An investor buys a stock that will return $200 profit if it goes up today and lose $500 if it goes down. Based on the market trend, there is 70% chance that the stock will go up and 20% chance that it will go down and 10% chance it will stay the same. What is the expected amount of return

Answers

Answer 1

Answer:

$240

Explanation:

The expected amount of return can be estimated by adding the product of the potential outcomes and their probabilities or chances of their occurrence.

This can be calculated for this question as follows:

U = Profit when the stock goes up = $200

D = Profit when the stock goes down = $500

S = Profit when the stock stays the same = 0$

Uc = The chance or probability of the stock going up = 70%

Dc = The chance or probability of the stock going down = 20%

Sc = The chance or probability of the stock staying the same = 10%

Therefore, we have:

Expected amount of return = (U * Uc) + (D * Dc) + (S * Sc) = ($200 * 70%) + ($500 * 20%) + (0$ * 10%) = $140 + $100 + $0 = $240

Therefore, the expected amount of return is $240.

Related Questions

Steps to follow when preparing a budget

Answers

Answer:

1. Assess your financial resources

The first step is to calculate how much money you have coming in each month. This might be investment income, government assistance, student loans, employment income, disability benefits, retirement pensions or money from other sources.

2. Determine your expenses

Next you need to determine how you spend your money by reviewing your financial records. If your records aren't clear, consider keeping a financial diary to track your spending.

Be sure to separate the fixed expenses that you must meet (mortgage, rent, car payments, insurance) from variable expenses (food, clothing, entertainment, charitable gifts). Once you see your spending patterns, you may be able to make adjustments to certain expenses.

3. Set goals

Establish a list of the goals you wish to achieve. These can be long-term goals like purchasing property or funding your retirement. Or they can be short-term goals such as home improvements or car maintenance.

4. Create a plan

Once you've figured out how much money is coming in and where it's going, you can put together a plan that matches your goals with your financial situation.

5. Pay yourself first

When you pay yourself first you simply set aside a certain amount of money each month to go into an account that you will not touch. You can set up a separate savings account for infrequent but anticipated expenses, such as property taxes, vacations, automobile insurance or car maintenance. Our Jumpstart® is specially designed for these types of savings plans.

6. Track your progress

At the end of each month, you should re-evaluate your budget. Compare your actual expenses and income to your budget and make appropriate adjustments.

Once your budget is done, things are bound to change. They always do. So stay flexible. And remember, a budget is only a guideline. It doesn't factor in non-financial considerations that can result from drastic changes in spending habits.

Looking at the graph, if price was $2.20 per gallon and decreased to $1.60 per gallon, how does quantity supplied of gasoline change?
A. 640 million gallons to 720 million gallons
B. 720 million gallons to 600 millions gallons
C. 720 million gallons to 640 million gallons

Answers

If the price decrease from $2.20 to $1.60 the quantity will decrease as well from c. 720 million gallons to 640 million gallons.

What is supply?

Supply is the amount of products, goods, or services that are offered and available to consumers at each level price in a certain period of time.

The graph or curve of supply is always from the left bottom to the right top, it indicates if the price increases the quantity will increase as well. The given graph tells us the amount of offered product at each level price.

If looking at the graph, we can know at the price of $2.20 the quantity supplied is at 720 million, and at the price of $1.60 the quantity supplied is at 640 million. So option C is correct to describe the change of quantity supplied of gasoline.

Your question is incomplete, but most probably your full question was

(image attached)

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Looking at the graph, if price was $2.20 per gallon and decreased to $1.60 per gallon, how does quantity

Xinhong Company is considering replacing one of its manufacturing machines. The machine has a book value of $42,000 and a remaining useful life of 4 years, at which time its salvage value will be zero. It has a current market value of $52,000. Variable manufacturing costs are $33,300 per year for this machine. Information on two alternative replacement machines follows:
Alternative A Alternative B
Cost $121,000 $113,000
Variable manufacturing costs per year $22,500 $10,200
Required:
1. Calculate the total change in net income if Alternative A is adopted. (Cash outflows should be indicated by a minus sign.)
ALTERNATIVE A: INCREASE OR (DECREASE) IN NET INCOME
Cost to buy new machine
Cash received to trade in old machine
Reduction in variable manufacturing costs
Total change in net income $0
2. Calculate the total change in net income if Alternative B is adopted. (Cash outflows should be indicated by a minus sign.)
ALTERNATIVE B: INCREASE OR (DECREASE) IN NET INCOME
Cost to buy new machine
Cash received to trade in old machine
Reduction in variable manufacturing costs
Total change in net income $0
3. Should Xinhong keep or replace its manufacturing machine? If the machine should be replaced, which alternative new machine should Xinhong purchase?
Chose below:
(a) Keep the manufacturing machine.
(b) Alternative A.
(c) Alternative B.

Answers

Answer: Check attachment

Explanation:

1. Calculate the total change in net income if Alternative A is adopted.

The answer is -$25800. Check attachment for further explanation.

2. Calculate the total change in net income if Alternative B is adopted.

The answer is $31400. Check attachment for further explanation.

3. Should Xinhong keep or replace its manufacturing machine? If the machine should be replaced, which alternative new machine should Xinhong purchase?

The machine should be replaced with alternative B has it generates a change in net income by $31400.

Xinhong Company is considering replacing one of its manufacturing machines. The machine has a book value

introduction of business presentation on investment: securities

Answers

Securities play a vital role in modern investment portfolios, providing individuals and organizations with opportunities to grow their wealth and achieve their financial goals.

Securities are financial instruments that represent ownership or a creditor relationship with a corporation, government, or other organizations. They are tradable assets, such as stocks, bonds, mutual funds, and exchange-traded funds (ETFs).

The primary goal of investing in securities is to generate returns through capital appreciation, income generation, or a combination of both. By investing in securities, individuals and businesses can diversify their portfolios, mitigate risks, and potentially earn higher returns than traditional savings accounts.

Securities offer various advantages to investors. Stocks provide an ownership stake in a company, offering potential capital gains and dividend income. Bonds, on the other hand, represent loans made to governments or corporations and offer fixed interest payments. Mutual funds and ETFs enable investors to pool their money and gain exposure to a diversified portfolio managed by professionals.

Investing in securities requires careful consideration of individual risk tolerance, investment horizon, and financial objectives. It is crucial to conduct thorough research, analyze market trends, and seek professional advice when making investment decisions.

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A break-even analysis includes operating expenses and total monthly debt payments,
plus
school costs.
O gross profit margin.
Ihr
net profit margin.
zero term margin.

Answers

Answer:

Gross profit margin.

Explanation:

Break-Even Analysis enables a business to know how much cash it has under given situations by helping it know how much sales it needs in order to have a certain amount of cash.

It is calculated by the formula;

(Operating Expenses + Annual Debt Service)/Gross Profit Margin = Break-Even Sales

Operating Expenses in this equation is net of Depreciation as depreciation is a non-cash expense.

What describes the relationship between edge computing
and Cloud computing?

Answers

The relationship between Edge computing and cloud computing is a that edge computing is a subsection of cloud computing. Cloud computing is about hosting applications in a core data centre whlie edge computing is about hosting applications closer to end users either in smaller edge data centres.

What is computing?

Computing can be defined as the use of a computer to process data or perform calculations. Computing may encompass the design and development of software and hardware systems for a broad range of purposes often structuring processing and managing any kind of information

Therefore edge computing is a subsection of cloud computing

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How to get a series 7 license

Answers

Take and Pass SIE exam

Secure a Sponsorship

Study for series 7 exam

Pass it :)

Supply Club, Incorporated, sells a variety of paper products, office supplies, and other products used by businesses and individual consumers. During July 2024, it started a loyalty program through which qualifying customers can accumulate points and redeem those points for discounts on future purchases. Redemption of a loyalty point reduces the price of one dollar of future purchases by 20% (equal to 20 cents). Customers do not earn additional loyalty points for purchases on which loyalty points are redeemed. Based on past experience, Supply Club estimates a 60% probability that any point issued will be redeemed for the discount. During July 2021, the company redeemed 12,200 points and sold additional product of $152,500, so it recorded $164,700 of revenue. The aggregate stand-alone selling price of the purchased products is $164,700. Seventy percent of sales were cash sales, and the remainder were credit sales.

Required:
1. & 2. Prepare Supply Club’s journal entry to record July and August sales. During August, customers redeem loyalty points on $73,200 of merchandise. Seventy-five percent of those sales were for cash, and the remainder were credit sales.

Answers

A journal entry is the record of the financial transaction of a business in its financial books.

(1)

Cash ($164,700 * 70%) 115,290

Accounts Receivable ($164,700 * 30%) 49,410

Sales revenue 163,053 Deferred Revenue - Loyalty Point 1,647

(2)

Cash (73,200 * 75% * 70%) 38,430

Accounts Receivable (73,200 * 25% * 70%) 12,810

To Deferred Revenue 16,470

To Sales Revenue 67,710

WORKING NOTES:

a) Price of loyalty points = (Loyalty points × Estimated redemption) =$12,200 × 20% × 60%

= $1,464

b) Total Stand−alone selling price

= Stand−alone selling price of the purchased product + Stand−alone selling price of the loyalty points

= $164,700+$1,464 = $166,164

c) Percentage of FMV for loyalty points

= (Total stand-alone selling price FMV of loyalty points)

= ($164,700 + $1,464 = $166,164) = 1%

d) Percentage of FMV for purchased products

= (Total stand−alone selling price FMV for purchased products) = ($164,700 + $1,464 = $166,164) = 99%

e) Revenue allocation for the purchased product

= Package amount of purchased products × Percentage of FMV for purchased products = ($164,700 × 99%) = $163,053.

(f) Revenue allocation for loyalty points

= Package amount of loyalty points × Percentage of FMV for loyalty points

= ($164,700 × 1%) = $1,647.

Answers

Physical inspection is part of a sight inspection

What are part of a sight inspection?

A sight inspection, better referred to as a site assessment or property evaluation, generally involves visiting a setting to analyze its state, usefulness, and any other concerning elements. The precise particulars of a sight inspection may differ contingent upon the aim of the inspection and the kind of asset being evaluated.

Regardless, a few routine segments of a sight inspection might incorporate:

Physical inspection: This necessitates observing the physical condition of the property, including its external and internal traits such as walls, flooring, roofing, installations, and utilities. The inspector can also look for signs of deterioration, wear and tear, and potential safety concerns.

Environmental examination: This could contain assessing the property's surroundings, for example, noise levels, air quality, availability, and any additional environmental factors that could alter its worth or practicality.

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What is the different between capital and revenue expenditure

Answers

Answer:

Typically, the purpose of capital expenditures is to expand a company's ability to generate earnings, whereas revenue expenditures include the operational costs of running a business and the maintenance costs that are necessary to keep the asset in working order.

Explanation:)

QUESTION 4: PROGRESS REPORT On the 20th of April 2023, The campus manager, Mr Manoto, requested the secretary in the SRC office, to compile a report on the progress of the revival day planning. In your report tasks that are completed are invitations for special guests and booking of live performers; the task committee is still busy with finalizing the design of the banners and T-shirt and sports bottle printing. Due to overspending on budget, you still have not booked catering and security for the day. Your report must be in memo format.

Answers

A sample memo based on the given question prompt is given below:

The Memo

Memorandum

To: Mr. Manoto, Campus Manager

From: SRC Office Secretary

Date: April 20th, 2023

Subject: Progress update for Revival Day planning

Esteemed Mr. Manoto,

Please find below a status report detailing advancements made in the preparations of the upcoming Revival Day ceremony. We have accomplished issuing invitations to prominent guests and securing prominent musical acts. Our committees are putting the finishing touches to banner design, T-shirt outfits, as well as customizing sport water bottles.

Conversely, budgetary concerns impede us from booking security or catering caterers essential for event operations. However, we are investigating ways to cut expenses while still delivering quality service. We will be prompt with updates about progress made through these alternative strategies.

Thank you for your kind ownership in this venture; rest assured that our team is steadfastly dedicated to ensuring an excellent Revival Day rally session.

Yours faithfully,

[Your name]

Answers

The most likely thing for Robyn to do is B. Find a new career outside the legal profession.

Why does Robyn need to leave the legal profession ?

Since he has lost his license to practice law, he would not be able to continue working as a lawyer or in any other legal capacity. In addition, his firing from the State Department would likely make it difficult for him to find employment in a related government agency.

Therefore, the most realistic option for Robyn would be to seek employment in a different field or industry. Appealing his case to the American Bar Association or taking his case to an appeals court would likely not be fruitful options, as his disbarment and firing from the State Department suggest that his ethical lapses were significant and serious.

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g Financial statements are linked within and across periods in that a) The income statement and the balance sheet are linked via retained earnings b) The statement of cash flows is linked to the income statement as net income is a component of operating cash flows c) The statement of cash flows is linked to the balance sheet as the change in the balance sheet cash account reflects the net cash inflows and outflows for the period d) All of the above e) None of the above

Answers

Answer:

Financial statements are linked within and across periods in that

d) All of the above.

Explanation:

The linkage of all the financial statements can be traced to how they share interconnected information about the financial position and performance of an entity. The three more prominent financial statements include the income statement for the period, the statement of cash flows, and the balance sheet. While the income statement shows the financial performance by determining the profitability, the statement of cash flows concentrates on the inflow and outflow of cash, and the balance sheet shows the financial position, disclosing the assets, liabilities, and equity balances.

A company borrows $10,000 at a nominal interest rate of 8% per year. How much interest will they owe after the first year?

Answers

8/100 multiplied by 10000

evaluate how business can apply pricing policy, eg. what informs their pricing policy

Answers

HBR first published this article in November 1950 as a practical guide to the problems involved in pricing new products. Particularly in the early stages of the competition, it is necessary to estimate demand, anticipate the effect of various possible combinations of prices, and choose the most suitable promotion policy. Then as the product’s market status matures, policy revisions become necessary. Joel Dean outlines the possible price strategies for each stage of a product’s market evolution and the various grounds for making a choice. To update his original statement, Mr. Dean has written a retrospective comment, which appears at the end of this article. He amplifies his earlier article with insights from intervening years and in light of such developments as inflation.

How to price a new product is a top management puzzle that is too often solved by cost theology and hunch. This article suggests a pricing policy geared to the dynamic nature of a new product’s competitive status. Today’s high rate of innovation makes the economic evolution of a new product a strategic guide to practical pricing.New products have a protected distinctiveness which is doomed to progressive degeneration from competitive inroads. The invention of a new marketable specialty is usually followed by a period of patent protection when markets are still hesitant and unexplored and when the product design is fluid. Then comes a period of rapid expansion of sales as market acceptance is gained.Throughout the cycle, continual changes occur in promotional and price elasticity and in costs of production and distribution. These changes call for adjustments in price policy.

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in 2019 the united states exported approximately ___ percent of all goods and services produced in the country.

Answers

In 2019 the united states exported approximately $1.6 trillion percent of all goods and services produced in the country.

In 2019, how much did the United States export?

The export of goods from the United States ranks second in the world. US goods exports to the rest of the world totaled $1.6 trillion in 2019, a decrease of $22.5 billion (1.4 percent) from 2018. Canada was the top buyer of US goods exported in 2019, accounting for 17.8% of the total.

Exports will rise in 2019. The top US exports are refined petroleum ($58.4 billion), crude petroleum ($52.3 billion), automobiles ($47.6 billion), integrated circuits ($44.2 billion), and petroleum gas ($34.7 billion). Canada ($218 billion), Mexico ($196 billion), China ($122 billion), Japan ($63.1 billion), and Germany ($59.2 billion) receive the majority of these exports. China has been the world's largest exporter of goods since 2009, with 2019 exports totaling $2.641 trillion. Both China's economy and exports have grown significantly.

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The value of data mining to the business is:

Answers

Answer:

Simple answer. Competitive advantage.

The value of data mining to a business is primarily the ability to find trends and patterns of knowledge from large amounts of data. Hence option C is correct.

By employing data mining techniques, businesses can extract valuable insights and actionable information from their vast datasets, enabling them to make informed decisions and gain a competitive edge.

Data mining algorithms can uncover hidden relationships, identify patterns, and detect anomalies within the data, providing valuable business intelligence. This process allows organizations to understand customer behavior, optimize marketing strategies, improve operational efficiency, and mitigate risks.

While data mining can also facilitate the retrieval of specific information for executive decision-making, its true power lies in its capacity to reveal meaningful patterns and trends that might otherwise remain undiscovered.

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Complete question is as follow:

The value of data mining to the business is:

O a. The ability to find the needle in the haystack.

O b. The ability to find a specific customer name and account number from large amounts of data.

O c. The ability to find trends and patterns of knowledge from large amounts of data.

d. The ability to find the location of information needed for executive decisions.

Inventory turnover measures:

a. the speed of receivables collection.
b. the efficiency in turning inventory into sales.
c. none of the these.
d. liquidity.
e. liquidity and the efficiency in turning inventory into sales.

Answers

The Inventory turnover measures the efficiency in turning inventory into sales.

What is Inventory turnover?

In essence, the Inventory turnover measures the number of times that an inventory is acquired and sold or used during a period.

Hence, the Inventory turnover measures the efficiency in turning inventory into sales.

Therefore, the Option B is correct.

Answers

We can see here that the statement that best matches the image is Inefficient production / Underutilization.

What is inefficient production?

Inefficient production refers to a situation where resources are not utilized optimally or where the production process does not achieve the highest possible output given the available resources and technology. It implies that the production process is not operating at its maximum efficiency or effectiveness.

Addressing inefficiencies in production is crucial for organizations to enhance productivity, reduce costs, improve competitiveness, and maximize their output.

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What causes sudden infant death

Answers

SIDS, unintentional suffocation while sleeping, and other sudden, unforeseen newborn deaths are examples of abrupt, unexpected infant fatalities.

Although the exact etiology of SIDS is unidentified, many physicians and researchers think that it is related to issues with the baby's capacity to wake up from sleep, to recognize low oxygen levels, or to identify an increase of carbon dioxide in the blood. Toddlers that sleep with their faces downward may breathe in their own carbon dioxide. Despite a newborn's risk of SIDS is reduced if they sleep in the same room as their parents, that risk rises if they share a bed with their parents, or siblings.

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you and the buyer both realize that you overcharged for the yard work she did but did not rectify it; now she seeks to enforce a different payment amount in small claims court. this attempt will probably not be enforceable if you plead the defense of uncon

Answers

False, this attempt will probably not be enforceable if you plead the defense of unconscionability.

What is the defense of unconscionability?

A defense against the enforcement of a contract or portion of a contract. However, a court may find it unconscionable and refuse to apply it, If a contract is illegal or rough to one party in a way that suggests abuses during its conformation. Unconscionable is an adjective that means without a heart; unconscionable; so illegal or unjust that it shocks the heart.

The adjective is constantly used in the environment of contract law for contracts that have grossly rough and illegal terms. When a court finds a contract unconscionable, it's unenforceable. Two general types of potentially unconscionable vittles are explicatory clauses and disclaimers of limitations of bond liability. Explicatory clauses are clauses that release a party from liability for injuries that he causes.

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five (5) specific forces that are acting as stimulants for change, state and explain them with relevant examples.

Answers

Explanation:

It can be mentioned as the five specific forces that are acting as stimulators for change the forces:

Competition Nature of the workforce economy Policy Technology

These are stimulating forces for change because they are factors that drive the change process so that organizational activities are able to remain and adapt in the market according to what happens in your micro and macro business environment.

Market competition is a factor that makes companies always willing to develop new methods, products and services so that they can achieve better results in the market search than competing companies. Integrated with the competition is the search for technology, which innovates the way in which techniques are developed and exists to facilitate and change work, as well as methods of using work forces.

Political and economic scenarios are also forces that drive change and the decisions that companies make in the market to seek better results and achieve their goals.

What is the first element that should be considered in creating an
advertisement?

Answers

Answer:

UNDERSTANDING THE PRODUCT DNA::

the first element is recognise the idea behind the product or service.For example if you are selling "bespoke clothing line" then the idea behind is 'luxury'. therefore, the advertising campaign must revovle around luxury.

Answer:

the message

Explanation:

what are 2 different types of budgets and discuss how they complement each other?

Answers

There are two main types of budgets: operational budgets and financial budgets.

Operational budgets are used to plan and monitor the day-to-day operations of a business, and typically cover a period of one year. These budgets include items such as revenue projections, production costs, and operating expenses. Operational budgets are crucial for ensuring that a business stays on track and meets its operational goals. Financial budgets, on the other hand, are focused on the long-term financial health of a business. They include items such as capital expenditures, financing costs, and cash flow projections. Financial budgets are used to help businesses plan for the future and make strategic decisions about investments and growth. These two types of budgets complement each other by providing a comprehensive view of a business's operations and financial health. Operational budgets help to ensure that day-to-day activities are aligned with the overall goals of the business, while financial budgets provide a roadmap for achieving long-term success. By using both types of budgets, businesses can make informed decisions about resource allocation, identify potential risks, and maintain a strong financial position over the long term.

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can someone please do this i already did it but i feel like it’s wrong

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The comparison of the following items according to their impact on the value of US dollars is as follows:

Weak dollarWeak dollarWeak dollarStrong dollarStrong dollarStrong dollarStrong dollarStrong dollarStrong dollar.

What strengthens a country's currency?

Principally, the factors that strengthen a country's currency include:

Interest ratesBalance of tradeForex demand and supplyForeign direct investmentsInflation and growth in the domestic economy.

When the exports are more than the imports, the country's currency is strengthened.

Foreign direct investments (FDIs) also strengthen a country's currency.

An import-dependent economy experiences a weak currency while an export-prone economy's currency is relatively stronger than the counterparts.

Thus, internal trade and service activities does not weaken a country's currency, for example, trips and graduation parties, within the United States.

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The before-tax income for Lonnie Holdiman Co. for 2020 was $101,000 and $77,400 for 2021. However, the accountant noted that the following errors had been made: 1. Sales for 2020 included amounts of $38,200 which had been received in cash during 2020, but for which the related products were delivered in 2021. Title did not pass to the purchaser until 2021. 2. The inventory on December 31, 2020, was understated by $8,640. 3. The bookkeeper in recording interest expense for both 2020 and 2021 on bonds payable made the following entry on an annual basis. Interest Expense 15,000 Cash 15,000 The bonds have a face value of $250,000 and pay a stated interest rate of 6%. They were issued at a discount of $15,000 on January 1, 2017, to yield an effective-interest rate of 7%. (Assume that the effective-yield method should be used.) 4. Ordinary repairs to equipment had been erroneously charged to the Equipment account during 2017 and 2018. Repairs in the amount of $8,500 in 2017 and $9,400 in 2018 were so charged. The company applies a rate of 10% to the balance in the Equipment account at the end of the year in its determination of depreciation charges.

Required:
Prepare a schedule showing the determination of corrected income before taxes for 2017 and 2018.

Answers

Answer:

Lonnie Holdiman Co.

A Schedule showing the determination of the corrected income before taxes for 2020 and 2021:

2020 2021

Before-tax income $101,000 $77,400

1. Excess Sales revenue (38,200) 38,200

2. December 31, 2020 Inventory understated 8,640 (8,640)

3. Amortized bonds discount not expensed (1,776) (1,901)

4. Equipment repairs not expensed (8,500) (9,400)

5. Overstated depreciation from capitalized

Equipment repairs 850 940

Corrected income before taxes $62,014 $96,599

Explanation:

a) Data and Calculations:

Before-tax income for 2020 = $101,000

Before-tax income for 2021 = $77,400

1. 2020 Sales Revenue $38,200; 2021 Sales Revenue $38,200

2. 2020 Understated inventory $8,640; 2021 Understated inventory $8,640

3. 2020 Unstated bonds interest expense $1,776

2021 Unstated bonds interest expense $1,901

4. 2020 Unstated equipment repairs $8,500 Overstated Equipment account $8,500

2021 Unstated equipment repairs $9,400 Overstated Equipment account $9,400

2020 Overstated Depreciation expense $850

2021 Overstated Depreciation expense $940.

Bonds Calculations:

Bonds outstanding value:

Bond's face value = $250,000

Discount = 15,000

Proceeds from bonds = $235,000