Consider the following information: Rate of Return if State Occurs State of Economy Probability of State of Economy Stock A Stock B Recession 121 .06 -21 Normal 58 09 108 Boom 21 14 125 a. Calculate the expected return for Stocks A and B. (Do not round Intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) b. Calculate the standard deviation for Stocks A and B. (Do not round Intermedlate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) a. Stock A expected return a. Stock B expected return b. Stock A standard deviation b. Stock B standard deviation % 96 2/6 96

Q: Solution was marked wrong.

A: Future value refers to the concept of time, the value of money used for determining the value of…

Q: Why would it

A: Internal Control:   Internal control refers to the policies, and plans of the business organization…

Q: Give two examples of errors of principle?

A: Errors of principle refers to errors that are carried out at time of noting down transactions…

Q: Why does the FASB recommend the direct method over the indirect method?

A: Definition:   Financial accounting standards board (FASB): This is the organization that creates,…

Q: Solution is totally wrong

A:

Q: The Sarbanes-Oxley Act requires the following?

A: Sarbanes-Oxley Act is formulated during 2002 under US federal law. The prime purpose of the act is…

Q: Question 8

A: When net credit sales is divided with average accounts receivable it results in receivable turnover…

Q: nonrecurring

A: Extraordinary things vs. Nonrecurring Items: an summaryExtraordinary things area unit gains or…

Q: Req C is incorrect.

A: Equivalent unit of production is multiplied by cost per equivalent unit to compute the assignment of…

Q: Explanation 1031 like-kind exchange

A:

Q: True or false: IFRS is based on the same characteristics of information as AspE

A: IFRS:It stands for International Financial Reporting Standards, a set of accounting standards…

Q: Explain rebalance

A: Rebalancing is the strategy for realigning portfolio weightings. Rebalancing incorporates buying or…

Q: Which are the disadvantage of a C corp?

A: C corporation is the corporation that is taxed separately from its owners or shareholders.  In other…

Q: nother wrong answer

A: The Annual Percentage Rate: The annual percentage rate is the nominal rate quoted by financial…

Q: Project b npv is incorrect. MIRR is wrong for A and B.

A:

Q: What Constitutes a Discontinued Operation?

A: Income statement: The financial statement which reports revenues and expenses from business…

Q: Still do not. Understand, why type of annuitie is used?

A: The question is a follow-up question, and, the learner has reposted it to clear the confusion so…

Q: All of these say incorrect.

A: An expense that benefits more than one product and for which the contribution to each product cannot…

Q: utio

A: In general, a "eligible rollover distribution" is any payment paid in a lump sum or over a period of…

Q: part b is incorrect. Can you rework it?

A: Here,Quarter Dividend is $1.50Growth Rate is 6.25%Required Return is 9%Quarterly Required Return is…

Q: why would it not be option A

A: The T1 personal tax return is the tax return form required to be filed by all taxpayers in Canada.…

Q: Give two examples of errors of commission?

A: Accounting error: Accounting errors can be defined as omission of the fundamental accounting…

Q: What is the primary difference between the APT and the CAPM?

A: APT is an abbreviation used for arbitrage Pricing Theory whereas CAPM is an acronyms used for…