a construction manager just starting in private practice needs a van to carry crew and equipment. she can lease a used van for $
1 answer:
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Answer:
The answer to this question can be defined as follows:
Explanation:
Please find the graph in attachment.
In point a.
The candy bar price
In point b.
The music download price
In point c.
The opportunity cost for music download
In point d.
The opportunity cost for a candy bar
In point e.
The cost of opportunity won't change as the price of the items is constant.
Answer:
14.86%
Explanation:
For computing the standard deviation, first we have to determine the expected return and then variance which is shown below:
= (Expected return of the boom × probability of boom) + (expected return of the normal growth × probability of normal growth) + (expected return of the recession × probability of recession)
= (0.30 × 0.40) + (0.11 × 0.40) + (-0.10 × 0.20)
= 0.12 + 0.044 - 0.02
= 0.144
Now the variance would equal to the
= Probability × (Return - Expected Return) ^2
For boom:
= 0.40 × (0.30 - 0.144) ^2
= 0.0097344
For normal growth:
= 0.40 × (0.11 - 0.144) ^2
= 0.0004624
For recession:
= 0.20 × (-0.10 - 0.144) ^2
= 0.0119072
So, the total variance would be
= 0.0097344 + 0.0004624 + 0.0119072
= 0.022104
Now as we know that
Standard deviation is
= 14.86%