Consider an asset that costs $130 today. You are going to hold it for 1 year and then sell it. Suppose that there is a 25 percent chance that it will be worth $100 in a year, a 25 percent chance that it will be worth $120 in a year, and a 50 percent chance that it will be worth $160 in a year.
Instructions: In part a, round your answer to 3 decimal places. In parts b and d, round your answers to 2 decimal places. If you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers.
a. What is its average expected rate of return?
b. Next, figure out what the investment’s average expected rate of return would be if its current price were $140 today.
c. Does the increase in the current price increase or decrease the asset’s average expected rate of return?
(Click to select) Decrease Increase
d. At what price would the asset have a zero average expected rate of return?
This is the last question in the assignment. To submit, use Alt + S. To access other questions, proceed to the question map button
Consider a system, at temperature 400 K, consisting of 1000 molecules, each having only two accessible states, with energies ε0 = 0 and ε1 = 0.1 eV, respectively. Find(a)...Jun 09 2020
Jan sculptures as a hobby. If she sells $2,000 worth of sculptures and incurs $2,500 of expenses, she will report:a. $2,000 of itemized deductionsb. $2,500 of itemized d...Jul 16 2021
The _____ margin is calculated as the number of units sold times the contribution margin. A.holding costB.grossC.profitD.fixed costE.overhead rate32._____ refers to w...Jan 10 2020
A researcher investigated the effect of the volume of the background noise on participants accuracy rates while performing a boring task. He tested 3 groups of randomly s...Apr 13 2020
The distillation column shown in the drawing is used to distill a binary mixture. Symbols x, y, and z denote mole fractions of the more volatile component, while B, D, R,...Jul 25 2020
Rank these systems in order of decreasing entropy.A) 1 mol carbon tetrafluoride gas at 273k 40LB) 1 mol krypton gas at 273K 40LC) 1/2 mol krypton gas at 100k 20LD) 1 mol ...May 23 2021
In the regression equation, ________ is the value that we are attempting to predict.Jul 22 2021
An ordinary share offering $ 1.5 dividend per share in the current year. If the constant growth rate of dividend is 6%. What is the next year dividend? What is the divide...Aug 21 2020
EXPLORING CONCEPTSUsing a DerivativeLet f(0) = 3 and for all x in the interval [–5, 5]. Determine the greatest and least possible values of f(2).Aug 05 2021
Variable costs, fixed costs, relevant range. Gummy Land Candies manufactures jaw-breaker candies in a fully automated process. The machine that produces candies was purch...Jul 19 2020