What is the average expected rate of return

Assignment Help Macroeconomics
Reference no: EM13324288

An asset cost $120 today. you will hold it for one year then sell it. there is a 25% chance that it will be worth $100 in a year, 25% chance it will be $115 in a year and a 75% chance it will be worth $140. what is the average expected rate of return?

Reference no: EM13324288

Questions Cloud

What are the main characteristics of an oligopoly : What are the main characteristics of an oligopoly? Give an example of an industry with an oligopolistic structure. What are the firms in this industry?
Describe the probable impact of an increase in government : Describe the probable impact of an increase in government spending assuming no change in taxes or private spending and less than full-employment output.
State in what happens to the aggregate demand curve : Using the aggregate demand-aggregate supply model, explain how the depreciation of the US dollar in terms of foreign currencies would affect the economy.
Describe how the federal reserve can affect the money supply : Describe how the Federal Reserve can affect the money supply and interest rates.
What is the average expected rate of return : An asset cost $120 today. you will hold it for one year then sell it. there is a 25% chance that it will be worth $100 in a year, 25% chance it will be $115 in a year and a 75% chance it will be worth $140.
How does this affect a firm efforts to maximize profits : In spite of the fact that firms do not make payments on resources they own, these resources still have an opportunity cost. How is this possible, and
What does it mean for the yed : If the yed for a product is equal to one , is it a basic or a luxury good? If ?Qd% does not change , what does it mean for the Yed?
The fed earns enough revenue so that it never has to grovel : The Fed earns enough revenue so that it never has to grovel before a congressional appropriations committee for funding. What purpose is served by this fact?
Describe how households and businesses are slowing down the : Describe how households and businesses are slowing down the circular flows of money and goods and services during the economic slump.

Reviews

Write a Review

Macroeconomics Questions & Answers

  Elucidate managers can reduce their firms financing cost

Elucidate how managers can reduce their firm's financing cost.

  What would be combined effect of two events on summer

A recent news story reported that OPEC is expected to decrease the supply of oil next summer. Summer is traditionally a time of increased demand for oil because of the many families driving and flying to vacation sites

  Concept of the costs and supply

Suppose your telephone plan charges you $25 per month plus ten cents per minute for long distance calls. Write an equation that describes your monthly telephone account.

  Why dell usually reacts more quickly and more substantially

Dell Computer Corp., the world's largest personal-computer maker, is keenly aware of everything its rival PC manufacturers decide to do. Explain why Dell usually reacts more quickly and more substantially to pricing, product design

  Effectively reflect the true marketplace benefit and price

What do you think that they would be able to effectively reflect the true marketplace benefit and price.

  Decrease average weekly work hours if the income effect

In comparing two otherwise identical industries X and Y, an economist finds that labor demand is more elastic in industry X. Which of the following would support this finding?

  Suppose that the money market is initially in equilibrium

Suppose that the money market is initially in equilibrium for an economy. Explain with the aid of a diagram how the market adjusts to.

  Calculate present worth of the cost

The Present Worth (PW) of the cost (- Installed cost and operating cost + Salvage value) of Westinghome is most nearly

  Illustrate what is more important for them to monitor

Illustrate what is more important for them to monitor and target, inflation or interest rates.

  What president roosevelt might have been trying to achieve

In 1939, with the U.S. economy not yet fully recovered from the Great Depression, President Roosevelt proclaimed that Thanksgiving would fall a week earlier than usual so that the shopping period before Christmas would be longer.

  Explain two-tiered declining block method

Given that an individual has paid the initial minimum charge, do you expect her to consume less than the amount to which the minimum charge entitles her? To answer this question properly, you need to superimpose some indifference curves on the sam..

  Poverty fighting measure

The minimum wage is used by governments as poverty fighting measure. The use of such means of creating equity among the masses does not always result in desired outcome.

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