What is this stock expected return

Assignment Help Accounting Basics
Reference no: EM133089665

Question - The rates of return for a stock are as follows: 4% if the state of the economy is recession; 8% if the state of the economy is normal; and 11% if the state of the economy is expansion. The probability for each state of the economy is 22%, 42%, and 36%, respectively. What is this stock's expected return?

Reference no: EM133089665

Questions Cloud

Capital of proposed business : Our instructor said that one of the questions to be asked by panelist for oral defensecapital will be "Why is it that our money is big?" Maybe he meant the of t
Processing in the human alimentary canal : Discuss the food processing in the human alimentary canal.
Which mission statement best represents the digby company : Providing value to our customers is why we get up in the morning. We accomplish this by offering products at a low price our customers can afford across a wide
Assignment on organizational structure : You are currently employed to Fenty's Inc., a global manufacturer and seller of cosmetics and beauty products. They insist that they no longer want to operate a
What is this stock expected return : The probability for each state of the economy is 22%, 42%, and 36%, respectively. What is this stock's expected return
What is Emma annualized return on the stock : She received no dividends on the stock and sold the stock today for $36 per share. What is Emma's annualized return on the stock
Vertical growth as a corporate strategy : 1. How does horizontal growth differ from vertical growth as a corporate strategy? From concentric diversification?
Prepare the journal entries required : On June 1, 2020, Hamilton, Inc. issues 8,000 shares of $.10 par value preferred stock at $80 cash per share. Prepare the journal entries required
What is the expense ratio for Mark mutual fund : Expense Ratio - Mark owns a mutual fund with a NAV of $49.44 per share and expenses of $2.21 per share. What is the expense ratio for Mark's mutual fund

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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