Select the correct answer from each drop-down menu.

A security with normally distributed returns has an annual expected return of 18% and a standard deviation of 23%. the probility

Igoryamba

The probability that a randomly selected data from a normally distributed dataset with mean of μ, and standard deviation of σ, is less than a value x is given by:

$P(X\leq x)=P\left(z\ \textless \ \frac{x-\mu}{\sigma} \right)$

Given that a security with normally distributed returns has an annual expected return of 18% and a standard deviation of 23%.

$\mu=18\% \\ \\ \sigma=23\%$

The probability of getting a return of -28% or lower in any one year is given by:

$P(X\leq x)=P\left(z\ \textless \ \frac{x-\mu}{\sigma} \right) \\ \\ P\left(z\ \textless \ \frac{-28-18}{23} \right)=P(z\ \textless \ -2) \\ \\ =\bold{0.0228}$

6 0

3 years ago

The making of the movie Waterworld cost a total of $180 million. It generated a total of $130 million in revenues. $70 million w

slava [35]

Answer:

Losses for the producers of Waterworld, if they finished the movie would be $50 million. If they did not finish the movie, losses would be $130 million.

Explanation:

This is because, the difference between all their expenses in making the movie and the revenue generated is actually $50 million. This happens to be their losses while on the other-hand, if they didn't finish making the movie, it would be $130 million (aside the cost spent in finishing the movie after rebuilding the set)

5 0

4 years ago

Sid Salesman sold Bea Buyer a used 2004 Camry for 8,000. The morning after the contract was signed, Sid called Bea to say that h

ExtremeBDS [4]

Answer:

A. No, this was a unilateral mistake of fact by Sid.

8 0

4 years ago

James wants to take out a loan. He can afford to make monthly payments of 200 dollars and wants to pay the loan off after exactl

MA_775_DIABLO [31]

A = $250000 * (1 + 0.06/12)^(12 * 1/6)

≈ $252506.25

4 0

4 years ago

Utopia Corporation provides $6,000 worth of lawn care on account during the month. Experience suggests that about 3% of net cred

photoshop1234 [79]

Answer:

The answer is C.

Explanation:

Credit sales is $6,000

Bad debt is 3% of net credit sales which is $180($6,000 x3%)

Creating allowance for doubtful debt entry is one of the prudent method and it tells us that some customers won't pay part of what they are owing. And it is also a contra account that offset bad debt.

According to the accounting rule, debit increases asset and expenses and vice-versa while credit decreases liability, equity, income and vice versa.

So we have have:

Dr Bad debt expense $180

Cr Allowance for Doubtful Accounts $180

6 0

3 years ago