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Mrrafil [7]
3 years ago
13

According to the definitions given in the text, if Stock A has a standard deviation of 4% and expected returns of 9%, and Stock

B has a standard deviation of 3% and returns of 1%, which stock is riskier?
(A) Stock A
(B) Stock B
(C) they are equally risky
(D) cannot determine from the information given
Business
1 answer:
grin007 [14]3 years ago
4 0

Answer:

(A) Stock A

Explanation:

A greater standard deviation is interpreted as a volatile stock. The price of the investment changes over time with a broad range, which is undesarible for the management of  investment portafolios. There is also a correlation between risk and estimated return, when the commercial activity related with the stock has a stable performance, is commonly secure, and that is the reason why is offered a low rate of return.

In comparision with the second option, the Stock A has a greater volatility and higher return rate.

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PIT_PIT [208]

Answer:

D. Losses result from peripheral or incidental transactions, and expenses result from ongoing major or central operations of the entity

Explanation:

The expenses represent the cash outlow or liabilities taken to carry out the activities to continue his operations.

While the Gains and Losses are incidental transactions or other events which are not controlled by the entity management. They aren't the outcome of the company's decisions. Thus, they could arise from changes in price of real state, equipment, tecnology breakthrough which means equipment obsolete and so on.

7 0
3 years ago
A marketing company wants to estimate the proportion of consumers in a certain region of the country who would react favorably t
Sindrei [870]

The closest to the minimum number of consumers needed to obtain the estimate with the desired precision is (b) 271

Explanation:

When the prior estimate of population proportion is not given , then the formula to find the sample size is given by :-

n=0.25(\frac{z^{*} }{E} )^{2}

where E = Margin of error.

z* = Critical z-value.

As per given , we have

E = 5%=0.05

Confidence level = 90%

The critical value of z at 90% is 1.645  (By z-table)

Put all values in the formula , we get

n=0.25(1.645/0.05)²

n=0.25(32.9)²

n=270.6025≈271

Thus, the minimum sample size needed = 271

Hence , the correct answer is 271 .

8 0
4 years ago
What are objectives of human resource department​
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Answer:

Objectives of HRM include ensuring availability of resources, easy access to data, on-time payroll, ensuring compliances, etc. HRM objectives are basically influenced by organisational goals and vertical. Objective of HRM is to ensure a stable work environment with data at one place and efficient operations.

4 0
3 years ago
Where is poseidon when the gods at council decide to help odysseus to return home?
alekssr [168]
During that time, poseidon was with the Ethiopians
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6 0
4 years ago
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Alexxandr [17]

Answer:  Wholesalers

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In the given case,the rues and west were producing the commodities in large quantities and are supplying it to their stores where it is further sold to retailers.

Hence they are wholesalers.

3 0
3 years ago
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