What is the expected percentage return on stock

Assignment Help Business Management
Reference no: EM133051958

You are considering buying a share of stock in a firm that has the following two possible payoffs with the corresponding probability of occurring. The stock has a purchase price of $15.00. You forecast that there is a 30% chance that the stock will sell for $30.00 at the end of one year. The alternative expectation is that there is a 70% chance that the stock will sell for $10.00 at the end of one year. What is the expected percentage return on this stock, and what is the return variance?

Reference no: EM133051958

Questions Cloud

Discuss competition-collaboration with third parties : Provide one example of a platform business and discuss competition/collaboration with third parties. How do you think of its policy regarding third parties?
Question on ethical investment : You are a financial planner. A client - who invests only in Australian equities - comes to you and says: "I don't want my money to be used to contribute to clim
Fatima big-picture planning entail : Fatima works at the local mental health center. She has to plan five group sessions on the topic of divorce. She has screened potential members and has five mem
Advantages to employers offering a wellness plan : Describe and state the advantages to employers offering a wellness plan.
What is the expected percentage return on stock : You are considering buying a share of stock in a firm that has the following two possible payoffs with the corresponding probability of occurring.
Five main steps in the ratemaking process : Question 1: Identify five types of information requested on an insurance application.
Evaluate current environmental challenges : Evaluate current environmental challenges impacting business operations along with the methodologies and tools that may be effective in addressing these challen
Favorable situation for the entrepreneur : Which of the three (3) models present a favorable situation for the entrepreneur? Explain your answer.
Level of economic inequality : a. Do property rights seem less intuitively justified when ownership moves from the simple association of people and the things they harvest, to interest-produc

Reviews

Write a Review

Business Management Questions & Answers

  Required return on the preferred stock

Value of a Preferred Stock If a preferred stock from Pfizer Inc. (PFE) pays $17.00 in annual dividends, and the required return on the preferred stock is 12.00 percent, what's the value of the stock?

  Alien and ethic profiling issues in homeland security

Please write an essay regarding Alien and ethic profiling issues in Homeland Security. Please do atleast 10 to 15 pages including references and please no plagiarism.

  What are the environmental factors that affect the business

BUSN 1200 Fundamentals Of Business Assignment, Douglas College, Canada. What are the environmental factors that affect the business

  Practices in information systems in project management

Web Research Conduct an Internet search to find companies noted for best practices in Information Systems in Project Management.

  Projects designed to develop opportunity

Discuss projects designed to solve a problem and projects designed to develop an opportunity. How do these projects differ?

  Create the video for assignment

For this presentation, you will create a quick 5-minute videoTo create the video for this assignment, so organize well! Use your outline and the details from yo

  Reducing the long term plan outlook from 5 years to 3

reducing the long term plan outlook from 5 years to 3 years.in 2008 the country experienced a massive recession.

  Techniques for improving idea elicitation in teams

The concept of idea elicitation is important for team success. Define this concept. Detail some techniques for improving idea elicitation in teams.

  Us and move the operations to honduras

A call center company has decided to close a call center in the US and move the operations to Honduras.

  Removal of information and photographs on facebook

Google has granted 43.4% of those requests. Most of the requests ask for removal of information and photographs on Facebook.

  Explaining the components and the process

Write an e-mail to your new employee explaining the components and the process of creating an annual report. Focus strongly on how accounting inputs are formulated into financial reports and statements for the organization.

  Mechanism to measure the success of the project

Mechanism to measure the success of the project (parent satisfaction, licensing achieved, etc.)

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