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
melomori [17]
3 years ago
12

Clara is looking into investing a portion of her recent bonus into the stock market. While researching different companies, she

discovers the following standard deviations of one year of daily stock closing prices. Masterful Pocket Watches: Standard deviation of stock prices =$9.65 Eye Remember Enterprises: Standard deviation of stock prices =$1.05 Based on the data and assuming these trends continue, which company would give Clara a stable long-term investment
Business
1 answer:
EastWind [94]3 years ago
6 0

Answer:

Eye Remember Enterprises

Explanation:

In finance, standard deviation is the mostly used metric that is used to determine stability or variability and relative risk of investments.

Standard deviation in finance shows the the historical volatility of an investment when it is applied to that investment's annual rate of return.

When the standard deviation of securities is high, the variance between the mean price and price of each security will also be high. Likewise, when the standard deviation of securities is low, the variance between the mean and price of each security will also be low.

The standard deviation of volatile stock is usually high, while a stable stock usually has a low standard deviation.

Therefore, the stock of Eye Remember Enterprises would give Clara a stable long-term investment because the standard deviation of its prices of $1.05 is lower than $9.65 which is the standard deviation of stock prices of Masterful Pocket Watches.

You might be interested in
What effect do challenging team goals have on social loafing?
dmitriy555 [2]
I think it’s C but I’m not quite sure about that
6 0
2 years ago
Which of the following statements about the marketplace of ideas is true? The British created the marketplace of ideas in the se
pentagon [3]

Answer:

Private groups and the news media play important roles in shaping opinions in the marketplace of ideas.

Explanation:

The marketplace of ideas denotes to the thought and belief of the idea that the authenticity of the truth or its acceptance depends upon the level of competition which the ideas have with one another. This is irrespective of the view that the truth has been provided by the government or by any authority.

8 0
3 years ago
What two cultural factors influenced the variety of Chinese lays potato chip flavors
mel-nik [20]

Answer:

China and Japan.

Explanation:

:DDD

6 0
3 years ago
Old Camp Company manufactures awnings for its own line of tents. The company is currently operating at capacity and has received
Helen [10]

Answer:

It is more convenient to continue the production in house.

Explanation:

Giving the following information:

The company is currently operating at capacity and has received an offer from one of its suppliers to make the 12,000 awnings it needs for $25 each. Old Camp’s costs to make the awning are $12 in direct materials and $7 in direct labor. Variable manufacturing overhead is 70 percent of direct labor. If Old Camp accepts the offer, $42,000 of fixed manufacturing overhead currently being charged to the awnings will have to be absorbed by other product lines.

Make in house:

Variable costs= 12 + 7 + (7*0.70)= $23.9

Total variable costs= 23.9*12000= 286,800

Buy= 25*12,000= $300,000

It is more convenient to continue the production in house.

3 0
3 years ago
What are the importance of watermill​
mixer [17]

Answer:

Explanation:

A watermill or water mill is a mill that uses hydropower. It is a structure that uses a water wheel or water turbine to drive a mechanical process such as milling (grinding), rolling, or hammering. Such processes are needed in the production of many material goods, including flour, lumber , paper, textiles, and many metal products.

5 0
3 years ago
Other questions:
  • You want the salespeople on your staff to perform at their best, thus you want to make sure they are properly supervised. In det
    8·2 answers
  • To remedy the high crash rates among young drivers ,blank is being implemented in several states
    13·1 answer
  • Powell Company began the Year 3 accounting period with $40,000 cash, $86,000 inventory, $60,000 common stock, and $66,000 retain
    14·1 answer
  • The allocative function of price cannot operate unless there is:
    12·1 answer
  • George enjoys being on the debating team, but he is taken off the team when he inadvertently utters an obscene word during a deb
    10·1 answer
  • A fire destroyed some of Powell Company's records. Information from the documents found related to inventory is listed below. En
    15·2 answers
  • On July 1, Year 1, Denver Corp. purchased 3,000 shares of Eagle Co.�s 10,000 outstanding shares of common stock for $20 per shar
    14·1 answer
  • After segmenting and defining their target​ markets, what should retailers do​ next?
    5·2 answers
  • Market efficiency Financial theorists have identified two different types of efficiency in financial markets. The first, informa
    11·1 answer
  • What happens to a monopolistically competitive firm that begins to charge an excessive price for its product?.
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!