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ICE Princess25 [194]
2 years ago
14

An asset has an average return of 10.94 percent and a standard deviation of 20.98 percent. What range of returns should you expe

ct to see with a 95 percent probability
Business
1 answer:
valkas [14]2 years ago
8 0

If the standard deviation is 20.98%. The range you should expect to see with a 95 percent probability is: -31.02 percent to +52.9 percent.

<h3>Expected range of return </h3>

Expected range of return = 10.94 percent ± 2(20.98 percent)

Expected range of return =[10.94 percent- 2(20.98 percent)]; [10.94 percent + 2(20.98 percent)]

Expected range of return =(10.94 percent- 41.96 percent); (10.94 percent + 41.96 percent

Expected range of return = -31.02 percent to +52.9 percent

Inconclusion the range of returns is: -31.02 percent to +52.9 percent.

Learn more about expected range of return here:brainly.com/question/25821437

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An investment advisor buys 1000 shares of ABC common stock for his personal account. A short time later, the advisor buys 100,00
Colt1911 [192]

Answer:

In the interest of clients

Explanation:

Remember an investment advisor provides guidance to clients in exchange for agreed fees. Because of this relationship the Investment advisor owe a fiduciary duty to clients; meaning they are madated to put the clients’ interests over their own.

In this scenario the investment advisor first buys 1000 shares of ABC common stock for his personal account.

Considering the clients interest first he buys shares of ABC stock that are greater than his worth 100,000 which he allocates to customer accounts.

3 0
3 years ago
EcoFabrics has budgeted overhead costs of $1,162,350. It has allocated overhead on a plantwide basis to its two products (wool a
alina1380 [7]

Answer:

EcoFabrics

1. Overhead Rates using activity-based costing:

Cutting = $1.80 per machine hour

Design = $390 per setup

2. Allocation of overhead:

                                  Wool                            Cotton

Cutting                  $221,400                     $221,400

Design                    479,700                       239,850

Total allocated      $701,100                      $461,250

3. Overhead rate using the traditional approach:

Predetermined overhead rate = $2.10

4. Allocation of overhead:

                               Wool            Cotton

Total allocated   $581,175        $581,175

Explanation:

a) Data and Calculations:

Budgeted overhead costs = $1,162,350

Estimated direct labor hours = 553,500

Activity Cost      Cost Drivers   Overhead Costs   Wool   Cotton     Total

Pools                  

Cutting               Machine hours     $442,800   123,000 123,000 246,000

Design                Number of setups  719,550        1,230         615      1,845

1. Overhead Rates using activity-based costing:

Cutting = $1.80 ($442,800/246,000) per machine hour

Design = $390 ($719,550/1,845) per setup

2. Allocation of overhead:

                               Wool                                     Cotton

Cutting                  $221,400 ($1.80 * 123,000)  $221,400 ($1.80 * 123,000)

Design                    479,700 ($390 * 1,230)        239,850 ($390 * 615)

Total allocated      $701,100                               $461,250

3. Overhead rate using the traditional approach:

Predetermined overhead rate = $2.10 ($1,162,350/553,500)

4. Allocation of overhead:

                               Wool                                     Cotton

Total allocated   $581,175 ($1,162,350 * 50%)   $581,175 ($1,162,350 * 50%)

4 0
2 years ago
The Pampered Pet Shop operates in a perfectly competitive industry and hires you as an economic consultant. The firm is currentl
Sphinxa [80]

Answer:

c. cease production immediately, because it is incurring a loss.

Explanation:

When a business engages in production it looks to make profit. That is for the production price to be higher than cost incurred in producing the good.

However when the price is lower than the average variable cost as is indicated in the scenario then the firm needs to shut down production in the short term.

Factors that will adversely affect a firm in the short term are price, average total cost, and average variable cost.

Once price is less than average total cost or average variable cost it is better to stop production.

As they are incurring an economic loss

5 0
3 years ago
Read 2 more answers
The form of a business organization that is not affected by the withdrawal or death of an owner and can continue forever is
Marina86 [1]
<span>This is a corporation. Corporations usually consist of boards of directors and other groups of people, and can continue to exist even after the founders of the business cease to exist or otherwise leave their founding role.</span>
8 0
3 years ago
Negative externalities that arise from the production of a gooda. cause an increase in the demand for the goodb. cause a decreas
Dennis_Churaev [7]

Answer:

The correct answer is option c.

Explanation:

Externalities refers to the situation in which costs or benefits arising from the activities of someone are incurred or  received by the some other third party.

Externalities can be classified into two types, namely, positive and negative.

In case of negative externalities the cost arising from the activities of some person are incurred by a third party.

Negative externalities lead to market failure.

6 0
3 years ago
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