Calculate the expected value of return for the line

Assignment Help Financial Management

Reference no: EM132073729

Question :

Risk Swan's Sportswear is considering bringing out a line of designer jeans.

After market research, the firm has established the expectations shown in the following shown in the following table about the annual rate of return.

Use the table to calculate the expected value of return for the line.

Market acceptance Probability Annual rate of return

Very poor 0.06 0.004

Poor 0.21 0.033

Average 0.47 0.089

Good 0.21 0.159

Excellent 0.05 0.225

The expected return for the line is ___%

Reference no: EM132073729

Questions Cloud

Calculate the adjusted cash balance per the books on january : In the process of reconciling its bank statement for January, The adjusted cash balance per the books on January 31 is

What is the irr of the project : The machine would save the firm $110,000 per year in operating costs. The firm is planning to keep the machine in place for 5 years.

Describe an integrative model of motivation : Identify the basic process models of motivation and describe an integrative model of motivation.

Motivating and enhancing performances : Discuss the role of alternate work arrangements in motivating and enhancing performances.

Calculate the expected value of return for the line : After market research, the firm has established the expectations shown in the following shown in the following table about the annual rate of return.

What is bryan gain and how much is recognized : Bryan has $150,000 basis in his partnership interest. The partnership distributes to him cash basis of $35,000, What is Bryan's gain and how much is recognized

Write a detailed setup of network devices : MN621 - Advanced Network Design - Local Area Network Design and Setup - Analyse the need for the network for above case study.

What is your overall perspective on csr : What is your overall perspective on CSR? If market forces do not encourage responsibility for social causes, should a firm engage in this behavior?

Basic types of reserves that project managers : Analyze the two (2) basic types of reserves that project managers should become familiar with, as discussed in the Kerzner text.

User Account

All Pages