1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
fgiga [73]
2 years ago
14

Consider the following scenario analysis:

Business
1 answer:
seropon [69]2 years ago
3 0

Based on the scenario analysis on stocks and bonds, we know the following:

  • Treasury bonds will provide a higher return in a recession than in a boom.
  • The expected return of Bonds is 9.8% and that of stocks is 11.6%.
  • The standard deviation of Bonds is 9.24% and that of stock is 11.76%.

<h3>What does the scenario analysis on Bonds and Stocks show?</h3>

In a recession, Bond returns will be 15%. This is much higher than Bond returns in a boom of only 5%.

The expected return on bonds will be:

= ∑(Probability of Scenario x Returns in scenario)

= (0.30 x 15%) + (0.60 x 8%) + (0.10 x 5%)

= 9.8%

The expected return on stocks will be:

= (0.30 x -6%) + (0.60 x 18%) + (0.10 x 26%)

= 11.6%

Using a spreadsheet, you can input the expected returns of the stocks and the bonds to find the standard deviation to be 9.24% and 11.76%, respectively.

Find out more on stock expected returns at brainly.com/question/18724022.

#SPJ1

You might be interested in
2. Skip and Peggy are brother and sister and they fight about everything. Skip says that perfectly competitive firms maximize pr
finlep [7]

Answer: They are both right.

Explanation:

Firms in every market will always maximise profit where their Marginal Revenue equals Marginal Cost because at this point, resources are being fully utilized. This is therefore no different in a Perfectly competitive market so Skip is correct.

Peggy is also correct however because in a Perfectly Competitive market, the demand curve is perfectly elastic. This creates a situation where the Price, Marginal Revenue and Average Revenue are all the same and represent the demand curve as well.

With the Price being the same as the Marginal Revenue in a Perfectly competitive firm, that means that where the Price equals Marginal Cost is where the Marginal Revenue equals Marginal Cost as well so indeed perfectly competitive firms maximize profit where price equals marginal cost.

5 0
3 years ago
Wainwright Corporation owns and operates a wholesale warehouse.
KATRIN_1 [288]

Answer:

Operating transactions

-$5000

-$6000

-$70000

$55000

Total = -$26000

Financing transactions

+ $300000

+ $30000

Total = $330000

Investing transactions

-$10000

- $30000

Explanation:

Operating transactions

-$5000

-$6000

-$70000

$55000

Total = -$26000

Financing transactions

+ $300000

+ $30000

Total = $330000

Investing transactions

-$10000

- $30000

8 0
3 years ago
What is unique about a dual-axis chart?
Semmy [17]

Answer: B

Or Data is charted by two different types of data.

Explanation:

I got it right

3 0
3 years ago
Shockingly inadequate consideration can indicate the existence of what exceptions? choose three:
Kipish [7]

This can indicate fraud, duress, or undue influence.

In contracts, "consideration" is the things of value each side gives up in an exchange. So if one side gives $1 for a cup of coffee, that might be ok. Now, consider if the contract was to sell your entire house for $1! That would be a shockingly inadequate exchange because even the cheapest home is worth way more than $1.

In that case, the judge might look at <em><u>why</u></em> someone would be willing to give up so much for so little. Were they falsely told there home was worth nothing or maybe told that they would get $1 upfront and more later? That would be <u>fraud</u>. Were they told to sign the contract with a gun pointed at their head? That is an example of <u>duress</u>. Finally, did the person helping them with the contract have undue influence? If your boss, parent, or favorite celebrity advises you to do something that you don't want to do, but you worry about what they will thing if you don't, then you were a victim of their <u>undue influence. </u>

6 0
3 years ago
Rachael’s Restaurant, a fast-food restaurant company, operates a chain of restaurants across the nation. Each restaurant employs
hodyreva [135]

Answer:

a. Advertisement cost relative to number of customers <u>Fixed </u>

b. Rental cost relative to number of restaurant <u>Variable </u>

c. Cooks salaries relative to number of customer <u>Fixed </u>

d. Cost of Supplies (cups, plates, spoons, etc.) relative to number of customer <u>Variable </u>

e. Manager's compensation relative to number of customer <u>Mixed </u>

f. Servers' salaries relative to number of Restaurants <u>Variable</u>

7 0
3 years ago
Other questions:
  • Keithomp, a company that manufactures and exports candies, sells different flavors of candy depending on the taste preferences o
    10·1 answer
  • Which answer is not true? the u.s. treasury, through its bureau of the mint and bureau of engraving and printing, produces the n
    14·1 answer
  • During the 1920s, competition increased and businesspeople realized they had to do more than just focus on manufacturing, which
    9·1 answer
  • 1. Famous celebrities and the super-wealthy oftentimes pay others to do many of their household tasks for them. For example, the
    13·1 answer
  • Pepe, Incorporated acquired 60% of Devin Company on January 1, 2017. On that date Devin sold equipment to Pepe for $45,000. The
    10·1 answer
  • You just got a job and plan to spend your earnings on clothes and
    9·1 answer
  • On July 15, 2021, Cottonwood Industries sold a patent and equipment to Roquemore Corporation for $750,000 and $325,000, respecti
    15·1 answer
  • What is the meaning of market testing?
    13·2 answers
  • All of the following statements about flexible spending accounts (FSAs) are TRUE, EXCEPT:
    9·1 answer
  • How much would you need to deposit in an account now in order to have $3000 in the account in 15 years
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!