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Nana76 [90]
3 years ago
11

An investor will choose between Asset Q with an expected return of 6.5% and a standard deviation of 5.5%, Asset U with an expect

ed return of 8.8% and a standard deviation of 5.5%, and Asset B with an expected return of 8.8% and a standard deviation of 6.5%. Which one should the investor prefer?A. Asset B B. Cannot be determined C. Asset Q D. Asset U
Business
1 answer:
Alexxx [7]3 years ago
7 0

Answer:

The investor will prefer asset U. So the correct answer is option D

Explanation:

To choose between these stocks, we will calculate the coefficient of variation (CV) which is used to assess the risk per unit of expected return. As most people are risk averse, we assume that the investor is risk averse. We will calculate the CV for all three investments and the stock having lowest CV will be selected.

<u>Coefficient of Variation (CV)</u>

Coefficient of Variation =  standard deviation / expected return

<u />

Asset Q = 5.5% / 6.5% = 0.846

Asset U = 5.5% / 8.8% = 0.625

Asset B = 6.5% / 8.8% = 0.738

Thus, asset U has the lowest CV and the investor =, being a risk averse, will prefer asset U.

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Answer:

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Based on the information given about Zeke who is the employer , Gavin the employee and the formal employee who was dismissed The statement that would prove that Zeke the employer made a faulty decision is that Both an employee and the former or ex employee can raised a grievance reason been that settling dispute due to Grievance at a place of work can only take place with a current employee and not a formal employee , ex employee or a dismissed employee.

Therefore resolving Grievance at a place of work often take place with an employee with in the work environment and not with a formal employee.

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3 years ago
The team members of the technical team in Wescrult Inc. are working on a crucial project. Their previous manager assigned respon
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In the given case, Wendy is monitoring the tasks performed by others and is also taking corrective actions. Thus, we can conclude that wendy is  performing controlling function.

3 0
3 years ago
The two most common forms of primary research are​ ________.
cricket20 [7]
Surveys and Interviews. Hope this helps
8 0
3 years ago
Select the correct answer.
Mademuasel [1]

Answer:

C.earning college credits in high school.

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The other answers are all negative and in the question it says ''a benefit''.

Hope this helps! Please mark brainliest!

3 0
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Answer:  If the fee has not been paid by the end of the accounting period and no adjusting entry is made, this would cause: "d. revenues to be understated.".

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