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Author Question: If General Motors expects profits of $50 million in a booming economy, what is the expected profit ... (Read 78 times)

krzymel

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on: Apr 25, 2021

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
Corporate Finance Online ¦ Eakins, McNally ¦ 2nd Edition
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Marked as best answer by krzymel on Apr 25, 2021

juwms

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Reply #1 on: Apr 25, 2021
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
Gracias!

ttt030911

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Reply 3 on: Yesterday
Wow, this really help

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