What are the expected returns for stocks X and Y ?
Step 11 of 3
The below equation is used to determine what the expected return is. We need to determine what the expected return is for each market and then add all of them up to get the overall expected return from each stock.
Consider the following events: Scientists reveal that eating oranges decreases the risk of diabetes, and at the same time, farmers use a new fertilizer that makes orange trees produce more oranges. Illustrate and explain what effect these changes have on the equilibrium price and quantity of oranges
Let A and B be events, each with positive probability. a. State in words what it means for event B to be positively correlated with event A; negatively correlated with event A; independent of event A. b. Show that event B is positively correlated with event A if and only if event A is positively correlated with event B. c. Show that event B is negatively correlated with event A if and only if event A is negatively correlated with event B. d. Show that event B is independent of event A if and only if event A is independent of event B.
All of the following topics fall within the study of microeconomics EXCEPT a. the impact of cigarette taxes on the smoking behavior of teenagers. b. the role of Microsoft’s market power in the pricing of software. c. the effectiveness of antipoverty programs in reducing homelessness. d. the influence of the government budget deficit on economic growth.
Classify each of the following statements as positive or normative. Explain. a. Society faces a short-run trade-off between inflation and unemployment. b. A reduction in the rate of money growth will reduce the rate of inflation. c. The Federal Reserve should reduce the rate of money growth. d. Society ought to require welfare recipients to look for jobs. e. Lower tax rates encourage more work and more saving.