Percent in a recessionary economy

Assignment Help Finance Basics
Reference no: EM132154694

You recently purchased a stock that is expected to earn 12.6 percent in a booming economy, 8.9 percent in a normal economy and lose 5.2 percent in a recessionary economy. Each economic state is equally likely to occur. What is your expected rate of return on this stock?

Reference no: EM132154694

Questions Cloud

How do you display a list of all processes without the ps : How do you display a list of all processes without the ps header line where processes with the same name are grouped together?
Best estimate of the cost of equity : The market risk premium is 8% and T-bills are yielding 2.5%. The company's most recent dividend
What annual rate of return did ezio earn : If that was indeed the amount of money in the account on Flavia's 18th birthday, what annual rate of return did Ezio earn on his investment account?
How many max students can be use internet : If university upgrade the 1 Mbps link to 1 Gbps link. Now how many (max) students can be use internet (simultaneously)?
Percent in a recessionary economy : You recently purchased a stock that is expected to earn 12.6 percent in a booming economy, 8.9 percent in a normal economy and lose
First payment one month from today : Ted purchased an annuity today that will pay $1200 a month for seven years. He will receive his first payment one month from today.
Create a class specificationexception : Create a class SpecificationException that is thrown whenever your program encounters a specification that does not make sense.
What is the project net present value : The cost of capital is 13%. What is the project's Net Present Value?
What is the total rate of return on the bond : Find the bond's price today and six months from now after the next coupon is paid.

Reviews

Write a Review

Finance Basics Questions & Answers

  A third option is to pay it back in equal monthly payments

q1. you are a buyer for a battery company and are investigating the purchase of lithium from an african company for 100

  What is the calculation of a firm sustainable growth rate

How can traditional DuPont analysis or extended DuPont analysis provide additional insight into changes in a firm's profitability?

  Describe conditions under which revenue would be recognized

[Revenue recognition criteria] Describe the conditions under which revenue would be recognized.

  List and describe three practical considerations that

list and describe three practical considerations that concern managers when they make capital structure

  Discuss the role of banking in business

These problems are belongs to Finance and the problems are discusses the role of banking in business and the challenges faced by corporate governance and the role played by investment banking.

  Percentage change of the value of mxn against brl

If Brazilian reals appreciates against the U.S. dollar from BRL5/$ to BRL4/$, what is the percentage change of the value of MXN against BRL?

  What is the unpaid balance on the debt

After 7 years of monthly payments on $160,000 at 3% for 25 years. Round to nearest cent.

  Calculate loan origination fees for option 1 and option 2

Which option is more cost effective if you stay in the home for 2 years or less? Which option is more cost effective if you stay in the home for 3 years or more?

  What is the interest rate in the korean market

Suppose that a US interest rate  is 4% and the forward premium for the Korean won is 1%. What is the interest  rate in the Korean market? (Assume that the US is home) A currency trader observes that in the spot exchange market, one U.S. dollar can be..

  Write an email report with new analysis

Using the data you analyzed in the previous exercise, draw conclusions and make recommendations. Then write a cover memo to accompany the report. Include brief statements of your conclusions and recommendations.

  Find the amount of the final sinking fund deposit

The total annual payments will be level at $3,300 until a final smaller annual payment suffices to pay off the loan. Find the amount of the final sinking fund deposit.

  Tvm concept-value of money

XYZ company has a balloon payment coming due from the recent acquisition. What TVM concept (s) is represented in the condition? What is the value of money represented by the situation?

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