What is the standard deviation of a stock that has a 10% chance of earning 18%, a 10% chance of making 11%, a 40% chance of making 5%, and a 40% chance of making 22%?
A. 7.95%.
B. 13.70%.
C. 7.78%.
D. 13.05%.

Answers

Answer 1

Answer:

A. 7.95%.

Explanation:

Calculate the expected rate of return for the investment as follows:

[tex]\begin{aligned}

\text { Expected rate of return } &=(\text { Probability } \times \text { Rate of return })+(\text { Probability } \times \text { Rate of return })+\\

&(\text { Probability } \times \text { Rate of retum }) \\

=&(0.40 \times 15 \%)+(0.50 \times 10 \%)+(0.10 \times-3 \%) \\

=& 0.06+0.05-0.003 \\

=& 0.107[/tex]

Calculate the standard deviation of the investment as follows:

[tex]\begin{aligned}

\text { Standard deviation }=&\left\{\begin{array}{l}

\text { Probability } \left.\times(\text { Return }-\text { Expected return })^{2}\right)+ \\

\text { (Probability } \left.\times(\text { Return }-\text { Expected return })^{2}\right)+ \\

\text { (Probability } \left.\times(\text { Return }-\text { Expected return })^{2}\right)

\end{array}\right.[/tex]

=[tex]\sqrt{\left(0.40 \times(0.15-0.107)^{2}\right)+\left(0.50 \times(0.10-0.107)^{2}\right)+} \\

=\sqrt{0.0007396+0.0000245+0.0018769} \\

=\sqrt{0.002641} \\

=0.05139066063011[/tex]


Related Questions

Biogenetics, Inc. plans to retain and reinvest all of their earnings for the next 30 years. Beginning in year 31, the firm will begin to pay a $30 per share dividend. The dividend will not subsequently change. Given a required return of 18%, what should the stock sell for today?

Answers

Answer:

the stock sell for today is $1.16

Explanation:

The calculation of the stock sell for today is as follows;

Value after year 31 is

= (D31 ÷ Required return)

= $30 ÷ 0.18

= $166.666667

Now the current value is  

= Future dividend and value × Present value of discounting factor(rate%,time period)

= $30 ÷ 1.18^31 + $166.666667 ÷ 1.18^31

= $1.16

Hence, the stock sell for today is $1.16

We simply applied the above formula so that the correct value could come

And, the same is to be considered

The Bureau of Labor Statistics counts as employed people who work part-time, but would prefer to work full-time. Suppose the people who had part-time jobs, but wanted full-time jobs, were counted as unemployed. Explain how the unemployment rate and the labor force participation rate would change.

Answers

Answer:

The labor participation rate would not change because it counts the labor force as a percentage of the total adult population, and the labor force includes both the number of people employed and the number of people unemployed, so, even if those working part-time were counted as unemployed by the BLS, they would still be part of the Labor Force.

The labor participation rate formula is:

Labor Participation Rate = (Labor Force / Total Adult Population) x 100

The unemployment rate would indeed change, because it counts the number of unemployed as a percentage of the labor force. If those working part-time were counted as unemployed by the BLS, the number of people unemployed would obviously spike.

The formula is:

Unemployment Rate = (Number of Unemployed / Labor Force) x 100

If Congress votes to increase spending and taxes by the same amount, what is the effect on employment and interest rates

Answers

Answer:

a. Increase / Increase

Explanation:

Since in the question it is mentioned that there is an increase in taxes and government spending so it represents the positive stimuls as it occurs because the government incurrent all the revenue for the public welfare due to which there is a rise in the government expenditure that boost the aggregate demand also the GDP value would be rise because of the multiplier effect

Therefore the employment level and the rate of interest would also increased

Answer:

The correct answer was increase / no change

Explanation:

Just took the test

Assume a company has two divisions, A and B. The company’s overall sales, overall contribution margin ratio, common fixed expenses, and net operating income are $500,000, 48%, $50,000, and $10,000, respectively. Division A has a contribution margin of $180,000. If Division B has traceable fixed expenses of $80,000, then what is Division A’s segment margin? Multiple Choice $80,000 $40,000 $20,000 $60,000

Answers

Answer:

$60,000

Explanation:

total sales A + B = $500,000

variable expenses = $260,000

combined contribution margin = $240,000

contribution margin A = $180,000

contribution margin B = $60,000

combined segment margins = $60,000 (= -$20,000 + $80,000)

segment margin B = -$20,000

segment margin A = $80,000

common fixed expenses = $50,000

net income = $10,000

The margin available after a segment has covered all of its costs is known as segment margin. The segment profit margin is $60,000 per segment. As a result, option (d) or (iv) is the proper response.

How do you compute segment margin?

[tex]\text{total sales A + B} = $500,000\\\text{Variable expenses} = $260,000\\\text{Combined contribution margin} = $240,000\\\text{Contribution margin A} = $180,000\\\text{contribution margin B} = $60,000\\\text{combined segment margins} = $60,000 (= -$20,000 + $80,000)\\\text{segment margin B} = -$20,000\\\text{segment margin A} = $80,000\\\text{common fixed expenses} = $50,000\\\text{net income}= $10,000[/tex]

For more information about margin segments, refer below

https://brainly.com/question/15893794

Lacy set her textbook under her chair in her business law class and then forgot to take it with her when she left the classroom. A janitor later discovered the textbook and gave it to the Dean of the Business College. In this situation:___________.a. the college is a constructive bailee, obligated to return the textbook to Lacy, and until it does, it is liable for harm to the property.b. the college is a bailee by agreement because holding items in a lost and found box is generally part of the college-student agreement when the student enrolls for classes.c. the college is responsible for the discovered textbook because in this situation, the college is subject to implied warranties unless the college has disclaimed such warranties in the student handbook.d. this is a bailment for the sole benefit of the bailee.

Answers

Answer:

a. the college is a constructive bailee, obligated to return the textbook to Lacy, and until it does, it is liable for harm to the property.

Explanation:

When a party comes into possession of a property not by contractual agreement, they are referred to as constructive bailee and are obligated to take care of the property till it is returned to the owner.

The bailee does not willingly take possession of the property, rather unforseen circumstances leads to them possessing it.

This is common when a person forgets his property in a place.

In the given scenario the college (Dean of Business College) became a constructive bailee when they recieved the misplaced textbook. So they are obligated to care for the textbook till it get back to Lacy or be held liable for any harm done

Two major concerns of Management Accounting are:
a. Controlling and Executing.
b. Controlling and Investigating.
C. Planning and Controlling.
d. Planning and Investigating.

Answers

C




Hope this helps




Hope

Suppose payments were made at the end of each month into an ordinary annuity earning interest at the rate of 4.5%/year compounded monthly. If the future value of the annuity after 11 years is $55,000, what was the size of each payment?

Answers

Answer:

The size of each payment was $322.78.

Explanation:

This can be calculated using the formula for calculating the Future Value (FV) of an Ordinary Annuity as follows:

FV = M * (((1 + r)^n - 1) / r) ................................. (1)

Where,

FV = Future value of the amount after 11 years = $55,000

M = Monthly payment = ?

r = Monthly interest rate = 4.5% / 12 = 0.045 / 12 = 0.00375

n = number of months = 11 years * 12 = 132

Substituting the values into equation (1) and solve for M, we have:

$55,000 = M * (((1 + 0.00375)^132 - 1) / 0.00375)

$55,000 = M * 170.394706737074

M = $55,000 / 170.394706737074

M = $322.779979808101

Rounding to 2 decimal places, we have:

M = $322.78

Therefore, the size of each payment was $322.78.

Does anyone know how to slap babies correctly?

Answers

Answer:

no don't do that.

Explanation:

Answer:

Yes. You get in the car, buckle up, ad drive to the police station and turn yourself in for child abuse :)

Explanation:

Bonita Company's inventory records show the following data:

Units Unit Cost
Inventory, January 1 10900 $8.00
Purchases: June 18 8700 8.10
November 8 5700 5.00

A physical inventory on December 31 shows 5700 units on hand. Under the FIFO method, the December 31 inventory is:_______

Answers

Answer:

$28,500

Explanation:

FIFO will give the same result whether you use perpetual or periodic system.

Ending Inventory = Units Left × Earliest Price

Therefore,

Ending Inventory = 5700 units × $5.00

                             = $28,500

Making decisions about how Threadless should allocate its resources to both current and future product innovations is a process known as:_______
a. long-term financing.
b. financial planning.
c. financial management.
d. short-term financing.
e. budgeting.

Answers

Answer:

c. financial management.

Explanation:

financial management can be regarded as carrying out activities such as organizing, controlling as well as planning of financial resources in order to achieve the goals of the organization. It involves the well utilization of funds in a particular Enterprise. It should be noted that Making decisions about how Threadless should allocate its resources to both current and future product innovations is a process known as financial management.

Making decisions about how Threadless should allocate its resources to both current and future product innovations is a process known as Financial management.

Financial management can be defined as the strategic planning, organising, directing, and controlling of financial resources in an organisation.

Financial management can be applied in making the following decisions in an organization:

Investment decision

Dividend decision

Financing decision

It also involves applying the principles of management to the financial assets or allocation of resources in an organization.

Therefore, Financial management is the decision used to allocate resources to both current and future product innovations in a company.

Read more:

https://brainly.com/question/989344

The aggregate planning approach that lends itself to examining many solutions is:_________
A. the transportation method of linear programming.
B. graphical techniques.
C. the linear decision rule.
D. Bowman's management coefficients model.

Answers

Answer:

B. graphical techniques.

Explanation:

The graphical methods would be applied in the case when the facts are assessed in a quantitive way. Also it is a main part for the investigation that contains exploratory information

Therefore in the given situation, for examining many solutions under the aggregate planning approach the graphical techniques would be considered

hence, the correct option is B

A manual press costs $16,000, and it will be scrapped after 10 years. Compute the depreciation and book value for the first two years using 100% bonus depreciation.

Answers

Answer and Explanation:

The computation of the depreciation and the book value for the first two years would be

Depreciation for Year 1

= 100% Bonus + regular depreciation

= $16,000 + $16,000 ÷ 10 years

= $17,600

And,

Book value year 1 is

= $16,000 - $1,600

= $14,400

Now

Depreciation for Year 2 is

= Regular depreciation

= $1,600

And,

Book value year 2 is

= $14,400 - $1,600

= $12,800

In 2020, Sunland Corporation incurred research and development costs as follows: Materials and equipment $116000 Personnel 136000 Indirect costs 176000 $428000 These costs relate to a product that will be marketed in 2021. It is estimated that these costs will be recouped by December 31, 2023. The equipment has no alternative future use. What is the amount of research and development costs that should be expensed in 2020

Answers

Answer:

$428,000

Explanation:

The amount of research and development costs that should be expensed in 2020  is as calculated below

The amount of research and development costs = Materials and equipment cost + Personnel cost + Indirect costs

The amount of research and development costs = $116,000 + $136,000 + $176,000

The amount of research and development costs = $428,000

A perpetual bond with a par value of $1,000 and a coupon rate of 7.75% has a current market price of $900. What is its yield to maturity

a. 9.32%
b. 8.33%
c. 7.92%
d. 9.45%
e. 8.61%

Answers

Answer: e. 8.61%

Explanation:

This is a perpetual bond so the price is calculable by;

Price = Coupon / Yield to Maturity

Coupon = 7.75% * 1,000

= $77.50

900 = 77.50/ YTM

900 * YTM = 77.50

YTM = 77.50/900

= 8.61%

In ________, salespeople are independent contractors who not only sell the product, but also recruit additional salespeople.

Answers

Answer:

Multi-level marketing.

Explanation:

A business organization that is run with multi-level marketing strategy typically has 3 sources of income:

- The amount of money that each person have to pay in order to gain the membership status.

- The amount of money that memberships owners have to pay to be a distributor of their product

- The amount of money that they get from the sales of their product.

Most multi-level marketing companies will provide their members with some sort of 'Reward' if they managed to convert other people into purchasing memberships to organization. So, the more their members convert other people, the more wealthy that members will be. This will create a hierarchy like within an organization where the members who bring the most memberships place at the top of the hierarchy.  

Andrews Corp. ended the year carrying $46,369,000 worth of inventory. Had they sold their entire inventory at their current prices, how much more revenue would it have brought to Andrews Corp.?
a. $264,018,840
b. $191,318,000
c. $67,711,000
d. $104,076,000

Answers

Answer: $46,369,000

Explanation:

At the end of the year, all the costs associated with inventory and operations have been dealt with in the income statement.

This means that if the entire inventory were sold at current prices which is $46,369,000, the addition to revenue will be what the goods were sold for which is the current price.

Options do not have this answer but that is it.

In a period when costs are declining and inventory quantities are stable, the lowest cost of goods sold would be reported by using the inventory method of

Answers

Answer:

LIFO

Explanation:

To record the lowest cost of goods sold, the ending inventory amount must be high. This would only be high in LIFO whish would not be affected by declining costs.

By using LIFO (Last in First Out) inventory valuation will be based on the value of the earliest goods purchased instead of latest goods purchased as in FIFO (First In First Out)

Explain the actions the FED should take if it wanted to move from a point on the short-run Phillips curve representing high unemployment and low inflation to a point representing lower unemployment and higher inflation.

Answers

Answer:

The short run Phillips curve states that there is an inverse relationship between unemployment and inflation in the short run.

Since unemployment is high and the inflation rate is low, in order for the FED to decrease unemployment and increase inflation it must decrease the interest rate. That way, the economy should kick off and start growing which should decrease unemployment and at the same time will increase inflation.

Which employee role is directly accountable to ensure that employees are implementing security policies consistently

Answers

Answer: Information Technology

Explanation:

The employee role is directly accountable to ensure that employees are implementing security policies consistently is the information technology staff.

Such individual implements and also maintains security policies, procedures, and standards. The Information Technology staff gives the necessary mechanisms that will be required to enhance the security program.

Explain at least four types of ethical misconduct in financial transactions. Explain how these work with appropriate illustrations followed by real-life examples as far as possible for each type

Answers

The correct answer to this open question is the following.

We can help you with the four cases of financial misconduct.

So the four types of ethical misconduct in financial transactions are

1.- Fraudulent Financial Reporting. This is when the top company management lies about financial statements. These companies cheat on the investors of the company for a particular agenda. It also can be the case when top management tries to keep the share price of the corporation.

2.- Stealing, today technically called Missaprpriation of Assets. In this case, employees use the company's assets for personal reasons. The employee even can steal money from the company's accounts.

3.- Bribering. A member of the company bribes a government official in order to have influence in some regulations.

4.- Disclosure. A member of the company discloses important information considered private or "Top Secret," trying to create a personal advantage or for a competitor.

A firm has a tax burden of 0.6, a leverage ratio of 1.2, an interest burden of 0.7, and a return-on-sales ratio of 14%. The firm generates $2.64 in sales per dollar of assets. What is the firm's ROE

Answers

Answer:

18.63%

Explanation:

Calculation for the firm's ROE

Using this formula for

ROE=(Tax burden)(Leverage ratio)(Interest burden)(Return-on-sales ratio)(Sales per dollar of assets)

Let plug in the formula

ROE = (.6)(1.2)(.7)(.14)(2.64)

ROE=18.63%

Therefore the firm's ROE is 18.63%

When a bond sells at a premium:___________
a) The contract rate is above the market rate.
b) The contract rate is equal to the market rate.
c) The contract rate is below the market rate.
d) It means that the bond is a zero coupon bond.

Answers

Answer:

a) The contract rate is above the market rate.

Explanation:

In the case when the bond is sold at the premium that means the contract rate or the coupon rate is higher than the market rate

While on the other hand, when the bond is sold at the discount that means the contract rate or the coupon rate is lower than the market rate

Therefore as per the given situation, the correct option is a.

hence, all the other options are wrong

Coronado Industries reported total manufacturing costs of $450000, manufacturing overhead totaling $68000, and direct materials totaling $86000. How much is direct labor cost

Answers

Answer:

$296,000

Explanation:

Calculation for How much is direct labor cost

Using this formula

Direct labor cost=Total manufacturing costs-Manufacturing overhead totaling-Direct materials totaling

Let plug in the formula

Direct labor cost=$450,000 - $68,000 - $86,000

Direct labor cost=$296,000

Therefore the direct labor cost will be $296,000

Monopoly firms face a. downward-sloping demand curves, so they can sell only the specific price-quantity combinations that lie on the demand curve. b. horizontal demand curves, so they can sell only a limited quantity of output at each price. c. horizontal demand curves, so they can sell as much output as they desire at the market price. d. downward-sloping demand curves, so they can sell as much output as they desire at the market price.

Answers

Answer:

Option d (downward..................................market price) would be the right approach.

Explanation:

The monopoly is attributed to the idea that an organization and therefore its distribution channels control one market or business. Monopolies may be called a social consequence of unlimited access competition and therefore are frequently further used to characterize an organization that had already absolute or relatively close market power.

Other options aren't connected to something like the situation in question. So the above alternative seems to be the right one.

In what positive and negative ways has the Internet changed the conduct and coordination of global business?

Answers

Answer: Positive ways; Barriers in connecting is slightly no more, Negative ways; Increase in fraud and cyber theft

Explanation:

The internet has changed the conduct and cordination of global business in many ways both positively and negatively. Considering the positive ways

Positive Ways: Barriers in connecting is slightly no more: connecting to one another has been made easy to do business recently, people in continents can carry out a transaction and a trade under minutes of interaction and get the goods and services exchanged among each other immediately.

Negative ways; Increase in fraud and cyber theft; despite the swift nature of doing business now, it has also Increased fraud as some people disguise themselves to be traders and businessmen just to collect people's money.

Define rivalry and excludability and use these terms to discuss the four categories of goods. Rivalry is the situation that occurs when

Answers

Answer:Rivalry is the situation where there is competition between markets on determining who gets the customer base or who wins the customers heart.

While excludability could be defined as a situation where goods are limited or exclusive to only customers who pay

Explanation:

Rivalry is the situation where there is competition between markets on determining who gets the customer base or who wins the customers heart.

Excludability could be defined as a situation where goods are limited or exclusive to only customers who pay

-A private good is both a rivalry and excludability good because it includes things such as: food, clothing, or a haircut.

-A public good is neither rival nor excludable, because their often supplied by the government such as national defense.

-A quasi-public good is excludable, including things such as cable, internet, or iPhones.

-A common resource is rival, including things such as forest land.

A company's managers have decided to issue bonds to raise financial capital. What is the first step in this process?
A. Selling the bonds to investors
B. Contacting a financial advisory firm
C. Filing documents with the SEC
D. Determining the firm's creditworthiness
E. Preparing documentation

Answers

Answer: Contacting a financial advisory firm

Explanation:

Since the company's managers have decided to issue bonds to raise financial capital, the first step in this process is for them to contact a financial advisory firm.

The financial advisory firm would help in giving advice and also consultation regarding the finance of the company and provide them with strategies that can help the company reduce costs and achieve their financial goals.

Which kinds of employment discrimination are prohibited under one body of law, but are permitted under the other body of law?

Answers

Answer is given below:

Explanation:

Federal law prevents corrosion in many areas, including recruitment, recruitment, jobs, evaluation, promotion, training and compensation. State law often provides protection for additional categories or employers. Federal law or California law provides additional protection from employment discrimination. Federal law makes it illegal to discriminate on the basis of race and color and nationality and origin and religion or gender etc.

Target Corporation reported the following information in a recent Form 10-K. Consolidated Statement of Operations ($ millions) FY 2016 Cost of sales $67,596 Consolidated Statement of Financial Position ($ millions) FY 2016 FY 2015 Inventory $10,321 $8,282
What is the (a) inventory turnover ratio, and (b) average days in inventory, for the fiscal year ended January 30, 2016?

Answers

Answer: See explanation

Explanation:

a. inventory turnover ratio

This will be calculated as:

= Sales cost / Average inventory

= $67,596 / $9301.50

= 7.2672

= 7.27

(b) average days in inventory.

This will be calculated as:

= 365 days / Inventory turnover ratio

= 365 / 7.27

= 50.20

= 50 days

Note:

Average inventory = ($10,321 + $8,282) / 2 = $9301.50

In September 2008, the stock market fell sharply and continued to perform poorly due to the financial crisis. How did this change impact GDP in the economy?

Answers

Answer:

Many people's wealth is held in stocks and as the price of stocks collapsed, they lost wealth.

Imagine that this happened to you. One day you are rich and that affects your spending habits. In a matter of few days or weeks, you lose a large portion of your wealth. So now, you are less rich or even poor. So your spending habits will be altered, i.e. you will spend less.

If you consider the economy as a whole, aggregate demand will fall, resulting in a decrease of aggregate supply, and an overall decrease of the GDP.

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