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34kurt
3 years ago
10

The tighter the probability distribution of its expected future returns, the greater the risk of a given investment as measured

by its standard deviation.
a. true
b. false
Business
2 answers:
melisa1 [442]3 years ago
8 0
True..............................
nydimaria [60]3 years ago
4 0
This is False.  When its tighter, the probability distribution is commonly found to give you the expected results more. This causes less risk, a smaller standard deviation.  
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Calculate the opportunity cost of capital for a firm with the following capital structure: 30% preferred stock, 50% common stock
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Answer:

11.21%

Explanation:

the opportunity cost of capital can be determined by calculating the weighted average cost of capital

WACC = [weight of equity x cost of equity[ + [weight of debt x cost of debt x (1 - tax rate)] + [weight of preferred stock x cost of preferred stock]

0.3 x 10.76 + (0.5 x 13.91) + (0.2 x 0.65 x 7,87)

3.228 + 6.955 + 1.231

11.21%

5 0
3 years ago
Hsu Company reported the following on its income statement: Income before income taxes $302,634 Income tax expense 90,790 Net in
7nadin3 [17]

Answer:

5.79  times

Explanation:

The times interest earned ratio tells us the number of times the company's made earnings in multiple of its debt interest obligation.

The formula for times earned interest ratio is the income before interest and taxes divided by the interest expense.

income before tax is $302,634

income before interest and taxes= $302,634+$63,228=$365,862.00  

times interest earned ratio=$365,862.00/ $63,228= 5.79  times

8 0
4 years ago
Which of the following statement is not true about derivative contracts?
8090 [49]

Answer:

a. A long position is a bet that the number is going to fall while a short position is a bet that the number will rise in the future.

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So according to the given options, the option a is correct as long position is a bet in which the number is to be decline while on the other hand in the short position the number would increase

4 0
3 years ago
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The basis of competition is freedom of choice exercised in the pursuit of money.

<h3>What is competition?</h3>

Competition is a scenario where different economic firms are in contention to obtain goods that are limited by varying the elements.

The purpose of competition is for businesses to try to outdo each other in order to earn more.

Also, competition enable businesses come up with newer ways to please their customers, hence come up with amazing innovative ideas and better products.

Hence, the basis of competition is freedom of choice exercised in the pursuit of money.

Learn more about economic competition here : brainly.com/question/967467

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3 years ago
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The data iuse
<span>use a 5% level of significance. Very yes</span>
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3 years ago
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