1 answer

The common stock of Manchester & Moore is expected to earn 14 percent in a recession,...

Question:

The common stock of Manchester & Moore is expected to earn 14 percent in a recession, 7

percent in a normal economy, and lose 4 percent in a booming economy. The probability of a

boom is 15 percent while the probability of a recession is 5 percent. What is the expected rate of

return on this stock?

a. What is the expected rate of return on this stock?

5.7%

b. What is the variance of the returns on this stock?

0.001891

c. What is the standard deviation of the returns on this stock?

4.35%

Please check my answers and show work typed no excel or grid style please as I am on mobile.


Answers

Date 2 Ecomomic Coudihon Poo 2.23.444s 1 3S20 14,113 Normol 0.20 2 sisa 435 yariconce ニ G,2-2 D.xprolo 二18.912 or 0.1291 ute e Ansuwer Poter above

.

Similar Solved Questions

1 answer
Question 3: (10 marks) Figure below shows a collision between three balls of clay. The three...
Question 3: (10 marks) Figure below shows a collision between three balls of clay. The three hit simultaneously and stick together. A. What are the speed and direction of the resulting blob of clay? (7 marks) B. What is the energy lost during this collision? (3 marks) 408 45° 4.0 m/s 3.0 m/s 30 ...
1 answer
UINZ Sav 91 sa 13 of 16 (13 complete) HW Score: 61.46%, 9.83 of 16 p...
UINZ Sav 91 sa 13 of 16 (13 complete) HW Score: 61.46%, 9.83 of 16 p Score: 0 of 1 pt Problem 4-94 (algorithmic) Question Help adie that in The Stafford plan now offers student loans at 4% annual interest. After two years the interest rate will increase to 7% per year If you borrow $4.500 now and 54...
1 answer
** LUIE detination Fiscal policy Budget deficit Budget surplus National Debt Marginal Tax Rate Progressive tax...
** LUIE detination Fiscal policy Budget deficit Budget surplus National Debt Marginal Tax Rate Progressive tax Regressive tax Deficit Dove Deficit Hawk Automatic Stabilizers Laffer curve 1. Use the loanable funds model to explain why classicals argue that government deficits crowd out private spendi...
1 answer
If someone says you're wont to buy flowers, what does he or she mean?
If someone says you're wont to buy flowers, what does he or she mean?...
1 answer
There are 430 welders employed at the Weller Shipyards Corporation. A sample of 45 welders revealed...
There are 430 welders employed at the Weller Shipyards Corporation. A sample of 45 welders revealed that 36 had graduated from a registered welding course. Construct the 99% confidence interval for the proportion of all welders who graduated from a registered welding course. (Round the final answers...
1 answer
Transportation Engineering Estimate the free-flow speed of a six-lane suburban freeway with 12 ft lanes, a...
Transportation Engineering Estimate the free-flow speed of a six-lane suburban freeway with 12 ft lanes, a right-side lateral clearance of 2 ft , and a ramp density of 3.5 ramps/mi. Normal conditions, that is, good weather, no incidents, no work zones, and regular users of the facility, may be assum...
2 answers
Suppose Bill is on a low-carbohydrate diet. He can eat only three foods:
Suppose Bill is on a low-carbohydrate diet. He can eat only three foods: Rice Krispies, cottage cheese, and popcorn. The marginal utilities for each food are tabulatedbelow. Bill is allowed only 167 grams of carbohydrates daily. Rice Krispies, cottage cheese, and popcorn provide 25, 6, and 10 grams ...
1 answer
For the reaction PC13(g) + Cl219) 5 PC15(g) at a particular temperature, Kc = 24.3. Suppose...
For the reaction PC13(g) + Cl219) 5 PC15(g) at a particular temperature, Kc = 24.3. Suppose a system at that temperature is prepared with (PC13) = 0.10 M, (C12] = 0.15 M, and (PC15] = 0.60 M. Which of the following is true based on the above? Multiple Choice Qc > Kc, the reaction proceeds from le...
1 answer
18. [-/6 Points] DETAILS PESTAT1 9.E.025. MY NOTES ASK YOUR TEACHER PRACTICE ANOTHE Suppose a survey...
18. [-/6 Points] DETAILS PESTAT1 9.E.025. MY NOTES ASK YOUR TEACHER PRACTICE ANOTHE Suppose a survey revealed that 19% of 464 respondents said they had in the past sold unwanted gifts over the Internet (a) Use the information to construct a 90% confidence interval for the population proportion who s...
1 answer
The compressed-air tank has an inner radius r and uniform wall thickness t. The gage pressure...
The compressed-air tank has an inner radius r and uniform wall thickness t. The gage pressure inside the tank is p and the centric axial load F is applied at the end cap. Use p = 1366 kPa, F = 14 kN, t= 12 mm and r = 192 mm. u x ІН F Matlab Mathematica Python R p = 1366; % kPa F = 14; % ...
1 answer
Background: 1. 2. Consider the linear map D: P2(R) + P1(R) defined by D(a + bx...
Background: 1. 2. Consider the linear map D: P2(R) + P1(R) defined by D(a + bx + cx?) = (a + bx + cx?) = 6+2cx, dr and the linear map T : P1(R) + P2(R) defined by T(a + bx) = (a + bt)dt = ax + 3x2. Let a = {1,x}, B = {1, x, x?} be the standard bases for P1(R), P2 (R), respectively. We know from Ca...
1 answer
How do solve the following linear system?: # y = 5x - 7, x= y - 11 x #?
How do solve the following linear system?: # y = 5x - 7, x= y - 11 x #?...
1 answer
Question 14/1 What number does not belong in the sequence: 1, 3,9,1 2, 19, 29, 33,39,43...
Question 14/1 What number does not belong in the sequence: 1, 3,9,1 2, 19, 29, 33,39,43 19 43 12 39 4...
1 answer
Problem #1: Optimal labor supply Clark gains utility from consumption c and leisure l and his...
Problem #1: Optimal labor supply Clark gains utility from consumption c and leisure l and his preferences for consumption and leisure can be expressed as U(c, l) = 2(√ c)(l). This utility function implies that Clark’s marginal utility of leisure is 2√ c and his marginal utility of ...