Determine the return the investment

Assignment Help Finance Basics
Reference no: EM1350878

The expected return for an investment is 30%. If we know the following information about the return distribution of the investment, what return will the investment produce if the economic climate is average?

Climate Return Probability

Poor 20% 0.30
Average 0.50
Exceptional 40% 0.20

 

Reference no: EM1350878

Questions Cloud

Organizational behavior - organizational and job design : How would you describe Hewlett Packard on each of the 6 basic design dimensions?
Explain what is the best explanation for leadership : Explain What is the best explanation for so many different definitions of leadership
What tension must the string be placed : suppose the apparatus as used in this lab: A cube of mass M = 500 g and side length 30 mm is free to spin on an axis through the center of one face. A massless pulley on this axis has a diameter of 2r = 10 mm. An object with m = 50 g is hung from ..
Control-creativity compatibility : Is the evaluation and control process appropriate for a corporation that emphasizes creativity? Are control and creativity compatible?
Determine the return the investment : The expected return for an investment is 30 percent. If we know the following data about the return distribution of investment, determine the return the investment produce if the economic climate is average?
Contracting principles and specific performance duties : Describe the differences between the following contracting principles relating to disputes remedied with damages to the aggrieved party: specific performance, compensatory damages, liquidated damages, and punitive damages.
Determining principles of internal control : Identify the principles of internal control. Give an example of each principle. Are there any limitations to a sound internal control system?
Explain jeff is a salesperson for a building materials : Explain Jeff is a salesperson for a building materials company and has been calling unsuccessfully on LaTasha for several weeks
Stages of sensorimotor cognitive development : Cognitive Development List the six specific stages of Sensorimotor Cognitive Development that infants and toddlers move through.

Reviews

Write a Review

Finance Basics Questions & Answers

  Determine operating cash flow

A project has a contribution margin of $5, projected fixed costs of $13,000, projected variable cost per unit of $12, Determine operating cash flow for the project.

  Foreign corporate tax rate

Assume England raised its corporate tax rate by 1 percentage point from 40% to 41%. How would this raise affect the economics of U.S.-U.K. foreign expansion project?

  Computation of yield to maturity and current market price

Computation of yield to maturity and current market price of the bonds and what is the difference in current market prices of the two bonds

  Collection and disbursement techniques with it description

Collection or else disbursement techniques with it description and the bank collects receipts in a post office box for the firm

  Costs of financial distress

The Salad Oil Storage Company (SOS) has financed a large part of its facilities with the long-term debt. There is the significant risk of default, but company isn't on the ropes yet. Describe

  Computation of hedging position with options

Computation of hedging position with options and given that you hedge your position with options, create a probability distribution for U.S. dollars to be received in 90 days

  Computation of minimum expected annual returns

Computation of minimum expected annual returns and what is the minimum expected annual returns for stocks 3 will enable Glenda to achieve her investment requirement

  Alternative international equity investment instruments

Explain 3-5 ways individual investors can access the international equity market, with the brief description of how each instrument works, advantages, and risks.

  Comparing machines with unequal lives

Vandalay Industries is considering the purchase of a new machine for the production of latex. If the company plans to replace the machine when it wears out on a perpetual basis, the EAC for machine A is $ and the EAC for machine B is $ . Therefore..

  Describe labour cost

Describe Labour Cost and how many testers should they use to carry out the testing effort

  Explaining strengthening basis benefits a short hedge

Describe why strengthening basis benefits a short hedge and hurts a long hedge.

  Calculate the adjusted present value

Suppose that a company is planning to undertake a project costing $2,000,000. This money will be depreciated using straight line depreciation over 5 years.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd