A stock has an average return of 13.6% and a standard deviation of 8.4%. In any one given year, you have a 95% chance that you will not lose more than _____% nor earn more than ____% if you invest in this security.
a. 5.2% to 22.0%.
b. 3.2% to 30.4%.
c. 3.2% to 30.4%.
d. 5.2% to 22.0%.
e. 13.6% to 38.8%.

Answers

Answer 1

Answer:

options B and C are identical, and they are both right.

b. 3.2% to 30.4%. c. 3.2% to 30.4%.

you have a 95% chance that you will not lose more than 3.2% nor earn more than 30.4% if you invest in this security.

Explanation:

a 95% confidence level represents approximately 2 standard deviations, so the stock could lose up to 13.6% - (2 x 8.4%) = -3.2% in the worse case scenario. You should also be able to earn 13.6% + (2 x 8.4%) = 30.4% in the best case scenario.


Related Questions

The Chester Company has just purchased $40,900,000 of plant and equipment that has an estimated useful life of 15 years. The expected salvage value at the end of 15 years is $4,090,000. What will the book value of this purchase (exclude all other plant and equipment) be after its third year of use? (Use FASB GAAP
a) $32,720,000
b) $29,448,000
c) $35,446,667
d) $33,538,000

Answers

Answer: d) $33,538,000

Explanation:

Use straight line depreciation and find the annual depreciation.

= (40,900,000 - 4,090,000) / 15

= $‭2,454,000‬

In 3 years, the depreciation is;

= ‭2,454,000‬ * 3

= $‭7,362,000‬

Net book value = 40,900,000 - ‭7,362,000‬

= $‭33,538,000‬

When a single broker represents both parties in a real estate transaction, a _______ agency may exist.

Answers

Answer:

Dual

Explanation:

real estate transaction,which is used to convey ownership of a particular property to the buyer whereby there is a mutual agreement on some terms. The contract may be long it in shirt time.the end process is usually reffered to as “closing,” and this is a term that explains that both parties need to fulfill all terms and conditions that is associated with the exchange.

It should be noted that When a single broker represents both parties in a real estate transaction, a dual agency may exist.

Suppose, that after a successful career, a worker retired precisely as planned with precisely the amount saved that they intended. Upon retirement, they reduced their consumption and spent much less, living a much more simple life. Is this behavior consistent with the permanent income hypothesis?

Answers

Answer: Yes it is

Explanation:

The Permanent Income Hypothesis posits that human expenditure in the short term is based on the amount of income they expect to get as income over the long term.

If a person for instance, knows that they will receive a pay cut at the end of the year, they will probably spend less today to survive the pay cut.

Same goes for the worker in this scenario. They know that the amount they saved is all they have now and into the future so they are adjusting their expenses to ensure they survive on that saving.

Calculate the average stock in a department with annual sales of $1,840,000 and an annual stock turnover of 5.4.

Answers

Answer:

$366,667

Explanation:

Average stock can be regarded as stock at the beginning of the period as well as stock towards ending of it

Given:

annual sales =$1,840,000

annual stock turnover =5.4.

average stock can be calculated as

average stock =annual sales/

annual stock turnover

= 1,840,000/ 4.5

= $366,667

Hence the average stock in a department is $366,667

Changes in technology can cause changes in the productivity of a resource. Technological change can be economy-wide, industry-specific, or can occur within one firm's production process. Explain how a change in the productivity of a resource changes the demand for the resource. Give an example.

Answers

Explanation:

Globalization is a worldwide phenomenon caused by technological changes, with a greater possibility of communication between countries, there was a revolution in business, which became much more profitable when they were present in several countries in the world. An example of a change in the productivity of a resource that has been directly impacted by technological changes is the cell phone industry.

The change in resource productivity occurs both internally and externally to this niche, since with the globalization and ease of doing business outside the organization's host country, there is a quest to make the global value chain, with a focus on labor and cheaper raw material.

It is also necessary to consider that in the cell phone industry, technological change has added new features to the product making the device that only made connections a smartphone, a device with multiple features and internet access, such as Apple, which with advanced technology reaches every more consumers around the world.

my bunnies Lola (gray and white) and Sylvester (brown)

Answers

Answer:

cute

Explanation:

theyre so cute

Answer:

omg your bunnies are SO cute!

Explanation:

:D

Big Wheel, Inc. collects 25% of its sales on account in the month of the sale and 75% in the month following the sale. Sales on account are budgeted to be $17,900 for March and $50,600 for April. What are the budgeted cash receipts from sales on account for April

Answers

Answer:

$26,075

Explanation:

Follow the  Receipt Cycle that has been stated but this time focusing on the month of April

Receipts :

Collection for April Sales ( $50,600 × 25%)  = $12,650

Collection for March Sales ( $17,900 × 75%) = $13,425

Total Collection in April                                  = $26,075

Therefore, Total cash receipts from sales on account for April  are  $26,075.

Which activity does the IRS allow nonprofit organizations to engage in?

advertising tax deductions for donations
compensating business owners based on profits
selling pharmaceuticals if it is a healthcare organization
increasing the value of shareholder’s investments

Will give brainliest to correct answer!

Answers

Answer: advertising tax deductions for donations

Explanation:

The activity does the IRS allow nonprofit organizations to engage in is

advertising tax deductions for donations.

What is IRS?

It stands for Internal revenue service that administered the federal tax laws. In this, it contains the processing of tax return, tax payer service, and the enforcement.

So based on this, we can say that The activity does the IRS allow nonprofit organizations to engage in is advertising tax deductions for donations.

learn more about revenue here: https://brainly.com/question/24506060

At contract maturity the value of a call option is ___________, where X equals the option's strike price and ST is the stock price at contract expiration.
a. max (0, ST - X)
b. min (0, ST - X)
c. max (0, X - ST)
d. min (0, X - ST)

Answers

Answer:

A. Max (0, ST - X)

Explanation:

call option which is also known as a "call", can be regarded as a contract, that exist between both buyer as well as the seller of the call option, in so that security exchange at a set price can occur. It should be noted that At contract maturity the value of a call option is Max (0, ST - X) where X equals the option's strike price and ST is the stock price at contract expiration.

ways to improve productivity in the workplace

Answers

You need motivation..

If the abnormal return for a stock during the first week is +5 percent and +3 percent during the second week, what is the abnormal return for the two-week period?
A) 5 percent
B) 3 percent
C) 8.15 percent
D) 8 percent

Answers

Answer:

C) 8.15 percent

Explanation:

The computation of the abnormal return for the two week period is as follows:

Abnormal return is

= (1 + first week abnormal return) × (1 + second week abnormal return) - 1

= (1 + 5%) × (1 + 3%) - 1

= 1.0815% - 1

= 8.15%

Hence, the correct option is c.

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

And, the same is to be considered

In general, the consumers who seek out Louis Vuitton branded products are more likely to be _______.
a. price-conscious.b. prestige-sensitive.c. bargain shoppers.d. cost-sensitive.e. value-conscious.

Answers

Answer:

c).prestige-sensitive

Explanation:

Prestige sensitivity can be regarded as

favourable perceptions of price which is as a result of prominence as well status of the company that produce the product. Prestige-sensitive buyers prefer to go for product with prominence and status. It should be noted that In general, the consumers who seek out Louis Vuitton branded products are more likely to be prestige-sensitive.

The letters in acronymic abbreviations must be

Answers

Answer:

In a correct order.

Explanation:

For a pure competition firm if price is less than the minimum of the __________, output at 0 will result in less loss than producing at any other level.

Answers

Answer:

need more information

Explanation:

For a pure competition firm is charging a price less than the minimum average variable cost at zero output , will result in a loss than producing at any other level.

What is a pure competition firm?

A theoretical market structure is referred to as pure competition. There are numerous buyers and sellers, and prices are determined by supply and demand. Companies make only enough money to stay in business. If they made too much money, other companies would enter the market and drive down profits.

If a profit-maximizing firm produces a positive output in the short run, then the market price must be greater than or equal to the Average variable cost (AVC) at that output level. Hence when price is less than minimum AVC, the firm produces zero output.

Therefore the market price is less than average variable cost for zero output for pure competition firm.

To learn more about, pure competition, click here:

https://brainly.com/question/28189773

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How should state appropriations to a state universoty choosing to report as engaged only in business-type activities be reported in its statement of revenues?

Answers

Answer: Non-Operating revenues

Explanation:

Such an activity will be recorded as a non-operating revenue in a proprietary fund in the university as these funds record revenues and expenses and will differentiate between operating revenues and non-operating revenues.

This is a nonoperating revenue as it is considered a nonexchange transaction where a government department or agency gives resources to another department or agency and mandates that they do something specific with it without expecting anything equal in return.  

Amy Farmer is getting a loan to buy a used car.The bank wants to know the trade-in value of the car she is purchasing.Which of the 5 Cs of credit is the bank examining?
A) Character
B) Capacity
C) Capital
D) Collateral
E) Conditions

Answers

Answer:

D) Collateral

Explanation:

In the given situation it is mentioned that the Amy farmer wants a loan so that Amy could purchased the car also the bank wants to know the car trade in value So here the examination done by the bank would be collateral as the loan is to be taken for buying a car

So the same is to be considered

hence, the correct option is D

And all the other options are incorrect

You are a U.S. investor who purchased British securities for 2,340 pounds one year ago when the British pound cost $1.52. No dividends were paid on the British securities in the past year. Your total return based on U.S. dollars was __________ if the value of the securities is now 2,440 pounds and the pound is worth $1.61.
a. 16.7%.
b. 20.0%.
c. 12.5%.
d. n/a.

Answers

Answer:

d. n/a

Explanation:

Calculation for Your total return based on U.S. dollars

Total return=(2,440 pounds*$1.61)- (2,340 pounds*$1.52)/ (2,340 pounds*$1.52)

Total return=$3,928.4-$3,556.8/$3,556.8

Total return=$371.60/$3,556.8

Total return=0.1045*100

Total return=10.45%

Therefore Your total return based on U.S. dollars was 10.45%

Solo Corp. is evaluating a project with the following cash flows:
Year Cash Flow 0 $28100 1 10,300 2 13,000 3 14,900 4 12,000 5 — 8,500
The company uses an Interest rate of 8 percent on all of Its projects.
a. Calculate the MIRR of the project using the discounting approach. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places. e.g., 32.16.)
b. Calculate the MIRR of the project using the reinvestment approach. (Do not round Intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
c. Calculate the MIRR of the project using the combination approach. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
a. Discounting approach MIRR %
b. Reinvestment approach MIRR %
c. Combination approach MIRR €Y.

Answers

Answer and Explanation:

The computation of MIRR under the following methods are shown below:

a. Using the Discounting Approach:

Interest Rate = 8%

The Present Value of Cash Outflows os

= -$28,100 - $8,500 ÷ 1.08^5

= -$33,884.96

Now  

Let us assume the MIRR be i%

So,

0 = -$33,884.96 + $10,300 ÷ (1 + i) + $13,000 ÷ (1 + i)^2 + $14,900 ÷ (1 + i)^3 + $12,000 ÷ (1 + i)^4

Now use the financial calculator, after using it i is 17.18%

Thus, MIRR is 17.18%

b. Using the Reinvestment Approach:

Interest Rate = 8%

The Future Value of Cash Flows is

= $10,300 × 1.08^4 + $13,000 × 1.08^3 + $14,900 × 1.08^2 + $12,000 × 1.08 - $8,500

= $52,228.65  

Let us assume MIRR be i%

So,  

0 = -$28,100 + $52,228.65 ÷ (1 + i)^5

(1 + i)^5 = 1.85867

1 + i = 1.1320

i = 0.1320

= 13.20%

Thus, MIRR is 13.20%

c. Using the Combination Approach:

Interest Rate = 8%

Present Value of Cash Outflows is

= -$28,100 - $8,500 ÷ 1.08^5

= -$33,884.96

And,  

Future Value of Cash Inflows is

= $10,300 × 1.08^4 + $13,000 × 1.08^3 + $14,900 × 1.08^2 + $12,000 × 1.08

= $60,728.65

Let us assume MIRR be i%

So,  

0 = -$33,884.96 + $60,728.65 ÷ (1 + i)^5

(1 + i)^5 = 1.7922

1 + i = 1.1238

i = 0.1238

= 12.38%

Thus, MIRR is 12.38%

You have been offered a 10-year bond issued by Tiger Inc., at a price of $950.00. The bond has a coupon rate of 8% and pays the coupon semiannually. Similar bonds in the market offers a yield of 9% today. Should you buy the bonds at the offered price

Answers

Answer:

since the market price is lower than the offered price, you should reject this offer

Explanation:

bond's market value

PV of face value = $1,000 / (1 + 4.5%)²⁰ = $414.64

PV of coupon payments = $40 x 13.00794 (PV annuity factor, 20 periods, 4.5%) = $520.32

market price = $934.96

since the market price is lower than the offered price, you should reject this offer

The Office Supplies account is Select one: a. an asset, and it has a normal credit balance. b. a revenue, and it has a normal credit balance. c. an expense, and it has a normal credit balance. d. an asset, and it has a normal debit balance. e. a revenue, and it has a normal debit balance.

Answers

Answer:

C)

Explanation:

The information that follows relates to Khan Corporation:________.
Sales margin: 7.5%
Capital turnover: 2
Invested capital: $20,000,000
On the basis of this information, the company's sales revenue is:______.
A) $40,000,000.
B) $10,000,000.
C) $1,500,000.
D) $3,000,000.
E) None of the answers is correct.

Answers

Answer:40,000,000

Explanation:

Sales margin: 7.5%

Capital turnover: 2

Invested capital: $20,000,000

The company sales revenue will be calculated thus:

Capital turnover = Sales / Invested capital

Therefore, 2 = Sales / 20,000,000

Sales = 2 × 20,000,000

Sales = 40,000,000

Therefore,the company sales revenue is 40,000,000

Knight Corp. obtained land by issuing 3,000 shares of its $10 par value common stock. The land was recently appraised at $72,000. The common stock is actively traded at $25 per share. When recording the acquisition of the land, what amounts will be recorded in the Land and Common Stock accounts?

Answers

Answer: See explanation

Explanation:

From the question, we are informed that Knight Corp. obtained land by issuing 3,000 shares of its $10 par value common stock and that the land was recently appraised at $72,000 while the common stock is actively traded at $25 per share.

When recording the acquisition of the land, what amounts will be recorded in the Land and Common Stock accounts goes thus:

Debit: Land 3000 × $25 = $75000

Credit: Common stock = 3000 × $10 = $30,000

Therefore, the amount that will be recorded in the Land is $75000 and Common Stock accounts is $30000

Jamison Company had sales revenue and operating expenses of $5,000,000 and $4,200,000, respectively, for the year just ended. If invested capital amounted to $6,000,000, the firm's ROI was:_________
A. 13.33%.
B. 83.33%.
C. 120.00%.
D. 750.00%.

Answers

Answer:

A,. 13.33%.

Explanation:

Return on Investment (ROI) which gives the efficiency of a particular investment

We were given invested capital amounted as $6,000,000, and operating expenses as $5,000,000

We can calculate net income by substracing equal sales revenue from operating expenses

net income can be calculated as = ($5000000-$420000)

= $800000

ROI can be calculated as

net income/Capital investment

$800000/$6000000

=. 13.33%.

Suppose your production costs increased. In 1 or 2 sentences, describe the effect of this increase on the quantity of goods you supply.

Answers

Answer:

In the product process, margins define much of the procedure. If production costs increase, the quantity of goods produced will almost always decrease given the price of raw materials stays consistent.

Explanation:

In an effort to create a healthcare safety net, the government requires employers to provide healthcare coverage to all employees. What impact will this increased coverage have on the supply of hospital beds in the short run?
a. It will decrease the supply
b. It will not affect the supply.
c. It will increase the supply.

Answers

Answer: It will decrease the supply

Explanation:

From the question, we are informed that in order to create a healthcare safety net, the government requires employers to provide healthcare coverage to all employees. Due to this, there will a rise in the number of hospital beds that will be required to cover for more people.

Since there is an increase in demand, there will be a reduction in supply in the short run as the increase in demand will be more than the supply of bed.

Kyla is a salesperson for Liberty Financial Corporation. Micky is also a Liberty salesperson. Neil is Kyla and Micky's supervisor. Owen is a Liberty customer. Liberty may be liable for sexual harassment to Kyla by

Answers

Answer:

Mickey, Neil, or Owen

Explanation:

Question 3 of 10
When a nation's standards of financial reporting are transparent and effective:
OA. citizens tend to have greater confidence in the economy.
B. businesses are unable to foster good relationships with
customers
DC. businesses in the country tend to lose profits and resources.
OD. the country's laws can be more easily violated.

Answers

Answer:

A. citizens tend to have greater confidence in the economy.

Explanation:

When a nation's standards of financial reporting are transparent and effective, by extension, the citizens tend to have greater confidence in the economy.

This is because when the government are transparent about the financial affairs of the nation, the citizens are confident in the economy

An early 1970s government study ("Work in America") identified three chief sources of worker dissatisfaction. Which of the following is one of those sources?

Answers

Answer:

The right approach is "The rigidity of rules and regulations".

Explanation:

Laws, as well as regulations throughout the red tape, are also rigid as well as unyielding. Clear, simple to comprehend. Because once we speak about administrative management, there have been many disadvantages to something like the mere implementation of that kind of principle to administer any organization.

Maybe that's why the aforementioned is indeed the easiest alternative.

Swift Co. produces footballs. It incurred the following costs this year:
Direct materials $35,000
Direct labor 31,000
Fixed manufacturing overhead 22,000
Variable manufacturing overhead 38,000
Fixed selling and administrative expenses 23,000
Variable selling and administrative expenses 14,000
What are the total product costs for the company under variable costing?
Total product costs under variable costing $ _

Answers

Answer:

Total variable cost= $104,000

Explanation:

Giving the following information:

Direct materials $35,000

Direct labor 31,000

Variable manufacturing overhead 38,000

The variable costing method incorporates all variable production costs (direct material, direct labor, and variable overhead).

Total variable cost= 35,000 + 31,000 + 38,000

Total variable cost= $104,000

On June 1 of the current year, Cross Corp. issued $300,000 of 8% bonds payable at par with interest payment dates of April 1 and October 1. In its income statement for the current year ended December 31, what amount of interest expense should Cross report?
a. $14,000.
b. $6,000.
c. $12,000.
d. $8,000.

Answers

Answer: amount of interest expense  Cross  should report =a. $14,000.

Explanation:

interest expense = Principal( Face value) x Rate x period( Time)

Carrying value of the bond ( face value ) =$300,000

Rate= 8%

year ended on December, therefore The interest expense recorded would be for four months ( From June 1 to December 31 )

Therefore the Interest Expense = $300,000 x 8% x 7/12

= $300,000 x 0.08 x 7/12

= $168,000/12

$14,000

The amount of interest expense  Cross  should report at the current year end is $14,000

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