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Author Question: If General Motors expects profits of $50 million in a booming economy, what is the expected profit ... (Read 34 times)

krzymel

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Question 1

Given the following probability distributions, what are the expected returns for the Market and for Security J? State 1 P1 = 0.2 Km = -10% Kj = 40% : State 2 P1 = 0.5 Km = 10% Kj = -20% : State 3 P1 = 0.3 Km = 30% Kj = 30%
◦ 10.0%; 13.0%
◦ 9.5%; 13.0%
◦ 10.0%; 11.3%
◦ 12.0%; 7.0%
◦ 10.0%; 9.5%

Question 2

If General Motors expects profits of $50 million in a booming economy, what is the expected profit during a recession if this is the only other possibility and the overall expected profit is $35 million? The probability of a recession is 70%.
◦ $35.00 million
◦ $25.00 million
◦ $23.45 million
◦ $39.50 million
◦ $28.57 million


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Marked as best answer by krzymel on Apr 25, 2021

juwms

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Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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krzymel

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Reply 2 on: Apr 25, 2021
Wow, this really help


6ana001

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Reply 3 on: Yesterday
Great answer, keep it coming :)

 

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