1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Firlakuza [10]
3 years ago
6

Three months ago, you purchased a stock for $54.14. The stock is currently priced at $57.36. What is the EAR on your investment?

Business
1 answer:
Crazy boy [7]3 years ago
5 0

Answer:

The EAR on the investment is 23.79%

Explanation:

Here, we are concerned with calculating the EAR on the stock investment.

Firstly, we start with calculating the return on shares

Mathematically, that is; P1 - P0

From the question P1 = $57.36 while P0 = $54.14

So Return on shares = $57.36-$54.14 = $3.22

We proceed with calculating the Return on shares in percentage

Mathematically;

Return on shares in % = Return on shares/P0 * 100

= 3.22/54.14 * 100 = 5.95%

Lastly we calculate the effective annual interest;

The effective annual interest = 5.95%/3 * 12 = 23.79%

You might be interested in
Treasury bills are paying a 4% rate of return. A risk-averse investor with a risk aversion of A = 3 should invest entirely in a
Tomtit [17]

Answer:

Answer is 12.64%. Therefore,

Treasury bills are paying a 4% rate of return. A risk-averse investor with a risk aversion of A = 3 should invest entirely in a risky portfolio with a standard deviation of 24% only if the risky portfolio's expected return is at least 12.64%.

Refer below for the explanation.

Explanation:

E - 4%= 0.5(3)(24%)2

E=12.64%

7 0
3 years ago
Read 2 more answers
Which inventory costing method results in the lowest net income during a period of rising inventory​ costs?.
scoray [572]

Due to the greatest cost of goods sold, the LIFO (Last In Last Out) technique displays the lowest net profitability. Compared to the other techniques of inventory valuation, the cost of goods sold for the LIFO approach is the greatest.

<h3>Which technique of inventory valuation will result in the lowest net profit?</h3>

The application of LIFO will produce the lowest net income and the greatest estimated cost of goods sold among the three options during periods of inflation.

<h3>Which method of inventory has the lowest income tax rate?</h3>

LIFO is the inventory cost flow method that yields the lowest income tax liability. A form of inventory cost flow mechanism called last-in-first-out (LIFO) operates under the presumption that the last item acquired will be the first item to be sold.

<h3>In an era of inflation, which inventory method results in the lowest income tax?</h3>

Due to increasing COGS, LIFO leads to reduced net income (and taxes). However, under LIFO during inflation, there are fewer inventory write-downs. Results from average cost are in the middle of FIFO and LIFO.

To Know more about techniques

brainly.com/question/13655064

#SPJ4

7 0
1 year ago
Which of the following is a general two-year college-level degree?
inysia [295]

Answer:

an associate's degree

Explanation:

An associate's degree is an undergraduate, two-year degree program. The associate degree transposes into the first two years of a bachelor's degree. It intends to equip students with the necessary technical skills and academic knowledge required in the workplace. An associate degree prepares a student for further study in their chosen field.

A bachelor's degree takes four years, while a master's degree requires getting a bachelor's degree first.

8 0
3 years ago
Read 2 more answers
Trey, Inc. reports a taxable loss of $140,000 for 2018. Its taxable incomes for the years 2015 through 2017 respectively were $2
laiz [17]

Answer:

$117500

Explanation:

Taxable loss = $140000 for 2018

Taxable incomes : $25000 for 2015, $35000 for 2016, $40000 for 2017

tax rate = 30%

Net loss on 2018 income statement can be offset by the taxes paid on taxable income for 2 years prior to 2018 ( i.e 2016 and 2017 )

first calculate taxes on taxable incomes for 2016 and 2017

$35000 * 30% = $10500

$40000 * 30% = $12000

hence taxable profit = 10500 + 12000 = $22500

Net loss to be reported on 2018 income statement

= $140000 - $22500 = $117500

8 0
3 years ago
A financial services firm routinely processes a large volume of account change requests. A Lean Six Sigma team wants to understa
Harrizon [31]

Answer:

E) 1920

Explanation:

The computation of  the maximum items in process is shown below:

=  Number of maximum target cycle time ×  normal processing rate per minute × number of minutes in one hour

= 16 hours × 2 × 60 minutes

= 1,920

Simple we multiply the all items which are given in the question, so that the accurate value can come i.e maximum target cycle time, normal processing rate per minute and the number of minutes in one hour

3 0
3 years ago
Other questions:
  • Capri Realty is the exclusive representative of Verde Ridge subdivision. Capri sales staff will temporarily work out of a model
    12·1 answer
  • The laws passed by Congress and by state legislatures are called:
    12·2 answers
  • Creating and distributing __________ is one of the most widespread types of cyber crime.
    7·1 answer
  • Suppose selected comparative statement data for the giant bookseller Barnes &amp; Noble are presented here. All balance sheet da
    15·1 answer
  • Marta is CEO of a large financial company. She is always open to the opinions of her employees and tries to make a decision base
    14·1 answer
  • Minden Company introduced a new product last year for which it is trying to find an optimal selling price. Marketing studies sug
    15·1 answer
  • ABC Limited manufactures high quality copper pots and pans.
    8·1 answer
  • The 2017 balance sheet of Kerber's Tennis Shop, Inc., showed long-term debt of $6.4 million, and the 2018 balance sheet showed l
    13·1 answer
  • Beneficiary election for a taxable account is ___________________ at account opening and it is formally called _________________
    12·1 answer
  • as firms progress through the stages of becoming more internationalised and increase their international activities, their ihrm
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!