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olga55 [171]
1 year ago
13

The Inferior Goods Co. stock is expected to earn 13% in a recession, 7% in a normal economy, and lose 6% in a booming economy. T

he probability of a boom is 20% while the probability of a normal economy is 55% and the chance of a recession is 25%. What is the expected rate of return on this stock?
Business
1 answer:
Natalka [10]1 year ago
8 0

Answer:

Ans. The expected rate of return on the Inferior Goods Co. stock is 5.90%

Explanation:

Hi, you just have to multiply the expected earnings by the probability of occurance of a certain event and then add up all the products. Here is the information all organized to be processed.

Item                  Prob Earn

Booming           20% -6%

Normal           55% 7%

Recession   25% 13%

Ok, now let´s calculate the expected rate of return.

ExpectedReturn=(0.2*(-0.06))+(0.55*0.07)+(0.25*0.13)

ExpectedReturn=-0.012+0.039+0.033=0.059

So the expected rate of return of the stock is 5.90%

Best of luck.

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Downsizing is an effective way to:_______. 1. gain the advantages of small businesses. 2. increase organizational tasks. 3. redu
IgorLugansk [536]

Answer:

1. gain the advantages of small businesses

Explanation:

Downsizing is the process of reducing the amount of employees or departments in a company.

Because the size of the company is reduced through downsizing, a company might downsize with the objective of gaining the advantages of small businesses.

Downsizing discourages employees and this can reduce employees trust .

Downsizing reduces organisations task due to less number of departments.

Downsizing reduces and does not increase management layers.

I hope my answer helps you

3 0
1 year ago
When considering the gothic tradition in literary production alone, when does it emerge most predominantly?
stira [4]

Answer:

During the 18th century or during the Romantic period.

Explanation:

While the concept of Gothic elements began as early as the 4th century, the literary impact was seen only from the 18th century, during the Romantic period. While the earlier and initial influences were mainly in the architecture and art forms, literary production on this tradition came after more than a decade of its inception.

The Romantics was a period of imaginative and emotional influences into literary works. Writers of this period focus on the individual's emotions and feelings, And in this period of influence, the themes of Romanticism but in a darker way began to be explored, leading to the Gothic literary genre.

Thus, the <u>gothic tradition in literary production alone emerges most predominantly during the 18th century or the Romantic period.</u>

3 0
1 year ago
It was the third meeting, but the group had finally agreed on the roles for each member. Cathy felt good about how things were p
Aleksandr-060686 [28]

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Explanation:

The third stage of a group development model is regarded to as the norming stage. The norming stage is the stage whereby members or teammates start appreciating the strengths that are possessed by each other in the team.

At this stage, there is resolution of conflicts and establishment of leadership positions. Here, everyone is happy with their roles.

8 0
1 year ago
Tamarisk, Inc. has the following inventory data:
Marta_Voda [28]

Answer:

cost of goods sold (rounded) is $1392

Explanation:

Date Q Cost U.Cost Sold Inventory Cost

nov-01 31 192,2 6,2         20                      11     124

nov-08 125 837,5 6,7         94                      31     630

nov-17 62 406,1 6,55 31                      31      203

nov-25 94 648,6 6,9         63                     31        435

                 312   208                   104      1392

3 0
1 year ago
The contribution income statement would require a firm to ___________.
Lelu [443]

Answer: A. Separate costs into fixed and variable categories.

Explanation: The contribution income statement separates variable and fixed costs in an effect to show the amount of revenues left over after variable costs are paid, that is, it lists variable costs (costs that do not remain consistent) and fixed costs (costs that are constant whatever the amount of goods produced) in order to calculate the contribution margin of the company. It is also known as the contribution margin income statement. As opposed to the traditional income statement which separates product costs from period costs, it separates variable costs from fixed costs and is applied to determining net profit or loss for the period.

3 0
2 years ago
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