The returns on the common stock of Apple closely follow the economy. In a booming economy,...
The common stock of Manchester & Moore is expected to earn 14 percent in a recession, 7 percent in a normal economy, and lose 4 percent in a booming economy. The probability of a boom is 15 percent while the probability of a recession is 5 percent. What is the expected rate of return on this stock? a. What is the expected rate of return on this stock? 5.7% b. What is the variance of the returns on this stock?...
You recently purchased a stock that is expected to earn 18 percent in a booming economy, 13 percent in a normal economy, and lose 4 percent in a recessionary economy. There is 21 percent probability of a boom, 68 percent chance of a normal economy, and 11 percent chance of a recession. What is your expected rate of return on this stock? 12.18% 3.70% 10.33% 6.09% 9.00%
You recently purchased a stock that is expected to earn 12% in a booming economy, 8% in a normal economy and lose 5% in a recessionary economy. There is a 15% probability of a boom, a 75% chance of a normal economy, and a 10% chance of a recession. What is your expected rate of return on this stock?
You recently purchased a stock that is expected to earn 12 percent in a booming economy, 6 percent in a normal economy, and lose 2 percent in a recessionary economy. There is 15 percent probability of a boom, 74 percent chance of a normal economy, and 11 percent chance of a recession. What is your expected rate of return on this stock? 5.33% 6.25% 6.00% 3.01% 6.02%
You recently purchased a stock that is expected to earn 11 percent in a booming economy, 5 percent in a normal economy, and lose 3 percent in a recessionary economy. There is 15 percent probability of a boom, 72 percent chance of a normal economy, and 13 percent chance of a recession. What is your expected rate of return on this stock? Multiple Choice 7.69% 4.86% 4.33% 2.43% 5.33%
You recently purchased a stock that is expected to earn 25 percent in a booming economy, 10 percent in a normal economy, and lose 22 percent in a recessionary economy. There is a 4 percent probability of a boom and a 50 percent chance of a normal economy. What is your expected rate of return on this stock?
You recently purchased a stock that is expected to earn 19 percent in a booming economy, 8 percent in a normal economy, and lose 28 percent in a recessionary economy. There is a 20 percent probability of a boom and a 70 percent chance of a normal economy. What is standard deviation on this stock?
Midwest Fastener Supply stock is expected to return 16 percent in a booming economy, 12 percent in a normal economy, and −3 percent in a recession. The probabilities of an economic boom, normal state, or recession are 12 percent, 80 percent, and 8 percent, respectively. What is the expected rate of return on this stock? Pleas explain your answer.
If the economy is normal, Stock A is expected to return 11.00%. If the economy falls into a recession, the stock's return is projected at a negative 14%. If the economy is in a boom the stock has a projected return of 20.0% The probability of a normal economy is 60% while the probability of a recession is 20% and boom is 20%. What is the expected return of this stock? **ENTER YOUR ANSWER AS A PERCENTAGE WITH ONE DECIMAL...
You recently purchased a stock that is expected to earn 25 percent in a booming economy, 10 percent in a normal economy, and lose 26 percent in a recessionary economy. There is a 4 percent probability of a boom and a 80 percent chance of a normal economy. What is your expected rate of return on this stock?