Winnebagel Corp. currently sells 33000 motor homes per year at $49500 each and 13200 luxury motor coaches per year at
$93500 each. The company wants to introduce a new portable camper to fill out its product line; it hopes to sell 20900 of
these campers per year at $13200 each. An independent consultant has determined that if Winnebagel introduces the new campers
it should boost the sales of its existing motor homes by 4950 units per year and reduce the sales of its motor coaches by 990
units per year.
What is the amount to use as the annual sales figure when evaluating this project?
If the economy booms RTF Inc. stock is expected to return 9 percent. If the economy goes into a recessionary period then RTF is expected to
only return 3 percent. The probability of a boom is 69 percent while the probability of a recession is 31 percent. What is the variance of the
returns on RTF Inc. stock?