Business, 19.04.2021 15:40 Yailynn598

Mr. Manning is looking to invest in a one-year stock option and has four possible options. The four options have various rates of return based on whether or not the market rises or fall within the coming year. After consulting with his financial planner, he has the following estimates based on the various market outcomes: Stock Market Rising Market Stable Market Falling
SUA $68,082 $47,373 $36,362
YSP $64,850 $49,320 $44,865
HTC $57,198 $52,949 $50,605
YHA $59,766 $59,766 $59,766

Mr. Manning’s planner has estimated that the probability the market rises is 60%, stays stable is 30%, and falls is 10%. To assist Mr. Manning in his decision, build a decision tree to model the decision and answer the following question. You do not need to upload your decision tree for this question.

Required:
a. Which stock is the best expected value decision and what is the expected value of that decision?
b. Which stock is the worst expected value decision?

Answers: 1

Show answers

Another question on Business

Business, 22.06.2019 03:30

Sarah salesrep is brand new to her job selling "lifetime" printers that never need replacement ink cartridges. the problem is that these printers cost ten times more than a regular printer, so it is difficult to get prospective buyers to understand the cost savings of buying it. to break through the barrier and begin making sales, sarah should use a analysis that highlights her printer's lower cost.

Answers: 3

Answer

Business, 22.06.2019 16:10

Omnidata uses the annualized income method to determine its quarterly federal income tax payments. it had $100,000, $50,000, and $90,000 of taxable income for the first, second, and third quarters, respectively ($240,000 in total through the first three quarters). what is omnidata's annual estimated taxable income for purposes of calculating the third quarter estimated payment?

Answers: 1

Answer

Business, 22.06.2019 20:00

In myanmar, six laborers, each making the equivalent of $ 2.50 per day, can produce 40 units per day. in china, ten laborers, each making the equivalent of $ 2.25 per day, can produce 48 units. in billings comma montana, two laborers, each making $ 60.00 per day, can make 102 units. based on labor cost per unit only, the most economical location to produce the item is china , with a labor cost per unit of $ . 05. (enter your response rounded to two decimal places.)

Answers: 3

Answer

Business, 22.06.2019 23:30

Atelephone call center uses three customer service representatives (csrs) during the 8: 30 a.m. to 9: 00 a.m. time period. the standard service rate is 3.0 minutes per telephone call per csr. assuming a target labor utilization rate of 80 percent, how many calls can these three csrs handle during this half-hour period?

Answers: 1

Answer

You know the right answer?

Mr. Manning is looking to invest in a one-year stock option and has four possible options. The four...

Questions