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bazaltina [42]
2 years ago
14

A manager buys three shares of stock today, and then sells one of those shares each year for the next 3 years. His actions and t

he price history of the stock are summarized below. The stock pays no dividends.
Time Price Action
0 $190 Buy 3 shares
1 200 Sell 1 share
2 200 Sell 1 share
3 200 Sell 1 share
A. Calculate the time-weighted geometric average return on this "portfolio."
B. Calculate the time-weighted arithmetic average return on this portfolio.
C. Calculate the dollar-weighted average return on this portfolio.
Business
1 answer:
SSSSS [86.1K]2 years ago
5 0

Answer:

a. The Geometric average return  is 1.72%

b. The Arithmetic average return is 1.75%

c. The Dollar weighted average return is 2.61%

Explanation:

a) In order to calculate the time-weighted geometric average return we would have to calculate first the Holding period return as follows:

Holding period return = (200 - 190) / 190 = 5.263%

Hence, Geometric average return = (1 + .05263)^(1/3) - 1 = 1.72%

b) To calculate time-weighted arithmetic average return we have to make the following calculation:

Arithmetic average return = 5.263% / 3 = 1.75%

c) To calculate time-weighted arithmetic average return we would have to make the following calculation:

Dollar weighted average return=-190*3 + 200/(1+r) + 200/(1+r)^2 + 200 / (1+r)^3 = 0

= 2.61%

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The bundle prices for Hydration Power Drink and Satisfying Smoothie are given below.

<h3>What is Contribution Margin?</h3>

The contribution margin (CM), also known as the dollar contribution per unit, is the difference between the selling price and the variable cost per unit.

Because 100% is the best contribution margin, the closer the contribution margin is to 100%, the better. The greater the figure, the better a company's ability to meet its overhead expenditures with cash on hand.

The contribution margin =

Unit Margin (Profit) = Unit Revenue - Unit Variable Cost (Marginal Cost)

<h3>What is the bundle prices and Net Profit?</h3>

For Hydration Power Drink:

High 7 -1 = 6

Low: 6 - 1 = 5

Total = 11

For Satisfying Smoothie:

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Low: 5-4 = 1

Total  = 7

High Bundle Price for both products:
6 + 6 = 12

Low Bundle price for both products:
5 + 1 = 6

From the above information, it is clear that the Bundle Price that will maximize profit is the High Bundle Price.

The product that will yield the most profit is: The Hydration Power Drink.

Learn more about bundle price:
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7 0
1 year ago
Anheuser-Busch InBev Companies, Inc., reported the following operating information for a recent year (in millions of dollars): N
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Answer:

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b) Breakeven = 8,014,162,500 units

Explanation:

calculations are in millions

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selling price per unit = $47063/400 = $117.66

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Breakeven = $20566.50/$42.80 = 480.5 units

b) calculations

fixed costs = 20,566,500 + 300,000,000

                 = 320,566,500

break even = $320,566,500 /0.04

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The State of Alabama Board of Tourism ran a series of ads showing traditional families enjoying various attractions in the state
horrorfan [7]

Answer:

B) demographic

Explanation:

Demographic segmentation refers to defining (or segmenting) a specific target market based on demographic variables such as gender, age, income, family status, marital status, education, ethnicity, religion, etc.

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