Which will lower the overall expected return of this stock

Reference no: EM13289826

A stock is expected to return 13% in a boom, 10% in a normal, and 3% in a recessionary economy. Which will lower the overall expected return of this stock?

a. an increase in rate of return in recession
b. an increase in the probablilty of economic boom
c. a decrease in probability of recession
d. a decrease in the probability of an economic boom
e. an increase in the rate of return for normal economy

Reference no: EM13289826

Questions Cloud

State what is the ph of the resulting solution of hno3 : A 50.0 ml sample of 0.100 M HNO3 is titrated with 15.0 ml of 0.200 M NaOH. What is the pH of the resulting solution, a) 1.00

Which one of following increase that stocks rate of return : World United stock currently plots on the security market line and has a beta of 1.04. Which one of the following will increase that stocks rate of return without affecting the risk level of the stock, all else constant?

Find how much voltage will be generated of thermocouple : Assume a thermocouple generates a linear voltage from 20 mV to 50 mV when the temperature changes from 750 degrees F to 1250 degrees F. How much voltage will be generated when the temperature of the thermocouple is at 1000 degrees F

Obtain the effective spring constant of the molecule : A molecule of DNA (deoxyribonucleic acid) is 2.07 µm long. The ends of the molecule become singly ionized: negative on one end, Determine the effective spring constant of the molecule

Which will lower the overall expected return of this stock : A stock is expected to return 13% in a boom, 10% in a normal, and 3% in a recessionary economy. Which will lower the overall expected return of this stock?

Explain can a charged particle be injected into the region : Suppose a uniform magnetic field exists ina finite regionof space. Can a charged particle be injected into this region from the outside and remain trapped in the region by magnetic force alone

How do the forces acting between the truck and car : A large truck collides head-on with a small car. how do the forces acting between the truck and car compare during the collision

Physiological conditions : Under physiological conditions, [glucose] = 5 mM, [g-6-P] = 80 μM, and Pi = 1 mM. Under these conditions, will the reaction go spontaneously from left to right? [Note: the concentration of water is always taken to be 1 M]

Explain neutralized point in the titration of a weak acid : The pH at the ¼ neutralized point in the titration of a weak acid is 3.958. What is the pKa of this acid

User Account

All Pages