|
State of Economy |
Probability of State of Economy |
Return of Stock A if State Occurs |
Return of Stock B if State Occurs |
|
Recession |
0.30 |
-0.20 |
0.10 |
|
Normal |
? |
0.30 |
0.20 |
|
Boom |
0.15 |
0.40 |
0.30 |
What is the expected return for Stock A?
What is the standard deviation for Stock A?
Suppose you have $50,000 total. If you put $20,000 in Stock A and the remainder in Stock B, what are the portfolio returns in each state?
Suppose you have $50,000 total. If you put $20,000 in Stock A and the remainder in Stock B, what will be the expected return of your portfolio?
Suppose you have $50,000 total. If you put $20,000 in Stock A and the remainder in Stock B, what will be the standard deviation of your portfolio?
In: Finance
|
State of Economy |
Probability of State of Economy |
Return of Stock A if State Occurs |
Return of Stock B if State Occurs |
|
Recession |
0.20 |
-0.20 |
0.05 |
|
Normal |
? |
0.20 |
0.22 |
|
Boom |
0.25 |
0.30 |
0.25 |
In: Finance
Given the prominence of chronic traumatic encephalopathy in the news, and its relation to violence, self-harm, and neurodegeneration, state your opinion about current “return-to-play” strategies in: (a) youth sports; (b) high school sports; (c) college sports; and (d) professional sports. Who should be in charge of enforcing these policies?
In: Biology
Economic growth
a. According to the Solow model of economic growth, what determines the growth rate of real income per person in the very long run (steady state)? Explain.
b. What public policies have been proposed to increase the rate of economic growth? Explain.
In: Economics
Many states have legalized the sale of marijuana for personal and/or medical purposes. However, it is still a federal crime to sell marijuana in any of the 50 states, regardless of the state laws. Income from any and all sources, including illegal activities, is taxable at the federal level, including income from the sale of marijuana. What has the tax court ruled about tax deductions for business expenses for those engaged in the sale of marijuana? Cite and summarize at least one US Tax Court case to support your answer
In: Finance
An auto plant that costs $50 million to build can produce a new line of cars that will produce net cash flow of $35 million per year if the line is successful, but only $1 million per year if it is unsuccessful. You believe that the probability of success is about 20 percent. The auto plant is expected to have a life of 12 years and the opportunity cost of capital is 10 percent. What is the expected net present value of building the plant? Please state your answer in millions and in 2 decimal places.
In: Finance
In: Mechanical Engineering
Collectively, the 1000 residents of River Heights value swimming
in Red River at $100
000. A nearby factory pollutes the lake water, and would have to
pay $50 000 for nonpolluting equipment.
a) Describe a Coase-like private solution.
b) Discuss about five reasons why this solution might not work in
the real world?
c) Discuss two public policies that can correct the externality and
which one will be more
efficient.
In: Economics
According to B.M. Dickens, the possibility of sex selection unites the views of many people with conservative (religious) views with the views of many feminists. What, specifically, do they agree about? Do they hold the view they agree upon for the same reasons? Explain your answer.
In: Nursing
In: Economics