Purchase Solution

Expected return

Not what you're looking for?

Ask Custom Question

High Flier's common stock is expected to return 28 percent in a boom economy,14 percent in a normal economy, and -32 percent in a recession. The probability of a boom is 20 percent, of a normal economy is 70 percent, and of a recession is 10 percent. What is the expected return on High Flier's common stock?
a. 10.9 percent
b. 11.4 percent
c. 12.2 percent
d. 13.6 percent

Purchase this Solution
Solution Summary

The solution explains how to calculate the expected return.

Purchase this Solution
Free BrainMass Quizzes
Managing the Older Worker

This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce

Marketing Management Philosophies Quiz

A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.

Operations Management

This quiz tests a student's knowledge about Operations Management

Organizational Behavior (OB)

The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.

Accounting: Statement of Cash flows

This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.

View More Free Quizzes
Related BrainMass Solutions

  • What does the Beta of a Stock Mean?

    rate)) Expected return on a stock = .05 +(1*(.15-.05)) Expected return on a stock = .05 +.10 Expected return on a stock = .15 The expected return on a stock with a beta=2 will be: Expected return on a stock = Risk-free-rate + (Beta*(Expected

  • Expected Return

    expected annual return on stock 2 = 10% expected annual return on stock 3 = has to be calculated expected annual return on portfolio = 12% Expected return on portfolio = proportion

  • Finance : Expected Return and Risk

    (Expected portfolio return) Musumeci Capital Management has invested its portfolio as shown here. What is Musumeci's expected portfolio return?

  • expected return on a stock with a beta=2.0 twice

    197312 Is the expected return on a stock with a beta=2.0 twice the expected return on a stock with a beta? Is the expected return on a stock with a beta=2.0 twice the expected return on a stock with a beta?

  • Expected Return

    Risk free rate = 6% Beta = 1.25 Expected return on the market = 13% Expected Return using the CAPM equation is Expected return = Risk free rate + (Expected Return on Market-Risk free rate) X beta Expected Return = Rf + (Rm-Rf) X beta Expected

  • Answer to "expected return" question

    The new expected return is Expected Return = 4% + (14.7%-4.9%) X 1.3 Expected Return = 16.74% The solution explains how to calculate the expected return using the CAPM equation

  • expected excess return

    B, it offers an expected excess return of 1.8% 4. B, it offers an expected return of 2,4% 5.

  • Expected rate of return on the portfolio

    expected total return can be calculated as Expected rate of return = Sum (Probability X Return) Expected rate of return = 0.1 X 15% + 0.85 X 12.67% + 0.05 X -2.33% Expected rate of return = 12.15% The solution explains how to calculate the expected

  • Expected Return and Beta Risk

    113625 Expected return / beta 17. The expected return on the market is 13% and the risk-free rate is 5%. Your portfolio has a beta of 1.3. What is the expected return on your portfolio? 18. What is the beta of the following portfolio?

  • Calculating the expected returns

    Calculate the expected return from Dell. b. Find the highest expected return that is offered by one of these stocks. c. Find the lowest expected return that is offered by one of these stocks. d.

View More Related Solutions