, nursing, counseling, project management, accounting, finance, quantitative spreadsheet analysis, statistical and economic analysis, among many other industry fields and academic disciplines. I work to solve problems and provide accurate and credible solutions and research reports in all industries in the global economy.
I have taught and conducted masters and Ph.D. thesis research for specialists in Quantitative finance, Financial Accounting, Actuarial science, Macroeconomics, Microeconomics, Risk Management, Managerial Economics, Engineering Economics, Financial economics, Taxation and many other disciplines including water engineering, psychology, e-commerce, mechanical engineering, leadership and many others.
I have developed many courses on online websites like Teachable and Thinkific. I also developed an accounting reporting automation software project for Utafiti sacco located at ILRI Uthiru Kenya when I was working there in year 2001.
I am a mature, self-motivated worker who delivers high-quality, on-time reports which solve client’s problems accurately.
I have written many academic and professional industry research papers and tutored many clients from college to university undergraduate, master's and Ph.D. students, and corporate professionals. I anticipate your hiring me.
I know I will deliver the highest quality work you will find anywhere to award me your project work. Please note that I am looking for a long-term work relationship with you. I look forward to you delivering the best service to you.
3.00+
2+ Reviews
10+ Question Solved
Related Book For
Fundamentals of Corporate Finance
ISBN: 978-0077861629
8th Edition
Authors: Stephen A. Ross, Randolph W. Westerfield, Bradford D.Jordan
Question Posted:
Students also viewed these Corporate Finance questions
-
Calculating expected return based on the following information calculate the expected return State of Probability of State of Economy Rate of Return if Economy State Occurs Recession -09 30 70 Boom 33
-
Based on the following information, calculate the expected return and standard deviation for the twostocks. Rate of ReturnifState Occurs State of Probability of State of EconomyStockA Stock B...
-
Based on the following information, calculate the expected return and standard deviation for the twostocks. Rate of Return If State Occurs State of Economy Recession Normal Boom Probability of State...
-
Comparative figures from the statement of profit or loss of Misty Ltd are shown below: 2017 2016 Revenue (all sales) Cost of sales $450 000 292 300 $390 000 287 000 Gross profit Expenses (including...
-
At the local ski slope, an 82.0-kg skier rides a gondola to the top of the mountain. If the lift has a length of 2950 m and makes an angle of 13.1 with the horizontal, what is the change in the...
-
What is the best facility layout for each of the following? a. Movie rental shop b. Nail salon c. Car wash d. Sandwich shop
-
Water at \(20^{\circ} \mathrm{C}\) is flowing down a \(3.0 \mathrm{~m}\) long vertical plate at a volumetric flow rate per meter of plate width of \(q=0.000005 \mathrm{~m}^{2} / \mathrm{s}\)....
-
Lados operates a chain of sandwich shops. The company is considering two possible expansion plans. Plan A would open eight smaller shops at a cost of $8,600,000. Expected annual net cash inflows are...
-
Barney Enterprises has budgeted sales in units for the next four months as follows. October 6 , 8 0 0 units November 7 , 0 0 0 units December 8 , 0 0 0 units January 5 , 9 0 0 units Past experience...
-
Stitch Fix, a San Francisco-based company, applies data capabilities to make online retailing more like a personal shopping assistant. CEO Katrina Lake created Stitch Fix as a retailer grounded in...
-
Portfolio Expected Return you have $10,000 to invest in a stock portfolio. Your choices are Stock X with an expected return of 15 percent and Stock Y with an expected return of 10 percent. If your...
-
Calculating Returns and Standard Deviations Based on the following information, calculate the expected return and standard deviation for the two stocks: State of Rate of Return if State Occurs...
-
Use the Linear Approximation. A bond that pays $10,000 in 6 years is offered for sale at a price P. The percentage yield Y of the bond is Verify that if P = $7500, then Y = 4.91%. Estimate the drop...
-
Who are the 12 stakeholders B2B marketers interact with? (5 marks) Define inbound and outbound marketing and give an example of each.(5 marks) Provide one example of how a CRM strategy can improve...
-
The inverse of the collision rate, 1/z, is the average time between collisions of gas particles. Calculate the average time between collisions of an Xe atom in 1.00 mol of Xe at STP.
-
The root mean square speed of N 2 molecules at 25 degrees Celsius is about 1.6 km/s. What is the root mean square speed of an N 2 molecule at 25 degrees Celsius?
-
An air-filled capacitor consists of two parallel plates, each with an area of 7.60 cm, separated by a distance of 2.00 mm. If a 16.0 V potential difference is applied to these plates, calculate the...
-
Project L costs $56,853.83, its expected cash inflows are $12,000 per year for 9 years, and its WACC is 10%. What is the project's IRR?
-
Let x represent the weight of a students school bag. Determine whether the random variable x is discrete or continuous. Explain.
-
An Atomic Energy Commission nuclear facility was established in Hanford, Washington, in 1943. Over the years, a significant amount of strontium 90 and cesium 137 leaked into the Columbia River. In a...
-
You are given: (i) The current price of a stock is 70. (ii) The continuously compounded risk-free interest rate is 5%. (iii) The price of a 70-strike 1-year European call option is 5. (iv) The price...
-
What are the two components of total risk?
-
Why does the total risk of a portfolio not approach zero as the number of assets in a portfolio becomes very large?
-
Why are returns on the stock market used as a benchmark in measuring systematic risk?
-
You have two groups of friends where 6 of who you go play soccer with and 5 of who you play tennis with. You want to invite 7 of your friends from these groups to a a baseball game. Suppose that Amy,...
-
Based on the information below, how should you answer FDPQC question 1.11 "Does the written food defense plan include written procedures for the food defense verification activities?" Scenario: The...
-
2. Les responsabilits du Trsorier Article 38 Le Trsorier doit s'assurer que toutes les sommes perues et reues sont verses sur les comptes bancaires de Fellowship dans le dlais de deux jours ouvrables...
Study smarter with the SolutionInn App