Consider the following information about Stocks I and II: Rate of Return If State Occurs State of Probability of Economy State of Economy Stock I Stock II Recession .30 .08 −.27 Normal .45 .19 .14 Irrational exuberance .25 .13 .47 The market risk premium is 8 percent, and the risk-free rate is 6 percent. (Do not round intermediate calculations. Enter your standard deviation answers as a percent rounded to 2 decimal places, e.g., 32.16. Round your beta answers to 2 decimal places, e.g., 32.16.) The standard deviation on Stock I's return is percent, and the Stock I beta is . The standard deviation on Stock II's return is percent, and the Stock II beta is . Therefore, based on the stock's systematic risk/beta, Stock is "riskier".
In: Finance
| Consider the following information about Stocks I and II: |
| Rate of Return If State Occurs | |||||||||
| State of | Probability of | ||||||||
| Economy | State of Economy | Stock I | Stock II | ||||||
| Recession | .26 | .06 | −.21 | ||||||
| Normal | .51 | .18 | .08 | ||||||
| Irrational exuberance | .23 | .07 | .41 | ||||||
|
The market risk premium is 5 percent, and the risk-free rate is 4 percent. (Do not round intermediate calculations. Round your answers to 2 decimal places, e.g., 32.16. Enter your return answers as a percent. ) |
|
The standard deviation on Stock I's return is percent, and the Stock I beta is . The standard deviation on Stock II's return is percent, and the Stock II beta is . Therefore, based on the stock's systematic risk/beta, Stock (Click to select) II I is "riskier". |
In: Finance
Can you pleasee answer these questions:
1. What are the mechanisms of tolerance used by resistant or engineered plants. Give an example.
2. What is the pesticidal crystal protein Bt.
3. What is Bt toxin mode of action, explain in detail.
Thank you in advance, I would appreciate it a lot, and I am grateful forever!!!
In: Biology
In words, but making use of equations where appropriate, explain how the Principal of Conservation of Linear Momentum is a demonstration of Newton’s third law of motion. In particular, consider a simple collision between two objects. The collision may be either elastic or inelastic. It may be head-on or oblique. State how the changes in motion as a result of this collision relate to Newton’s Third Law. Finally expand your reasoning to cover a many particle system.
In: Physics
You are a handicraft dealer in Australia and import materials from New Zealand. You have accounts payable to your suppliers from New Zealand in New Zealand Dollars.
1.)a.) Explain the exposure risk your company will face if you do not hedge transactions?
b.) If you hedge, which hedging method would you use? (Forward Market Hedge, Money Market Hedge,Options Market Hedge,Cross-Hedging Minor Currency Exposure,Hedging Contingent Exposure or Hedging Recurrent Exposure with Swap Contracts)
State your reason why?
In: Finance
Please answer the correct answer and explain it.
1. In the 1980s, one often-heard explanation for the
low levels of net investment in the US and UK was that
a) developed economies had no incentives for acquiring
new capital
b) investment opportunities were limited because the
already large capital stock was inducing a low marginal product of
capital
c) depreciation and obsolescence were so rapid that
firms could barely keep up with demands for replacing existing
capital
d) stock market participants sought short-term capital
gains from market appreciations rather than long term dividends
from investment
e) rapid price inflation was creating excessive
investor uncertainty
Explain your Answer:
2. Comparing State economies to that of the US as a
whole shows that
a) about half the States are in recession at any point
in time
b) when the US enters a recession, about 20% of the
States experience economic expansion, and vice versa
c) there is very little correlation between the
national and regional economies
d) there is a highly positive correlation between the
national economy and most State economies
e) the 12 Federal Reserve districts experience business
cycles independently of each other
Explain your Answer:
3. Inflation is primarily a problem
a) because even low inflation rates severely hamper GDP
growth
b) for those who are heavily indebted
c) when it is volatile and thus unpredictable
d) because it is severely underestimated, especially
when products are improving in quality
e) for accounting and record-keeping, but it does not
affect the actual trading of goods and services
Explain your Answer:
The next two questions refer to the following.
Consider the following hypothetical annual growth rates of real GDP:
Long run trend 1996
1997 1998 1999 2000
2001 2002 2003
2.5% 3.0% 2.5%
2.0% -1% 0.5% 2.0%
2.5% 3.0%
1. 1998 appears to have been a year of
a) economic expansion
b) recession
c) depression
d) growth recession
e) stagflation
Explain your Answer:
2. Economic recovery from recession appears to have
begun in
a) 1999
b) 2000
c) 2001
d) 2002
e) 2003
Explain your Answer:
In: Economics
Question – 4 20 Marks
A Hardware company is considering a new project to improve its manufacturing capacity. A new project requires the use of an existing machine that would otherwise be sold.
The managing Director (MD) of the Company is aware about the concept of relevant costing but he is not clear about the application of it in a particular situation.
The following information is available about the machine
Original purchase price = OMR 40,000
Net Book Value of Machine = OMR 10,000
Current sales value (estimated) = OMR 9,000
Required:
10 Marks
In: Accounting
State and explain five Entrepreneurial opportunities.
In: Operations Management
In: Psychology
Describe one female reproductive pathology and one male reproductive pathology that you found most interesting from this module. Describe the condition and state what might be done to prevent and/or treat the condition. Then state what intrigued you about this condition.
In: Nursing