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bazaltina [42]
3 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]3 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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Considering the industrial context, the reasons some firms, industries, and cultures have different CSR thresholds than others include <u>differences in stages of </u><u>acceptance</u><u> </u><u>among</u><u> </u><u>firms</u><u>.</u>

Some other reasons some firms, industries, and cultures have different CSR thresholds than others include the following:

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CSR is the Corporate Social Responsibility in which the private firms seek to contribute to the society in which they operate through charity, philanthropic, and volunteering programs, amongst others.

Hence, in this case, it is concluded that there are various reasons why some firms, industries, and cultures have different CSR thresholds than others.

Learn more about CSR thresholds here: brainly.com/question/15318875

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Fillkart, an online shopping Web site, needs to share data for purchase orders, invoices, and payments along with information ab
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Answer:

d. Enterprise resource planning.

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7 0
3 years ago
A perfectly competitive firm will maximize profit or minimize losses in the short run by producing at the point where:
Marina CMI [18]

Answer:

The correct answer is option C.

Explanation:

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The firm is able to maximize profits or minimize loss at the point where the marginal cost is equal to the price or marginal revenue and the price is such that the average fixed cost is being covered.  

In the short run, some costs are fixed while others are variables, a firm is able to minimize losses if the price is greater than AFC. But in the long run, all costs are variable so price should be either higher than or equal to ATC to maximize profits and minimize losses.

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Answer:

conflict caused by the hardware store adopting "scrambled merchandising" marketing.

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Scrambled merchandising occurs when a shop sells a good that is not the usual type of products it sells. A store owner may adopt scrambled merchandising to utilise unused space or to increase bottom line.

When a store owner sells many unrelated goods it gives the buyer the impression that the seller does not specialise in a particular type of product.

The conflict in this case arises through scrambled merchandising. A hardware store starts to sell ice cream like our own business.

6 0
3 years ago
Production and sales estimates for May for Cardinal Co. are as follows: Estimated inventory (units), May 1 19,500 Desired invent
mel-nik [20]

Answer:

a.21,000

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The computation of the number of units expected to be sold in the month of  May is shown below:

= Expected sales volume in units in Area X +  Expected sales volume in units in Area Y + Expected sales volume in units in Area Z

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We simply added these three sales volume in unit so that the expected number of unit sold could come

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