Consider the following information:State of EconomyRecessionBoomProbability ofState of Economy.20.80Expected returnRate of Return ifState OccuraCalculate the expected return.Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.%-.13.19

State of Economy Probability of State of Economy Rate of return if state Occurs Recession 0.2…

Consider the following information: Probability of State of Economy State of Economy Recession .20 Boom .80 Rate of Return if State Occurs -.13 .19 Calculate the expected return. Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Expected return

Consider the following information: Probability of State of Economy State of Economy Recession .20 Boom .80 Rate of Return if State Occurs -.13 .19 Calculate the expected return. Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Expected return

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 14MC: This calculation determines profitability or growth potential of an investment, expressed as a...

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You are given the following information: State of Economy Probability ofState of Economy Rate of ReturnIf State Occurs Depression .07 −.097 Recession .17 .067 Normal .42 .138 Boom .34 .219 Calculate the expected return. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Expected return % Calculate the standard deviation. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Standard deviation %
Match each term with the best definition or descriptor. NPV is __________ ( a unitless ratio, a unit of time, a dollar vallue, or a rate of return). IRR is ___________ ( a unitless ratio, a unit of time, a dollar vallue, or a rate of return). Profitability index is __________( a unitless ratio, a unit of time, a dollar vallue, or a rate of return).
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You are given the following information: State of Probability of Rate of Return Economy State of Economy If State Occurs Depression Recession .13 -102 22 .062 Normal .48 .133 Boom .17 .214 a. Calculate the expected return. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. Calculate the standard deviation. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a. Expected return b. Standard deviation % %
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can you explain why t-bill 7 % was used for calculating the CAPM return? I think it has something to do with % return on t-bill not sure
s XYZ stock price and dividend history are as follows: Beginning-of-Year Dividend Paid at Year-End Price $4 $ 124 135 115 120 Year 2018 2019 2020 2021 An investor buys six shares of XYZ at the beginning of 2018, buys another two shares at the beginning of 2019, sells one share at the beginning of 2020, and sells all seven remaining shares at the beginning of 2021 Required: a. What are the arithmetic and geometric average time-weighted rates of return for the investor? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Arithmetic time weighted average returns Geometric time weighted average returns b-1. Prepare a chart of cash flows for the four dates corresponding to the turns of the year for January 1, 2018, to January 1, 2021. (Negative amounts should be indicated by a minus sign.) Date 01/01/2018 01/01/2019 01/01/2020 01/01/2021 % % Cash Flow D