Answer:
SD = 0.0740270 or 7.40270 percent rounded off to 7.403 percent
Explanation:
To calculate the standard deviation of the investment, we must first calculate the expected or mean return of the investment. The expected or mean return can be calculated as follows,
r = pA * rA + pB * rB + ... + pN * rN
Where,
- pA, pB, ... represents the probability of state occurrence
- rA, rB, ... represents return A, return B and so on under each state
r = 0.2 * 0.16 + 0.4 * 0.12 + 0.2 * 0.05 + 0.2 * -0.05
r = 0.08 or 8%
The formula to calculate the standard deviation of a stock/investment is as follows,
SD = √pA * (rA - r)² + pB * (rB - r)² + ... + pN * (rN - r)²
SD = √0.2 * (0.16 - 0.08)² + 0.4 * (0.12 - 0.08)² + 0.2 * (0.05 - 0.08)² + 0.2 * (-0.05 - 0.08)²
SD = 0.0740270 or 7.40270 percent rounded off to 7.403 percent
The answer for this question is True
The original data is :
Data for Hermann Corporation
Per unit Percent of sales
Selling price $ 75 100%
Variable expenses 51 68
Contribution margin $ 24 32%
The fixed expenses are $ 75,000 per month and the company is selling 4000 units per month.
Solution :
Present Proposed
Sales 300000 375000
Less : Variable cost 204000 275000
Contribution margin 96000 100000
Less : Fixed expenses <u> 75000 </u> <u> 75000 </u>
Net income 21000 25000
The net operating income : Increases 4000
Net operating income = increased sales Net income - current sales net income.
Therefore the higher quality component should be used.
Answer:
Endless supply of business, the business must pay the representative for unused paid downtime, including get-away, wiped out leave, and individual days. The government Family and Medical Leave Act enables qualified workers to take as long as 12 weeks of unpaid leave in specific situations.
Answer:
$5,603
Explanation:
The calculation of Interest Expense is shown below:-
Interest made accrued on Dec 31, 2018 = Services issued × Stated rate × Remaining months ÷ Number of Months in a year
= $305,000 × 11% × 2 ÷ 12
= $305,000 × 11% × 0.167
= $5,603
Therefore for computing the Interest Expense we simply applied the above formula.
