Find what is expected return after one year

Assignment Help Financial Accounting
Reference no: EM132952687

You loan a friend $5,000. There is a 15% chance your friend will pay you a 3% return, a 40% chance he will pay you a 2% return and a 45% chance he will pay you only a 1% return.

Problem 1: What is your expected return after one year?

a.) 1.80%
b.) 2.20%
c.) 1.70%
d.) 2.05%

Reference no: EM132952687

Questions Cloud

Make consolidated statement of financial position as at dec : Craft Ltd. held 80% of the outstanding ordinary shares of Delta Corp., Prepare a consolidated statement of financial position as at December 31, Year 12.
Identification of the issue including charts : Select a publicly traded company for which answers the following questions
Describe the role of the financial manager : Provide a brief update to the instructor on how you feel you are doing so far this term. Describe the role of the Financial Manager.
Understanding of little law : The Ministry of Health Services, British Columbia, announced the following data:
Find what is expected return after one year : Find What is your expected return after one year? You loan a friend $5,000. There is a 15% chance your friend will pay you a 3% return, a 40% chance
Make an income statement tor the year for concepcion : Make an Income Statement tor the year ending 2021 for Concepcion Trading Company, supported by all computations necessary to determine sales
Compute the historical volatility in terms of annualized : Compute the historical volatility in terms of annualized standard deviation on the IBM shares, using the 12-month price data in the table above.
Who are mattel largest stockholders : Who are Mattel's largest stockholders? What do you think are their strategic goals with respect to their equity holdings in the firm? Do you see any potential f
Prepare journal entries to record transaction for company : Prepare the journal entries to record this transaction in accordance with AASB 15 "Revenue from Contracts with Customers" for 1 July 2019

Reviews

Write a Review

Financial Accounting Questions & Answers

  Solve the net income under the cash basis of accounting

In its first year of operations, 2020, Pronghorn Corp. invoiced $184,000 in service revenue. Calculate the net income under the cash basis of accounting.

  Determine what nonconstant dividend growth valuation

Market risk premium is 4.5%. What is your estimate of the stock's current price? Do not round intermediate calculations. Round your answer to the nearest cent

  Evaluate each of the CFO recommendations

Evaluate each of the CFO's recommendations. In your evaluation, consider whether each recommendation will positively impact the operating performance

  How can sale be use to develop pro forma financial statement

Answer the following in no more than 4 paragraphs, to include in-text citations. How can sales be used to develop pro forma financial statements?

  Would agree with the consolidation organization

Would you agree with the consolidation organization? If you could turn back time, would you organize the corporate structure the same? Why or why not?

  Sole proprietorship using the cash method of accounting

Samantha is an accountant who operates as a sole proprietorship using the cash method of accounting. Samantha’s had a great year this year (2014) but she is worried that the additional income she has earned will push her into a higher tax bracket. Sh..

  What was foxs gain or loss in 2010

On July 1, 2010, Fox called all of the bonds and retired them. Bond premium was amortized on a straight-line basis. Before income taxes, what was Fox's gain or loss in 2010 on this early extinguishment of debt?

  Explain the revenue recognition criteria

Also include a discussion of the reasons for, and alternative methods of, recognizing revenue in a period other than the period of sale

  Determine the amount of lease payment

Determine the amount of lease payment that the lessor would require to lease the asset to an outside party. (Same criteria as Lessee)

  Find what would rasta fx equity exposure be

Find what would Rasta's FX equity exposure be if the company would issue/raise an additional (new) USD 30 million in EUR-denominated debt?

  How old is the equipment in years

The company uses the straight-line method to depreciate and amortize. As of December 31, Year 2, approximately how old is the equipment in years?

  The impact of filling the pacific order on missions profits

Mission Electronics manufactures and sells basic DVD players for sale under various generic store brand names. The cost of one of their models follows: Materials $ 18.70 Labor 12.70 Variable overhead 5.70 Fixed overhead ($3,061,900 per year; 457,000 ..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd