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.
Midwest Fastener Supply stock is expected to return 16 percent in a booming economy, 12 percent in a normal economy, and...
Bernard Companies stock has an expected return of 10.75 percent. The stock is expected to return 13.5 percent in a normal economy and 19.6 percent in a boom. The probabilities of a recession, normal economy, and a boom are 5 percent, 80 percent, and 15 percent, respectively. What is the expected return if the economy is in a recession? Multiple Choice −42.77 percent −63.76 percent −59.80 percent −36.72 percent −68.20 percent Crabby Shores stock is expected to return 15.7 percent...
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 12 percent in a booming economy, 6 percent In a normal economy, and lose 2 percent In a recessionary economy. There is a 15 percent probablity of a boom, a 74 percent chance of a normal economy, and a 11 percent chance of a recession. What is your expected rate of return on thls stock? 5.33 percent 6.00 percent 3.01 percent 6.25 percent 6.02 percent
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, 9 percent in a normal economy and lose 4 percent in a recessionary economy. There is a 13 percent probability of a boom, a 75 percent chance of a normal economy. What is your expected rate of return on this stock? 8.79 8.18 4.00 7.18 7.83
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 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 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?
North Around, Inc. stock is expected to return 22 percent in a boom, 13 percent in a normal economy, and −15 percent in a recession. The probabilities of a boom, normal economy, and a recession are 6 percent, 92 percent, and 2 percent, respectively. What is the standard deviation of the returns on this stock? Please explain your answer.
Bernard Companies stock has an expected return of 9.5 percent. The stock is expected to return 11 percent in a normal economy and 13.4 percent in a boom. The probabilities of a recession, normal economy, and a boom are 10 percent, 84 percent, and 6 percent, respectively. What is the expected return if the economy is in a recession?