If the Economy Booms,RTF,Inc

question 120

Multiple Choice

If the economy booms,RTF,Inc. stock is expected to return 15%. If the economy goes into a recessionary period,then RTF is expected to only return 3%. The probability of a boom is 60% while the probability of a recession is 40%. What is the variance of the returns on RTF,Inc. stock?

• A) .00125
• B) .00345
• C) .00629
• D) .00731
• E) .12583

Identify cultural perspectives on child-rearing practices.

Learn communication techniques for effective cross-cultural interaction.

Understand the relationship between cultural beliefs and practices in shaping individual and group behaviors.

Understand how to enhance presentations with various multimedia elements, including pictures, SmartArt, audio clips, and 3-D models.

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Definitions:

Disposable Income

Indicates the sum of funds households can allocate towards expenditure and savings once income taxes have been deducted.

Disposable Income

Households' available economic resources for spending and saving post-tax.

Disposable Income

The amount of money an individual or household has to spend or save after taxes have been deducted.

Savings

Money that is set aside from disposable income, often placed in interest-bearing accounts for future use or investment.