Answer:
a. What is the average annual return?
average annual return (mean) = (-4.5% + 28.1% + 12.2% + 3.7%) / 4 = 9.875%
b. What is the variance of the stock's returns?
variance = [(-4.5% - 9.875%)² + (28.1% - 9.875%)² + (12.2% - 9.875%)²) + (3.7% - 9.875%)²] / 4 = (206.64 + 332.15 + 5.41 + 38.13) / 4 = 582.33 / 4 = 145.5825
c. What is the standard deviation of the stock's returns?
standard deviation = √145.5825 = 12.06%
Answer:
16.16%
Explanation:
The formula to compute the expected rate of return is shown below:
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Expected rate of return = (Weightage of Stock G × Expected Returns G) + (Weightage of Stock J × Expected Returns J) + (Weightage of Stock K × Expected Returns K)
= (16% × 10%) + (56% × 16%) + (28% × 20%)
= (0.16 × 0.1) + (0.56 × 0.16) + (0.28 × 0.20)
= 0.016 + 0.0896 + 0.056
= 0.1616
= 16.16%
Answer:
a. A 1% increase is a positive output gap decreases the unemployment rate by 0.5%
Explanation:
Okuns law looked at the relationship between unemployment and output empirically.
It states that that for every 1% increase in the unemployment rate, positive output gap falls by roughly 2%.
I hope my answer helps you.
A free economy has a 100% open economy with very little government interaction however a mixed economy is open to the public but is semi-closely regulated by the government.
Answer:
Salary and Commission compensation benefit has its pros and cons. However, The Company that adopts Salary Compensation benefit might be making a mistake.
Explanation:
If you pay salesmen a straight salary, some may have limited motivation to exceed basic expectations. However, commission based remuneration is pro performance in that drive salesmen to set more aggressive goals, work through obstacles and rejection to meet their target for a particular period.
Businesses that pay fixed salaries incur higher overhead costs because you have to pay whether you are making profits or not. But the case is different in Commission based compensation benefit where the risk is shared and commission is only paid when money is made.
