Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. during a normal economy, an investment in common s

During a normal economy, an investment in common stock of D&F Oil provides 15 percent...

90.2K

Verified Solution

Question

Finance

During a normal economy, an investment in common stock of D&F Oil provides 15 percent per annum rate of return. During a recession, the rate of return is negative 12 percent and during a boom, the rate of return is 35 percent. The probability of a normal economy is 80 percent while the probability of a recession is 8 percent and the probability of a boom is 12 percent.

  1. What is the expected return for Millennial Lithium Inc.?

  1. What is the standard deviation of Millenial Lithium Incs expected return?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Advance Math
1.2K views

a) y''(x)-3y'(x)=8e3x+4sinx b) y''(x)+y'(x)+y(x)=0 c) y(iv)(x)+2y''(x)+y(x)=0

Biology
1.2K views

Explain the importance of glycolipids in the plasma membrane, identify where they are produced inside the...

Psychology
1.2K views

Describe elements of classical conditioning by applying the Pavlov's experiment with a dog.

Physics
1.2K views

20 In the meter reads 30 V when connected across tance Calculate what the same...

Basic Math
1.2K views

Find the reference angle for the given angle 17 3 O O O w a...

Basic Math
1.2K views

Which of the x-values are solutions to the following inequality?38 < xChoose all answers that...

Calculus
1.2K views

make sure im right if you could explain the steps so i can see if...

Accounting
1.2K views

How are balanced scorecards adapted for NPGOS? Do you think they are effective management tools...

Accounting
1.2K views

State the accounting equation and define each of its terms. What is the logic behind...

Accounting
1.2K views

Reader Corp.Wal-Mart reported the following in its tax note: [In Millions, Except Per Share Data]...

Finance
1.2K views

Amber is considering the purchase of 100 shares of common stock which are currently selling...

Finance
1.2K views

nothing is needed Tony Garcia and Robert Armstrong are both a newly minted three...