Which is the best measure of risk for a single asset held in isolation (Stand Alone Investment), and which is the best measure for an asset held in a diversified portfolio

Answers

Answer 1

Answer:

Single asset = Coefficient of VariationPortfolio = Beta

Explanation:

When dealing with standalone risk, coefficient of variation is best because it shows the amount by which the asset's returns might deviate from the average returns of the market.

As for portfolio assets that are well diversified, the best measure would be beta because diversified portfolios deal with systematic risk and beta shows the movement of the portfolio in relation to the market and so will show that systematic risk.


Related Questions

A farmer is considering the installation of a fuel storage system that will save $0.065 per gallon because the fuel can be purchased in bulk. The farmer uses about 20,000 gallons per year. The system will cost $10,000 to install. The annual operating and maintenance cost will be nothing in the first year but will increase by $25 each year thereafter. After ten years that the system will be used it will have a salvage value of $3,000. The Farmer
The farmer's cost of funds is 12%. What is the equivalent uniform annual benefit for the fuel storage system?Based on this analysis, should the farmer purchase the fuel storage?

Answers

Answer:

yes and because yes

Explanation:

The price elasticity of demand measures: Group of answer choices how responsive consumers are in the quantity they want when consumer incomes change how responsive producers are in the quantity they produce when the price changes how responsive consumers are in the quantity they want when the price changes how responsive producers are in the quantity they produce when consumer incomes change

Answers

Answer:

how responsive consumers are in the quantity they want when the price changes

Explanation:

The price elasticity of demand is

= Percentage change in quantity demanded ÷ percentage change in demand

So based on the above formula it shows that the consumers are responsive with regard to the quantity they need at the time when the price is changed

Therefore the above represent the answer

Answer:

Price

Inelastic

Elastic

Explanation:

got it right on edg

Furniture, Inc., estimates the following number of mattress sales for the first four months of 2019: Month Sales January 29,000 February 40,800 March 34,600 April 36,200 Finished goods inventory at the end of December is 7,000 units. Target ending finished goods inventory is 20% of the next month's sales. How many mattresses need to be produced in January 2019?
Select one:
a. 27,800 mattresses
b. 41,800 mattresses
c. 30,160 mattresses
d. 44,160 mattresses

Answers

Answer:

c. 30,160 mattresses

Explanation:

At the beginning of January, we had 7,000 units as opening stock inventory( which was the ending inventory in December), which means out of the planned sales in January 7,000 units are already available

The balance of January sales to be produced in January is the excess of planned sales of 29,000 units over the beginning inventory of 9,000 units

January sales items to be produced in January=29000-7000

January sales items to be produced in January=22,000

Also, we need to produce 20% of February sales in January which would serve as the closing inventory

total production in January=22,000+(40,800*20%)

total production in January=. 30,160 mattresses

Mutual fund A earned 10 percent while B earned 8 percent. The standard deviations of the returns were 10 percent and 7 percent, respectively. The risk free rate is 1%. According to the Sharpe ratio, which fund performed better

Answers

Answer:

Explanation:

The Sharpe ratio is given by:

(Return of portfolio - risk free rate) / standard deviation.

Test Tech has preferred stock outstanding that pays an $10.85 annual dividend. It price is $125. What is the required rate of return on the preferred stock

Answers

Answer:

8.7%

Explanation:

Calculation to determine the required rate of return on the preferred stock

Using this formula

Required rate of return=Annual dividend/Price

Let plug in the formula

Required rate of return=$10.85/$125

Required rate of return=0.087*100

Required rate of return=8.7%

Therefore the required rate of return on the preferred stock is 8.7%

g The gross domestic product (GDP) is looking at the total production of goods and services that are produced within the United States economy. Examine what the GDP has done in the past 5 years in the United States. What does this indicator tell us about how the economy is doing

Answers

Answer and Explanation:

The gross domestic product(gdp) is the total market value of all goods and services produced in a country in a year.

The GDP growth rate of US in the last five years is as given below:

2016: 1.64%

2017: 2.37%

2018: 2.93%

2019: 2.16%

2020: -3.51%

2021 first quarter: 6.39%

From the above, we can see the growth rate of US GDP has grown steadily from 2016 until the year 2019 when there is a decline of 0.77% from the previous year. In 2020, the US GDP suffers a farther decline as a result of the coronavirus pandemic and has a negative growth rate of -3.5%. However in the first quarter of this year, the growth rate improves considerably, given new innovations and work from home(WFH) work arounds to tackle the challenges of the pandemic to the traditional workplace.

A certain machine will have a cost of $25,000 (then $) six years from now. Find the PW of the machine if the real interest rate is 10% per year and the inflation rate is 5% per year using (a) constant-value dollars, and (b) then-current dollars.

Answers

Answer:

The Present Worth of the machine if the real interest rate is 10% per year and the inflation rate is 5% per year, using:

(a) constant-value dollars

= $10,518.60

(b) then-current dollars

= $10,818.65

Explanation:

a) Data and Calculations:

Cost a certain machine six years from now = $25,000

Time period = 6 years

Real interest rate = 10%

Inflation rate = 5%

Nominal interest rate = 5% (10% - 5%)

Discount factor at 10% for 6 years = 0.564

Discount factor at 5% for 6 years = 0.746

PW using:

a) Constant-value dollars = $18,650 ($25,000 * 0.746)

PW = $10,518.60 ($18,650 * 0.564)

b) Then-current dollars:

The nominal rate = 0.1 + 0.05 + (0.1 * 0.05) = 0.155

$10,818.65 ($25,000 * 0.432746)

On July 1, Hartford Construction purchases a bulldozer for $228,000. The equipment has a 9-year life with a residual value of $16,000. Hartford uses the units-of-output method depreciation, and the bulldozer is expected to yield 26,500 operating hours.
Required:
(a) Calculate the depreciation expense per hour of operation.
(b) The bulldozer is operated 1,250 hours in the first year, 2,755 hours in the second year, and 1,225 hours in the third year of operations. Journalize the depreciation expense for each year.

Answers

Answer:

a. Depreciation expense per hour:

= (Cost - salvage value) / Expected operating hours

= (228,000 - 16,000) / 26,500

= $8 per hour

b. First year depreciation:                                      Second year depreciation:

= 1,250 * 8                                                                  = 2,755 * 8

= $10,000                                                                   = $22,040

Third year depreciation:

= 1,225 * 8

= $9,800

Journal entries

Date                    Account Title                                    Debit                 Credit

June 30, Year 1 Depreciation                                     $10,000

                          Accumulated Depreciation                                       $10,000

Date                       Account Title                                   Debit                 Credit

June 30, Year 2     Depreciation                                 $22,040

                              Accumulated Depreciation                                  $22,040

Date                       Account Title                                   Debit                 Credit

June 30, Year 3     Depreciation                                 $9,800

                              Accumulated Depreciation                                  $9,800

discuss the characteristics and importance of factors of production​

Answers

Explanation:

The four factors of production are inputs used in various combinations for the production of goods and services to make an economic profit. The factors of production are land, labor, capital, and entrepreneurship. 

The GASB requires governments to present budgetary comparisons in their external annual financial statements (either as an additional financial statement or as schedules in required supplementary information). What does the GASB require these statements/schedules to include

Answers

Answer:

The GASB requires these statements/schedules to include:

1. budgetary comparisons for the activities that are reported in the general fund and each major special revenue fund.

2. schedules showing the original budget, the final appropriations budget, and actual inflows, outflows, and balances on a budgetary basis.

Explanation:

The purpose of GASB section 34 is to improve the financial transparency of state and local governments' fiscal reports.  It also increases governmental accountability, making it possible for citizens to participate in deciding operating budgets of their states and local governments.

Find the present value of $19,000 in 11 months at 5.1% interest

Answers

Answer:

$19,886.396

Explanation:

Given :

Interest rate = 5.1% = 5.1

Principal = $19000

Period = 11 months = (11/12)year

The present value of 19000 in 11 months at 5.1% interest Can be obtained using the relation:

PV = P(1 + r)^n

PV = 19000(1 + 0.051)^(11/12)

PV = 19000(1.051)^(11/12)

PV = 19000 * 1.0466524

PV = 19886.396

Hence, the present value is $19,886.396

In the liquidation of a partnership, any partner who has a capital deficiency Group of answer choices has a personal debt to the partnership for the amount of the deficiency. is automatically terminated as a partner. will receive a cash distribution only on the basis of his or her income-sharing ratio. is not obligated to make up the capital deficiency.

Answers

Answer: A. has a personal debt to the partnership for the amount of the deficiency

Explanation:

Partnership is a form of business whereby two or more people come together and manage an organization together.

Capital deficiency refers to when there's a debit balance in the capital account of a partner after the allocation of gain or loss.

In the liquidation of a partnership, any partner who has a capital deficiency has a personal debt to the partnership for the amount of the deficiency.

All of the following assets require a title as proof of ownership, except: Group of answer choices Life insurance. Boat. Home. Vehicle.

Answers

Answer:

Life insurance.

Explanation:

A life insurance policy can be defined as a contract between a policyholder and an insurer, in which the insurer agrees to pay an amount of money to a specific beneficiary either upon the death of the insured person (decedent) or after a set period of time.

All of the following assets such as home, boat, vehicle require a title as proof of ownership, except a life insurance because no one person can present a proof to attest to the ownership of their life.

Simply stated, a life of an individual is abstract and as such can not be quantified or qualified by any document as a proof to be presented to another person or business entity. Thus, a life insurance cannot be used as a collateral to obtain credits or loans from a financial institution or investors.

Navistar Trucking has adopted a new approach to capital budgeting. What is the fundamental way in which the new approach differs from the traditional approach

Answers

Answer:

They use a capital budgeting approach that has a bigger planning cycle, also focus is on shareholder value

Explanation:

Navistar Trucking adopted capital budgeting accounting system. This entails estimating if the price being paid for long term investments in projects and equipment is worthwhile.

Methods like internal rate of return, payback period, and net present value are used to assess value of investment.

Navistar trucking plans its capital budgeting in 5-10 years unlike traditional approach that does so every year.

Also focus is on increasing the value of shareholders over time.

Lakeesha bought 300 shares of stock at $48.25 per share. Her broker charges 3% commission for round lots and 4% for odd lots. Calculate the total cost of the stock purchase.

Answers

Answer:

$14909.25

Explanation:

Given :

Recall : A round lot is any number of shares that can be evenly divided by 100 while an odd lot is any number of shares between 1 and 100.

Therefore, 300 shares will be classified as a round lot.

Commission paid on round lot = 3%

Price per share = $48.25

Share price for 300 : ($48.25 * 300) = $14,475

Commission fee = 3% * 14475 = $434.25

Total cost of stock purchase :

$(14475 + 434.25)

= $14909.25

In order to stay calm in emergency situations, dispatchers and EMT's set aside their emotions during a crisis. After the crisis has concluded, the employee often talks about the situation to let out the emotions withheld previously. Which emotion regulation does this best describe

Answers

Answer:

Cognitive reappraisal

Explanation:

In simple words, The term "cognitive reappraisal" relates to a flexible regulation technique that uses cognitive control and executive functioning to reinterpret inputs or events in the surrounding in order to alter their interpretation as well as psychological connotation.

Thus, from the above we can conclude that the correct answer is cognitive reappraisal.

Nike has so far had $30,000,000 in losses at its shoe factory in Vietnam in 2017. The additional revenue that it will earn from producing an additional shoe is $100 while the additional cots incurred for that additional shoe is $99.99. Should Nike continue operations in that factory and produce that additional shoe

Answers

Answer: c. Yes, because the marginal revenue from producing the additional shoe is greater than the marginal costs.

Explanation:

When making financial decisions, companies abide by the principle of Sunk Costs. This means that money that has already been spent, should not have any effect on future financial decisions. The $30 million that has been lost already will therefore not be considered.

The only figures now are the additional cost and revenue. The additional revenue is more than the additional cost so this shoe should be produced because it brings in a profit of $0.01.

Company Company A Company B Forecasted return 7% 11% Standard deviation of returns 8% 23% Beta 1 3 The market risk premium is 6% and the risk-free rate is 3%. Using Capital Asset Pricing Model (CAPM), will you invest in the companies

Answers

Answer and Explanation:

The computation is shown below:

As we know that

Required rate of return = Risk Free Rate +  Beta × (Market Return -Risk Free Rate)

For company A

= 3% + 1 × 6%

= 9%

For Company B

= 3% + 3  ×  6%

= 21%

As we can see that the forecast return should be lower than the required return so we should not invest in company A also the same is done in company B too

Therefore we dont invest in any of the company

Hugh is in charge of creating the value proposition for a new start-up company. In order for him to create an effective value proposition, what questions does he need to answer for a potential consumer

Answers

Answer:

Who is the target buyer for the offering, what is the offering to the buyer, why is the offering unique for the customer

Explanation:

Since in the given situation, it is mentioned that the hugh developed the value proposition for newly startup company so for developing the effective value proposition he need to answer the question for a consumer that involved about the target purchaser who is offering, the offering made to the buyer and the unique offering made to the customer

These 3 types of questions he need to answer

Assume Peanut Butter and Jelly are two complement products. For both markets explain what happens for an increase in the Supply of Jelly to both the Peanut butter and Jelly markets.

Answers

Answer:

Complementary goods are goods that are consumed together

If the supply of Jelly increases, the supply curve for jelly shifts rightward. As a result of the rightward shift, price decreases and quantity increases.

Because jelly and peanut butter are complements, an increase in the supply leads to an increase in the supply of peanut butter.

the supply curve of peanut butter shifts outward also. As a result of the rightward shift, price decreases and quantity increases.

Explanation:

A complimentary service or product is one that is employed in connection with just another good or service. When ingested solo, the complement product is usually of little or no value. If a commodity has a positive connection with another product, it is considered complimentary.

The supply curve for jelly goes rightward as the supply of jelly increases. Price drops and quantity volume increases of the rightward shift. Because jelly and peanut butter complement one other, an increase in jelly availability leads to an increase in peanut butter supply. Peanut butter's supply curve is also shifting outward. Price decreases and quantity increases as a result of the rightward shift.

The cross-price elasticity of demand is equal to 2 and larger than 1, indicating that demand is elastic and positive since wheat and rice are complimentary items, and as the price of wheat rises, so does the demand for rice.

To know more about the complementary goods, refer to the link below:

https://brainly.com/question/1240785

How jse reported the negative impact of the coronavirus on the economic conditions​

Answers

Answer:

C

Explanation:

sorry if im wrong tried my best

If a company selects either of Project 1 or Project 2 (or both), then either Project 3 or Project 4 (or both) must also be selected. Which of the following constraints enforce this condition?
a. X1 + X2 ≤ 2(X3 + X4)
b. X1 + X2 ≤ X3 + X4
c. X1 − X3 = X2 − X4
d. X1 + X2 + X3 + X4 ≤ 2

Answers

Answer:

b. X1 + X2 ≤ X3 + X4

Explanation:

b. X1 + X2 ≤ X3 + X4

The situation tells us that the sum of both 1 and 2 must be equal to the sum of 3 and 4 which is true, because if both projects 1& 2 are selected then the both projects 3 & 4 must also be selected.

The rest of the choices are wrong because

a. X1 + X2 ≤ 2(X3 + X4)

The sum of projects 1& 2  is not less than 2 times sum of projects 3 & 4 .

c. X1 − X3 = X2 − X4

If we leave project 3 then project 4 cannot be left out.

d. X1 + X2 + X3 + X4 ≤ 2

any two projects out of the four cannot be chosen. 1 must be chosen from 1&2  and the other from 3 &4.

On January 1, 2009, Diego owed $14,033 to his friend Ricardo, who was kind enough not to charge Diego any interest. Each month during 2009, Diego paid Ricardo some of the money he owed. If Diego still owed Ricardo $8,261 on January 1, 2010, what was the average amount of Diego's monthly payments?

Answers

Answer:

$481

Explanation:

Amount paid = Amount lent - Amount left

Amount paid = $14,033 - $8,261

Amount paid = $5,772

Average amount paid each month = Amount paid / Number of months

Average amount paid each month = $5,772 / 12

Average amount paid each month = $481

So, the average amount of Diego's monthly payments is $481.

On January 1, 20X8, Parent Company acquired 90 percent ownership of Subsidiary Corporation, at underlying book value. The fair value of the noncontrolling interest at the date of acquisition was equal to 10 percent of the book value of Subsidiary Corporation. On Mar 17, 20X8, Subsidiary purchased inventory from Parent for $90,000. Subsidiary sold the entire inventory to an unaffiliated company for $120,000 on November 21, 20X8. Parent had produced the inventory sold to Subsidiary for $62,000. The companies had no other transactions during 20X8.
Based on the information given above, what amount of sales will be reported in the 20X8 consolidated income statement?
a. $62,000
b. $120,000
c. $90,000
d. $58,000

Answers

Answer:

b. $120,000

Explanation:

The computation of the amount of sales will be reported in the 20X8 consolidated income statement is shown below;

= Total consolidated sales - Intra company sales

= $120,000 + $90,000 - $90,000

= $120,000

Hence, the  amount of sales will be reported in the 20X8 consolidated income statement is $120,000

Therefore the option b is correct

Suppose net exports and net capital outflow are in equilibrium in a small open economy. If foreign governments adopt expansionary fiscal policy, in the small open economy the real exchange rate ____________ and net exports ____________. g

Answers

Answer:

the small open economy the real exchange rate DEPRECIATES and net exports INCREASE.

Explanation:

If the government adopts an expansionary monetary policy, then the country's currency will depreciate since a higher interest rate will result in a lower value according to the PPP thoery. When a currency depreciates, the exports become cheaper for foreign countries, so they increase. While the imports become more expensive and they decrease.

Cash Received from Customers—Direct Method Sales reported on the income statement were $480,000. The accounts receivable balance increased $54,000 over the year. Determine the amount of cash received from customers. $fill in the blank 1

Answers

Answer:

$426000

Explanation:

Cash = sales - account receivable

480000 - 54000 = $426000

If a manager wanted to be sure that most of her/his employees would not be late, how much time would she/he suggest they allow for the commute if the average speed were 30 miles per hour

Answers

Answer:

13.5 , 15.1

Explanation:

Hypothesis testing is used to identify the mean for number of miles. 95% confidence interval is used with test statistics value. The test stats value is determined to identify the critical region where most of the population lies in. The 95% confidence interval mean is between 13.5 - 15.1

Samantha Rose Inc. made a $25,000 sale on account with the following terms: 1/15, n/30. If the company uses the net method to record sales made on credit, how much should be recorded as revenue

Answers

Answer:

$24,750

Explanation:

The computation of the amount that should be recorded is shown below"

Sales on account = $25,000

Credit term = 1/15, n/30

Sales discount rate = 1%

Now  

Sales discount = Sales on account × Sales discount rate

= 25,000 × 1%

= $250

So,

Net sales = Sales- Sales discount

= $25,000 - $250

= $24,750

Suppose that the U.S. government decides to charge wine producers a tax. Before the tax, 40 billion bottles of wine were sold every year at a price of $7 per bottle. After the tax, 35 billion bottles of wine are sold every year; consumers pay $9 per bottle, and producers receive $6 per bottle (after paying the tax). The amount of the tax on a bottle of wine isper bottle. Of this amount, the burden that falls on consumers isper bottle, and the burden that falls on producers isper bottle. True or False: The effect of the tax on the quantity sold would have been larger if the tax had been levied on consumers.

Answers

Answer and Explanation:

The computation is shown below:

The amount of the tax for the wine bottle is

= $9 per bottle - $6 per bottle

= $3 per bottle

Before the tax, the price per bottle is $7 per bottle

The Tax burden on consumers is

= $9 - $7

= $2 per bottle

And, the tax burden on producers is

= $7 per bottle - $6 per bottle

= $1 per bottle

So, the given statement is false as the impact would remain the same whether it is for producer or consumer

Several explanations account for the limited use of quantitative management. Many aspects of a management decision _____ expressed through mathematical symbols and formulas.

Answers

Answer:

cannot

Explanation:

Quantitative management can be regarded as approach to management that makes utilize tools such as computers as well as mathematical techniques inorder to sift through financial statistics in stocks selection and others. Managers do use Quantitative management in observing historical quantitative relationships as well as to incorporate all the relationships into what is known as “models,” so stocks can be picked.

Quantitative techniques helps managers to use variety of tools from

operational research, statistics as well as mathematics and economics. It should be noted that Several explanations account for the limited use of quantitative management. Many aspects of a management decision cannot expressed through mathematical symbols and formulas.

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