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Lisa [10]
3 years ago
10

An index model regression applied to past monthly returns in Ford’s stock price produces the following estimates, which are beli

eved to be stable over time: rF = 0.1% + 1.1rM If the market index subsequently rises by 10.2% and Ford’s stock price rises by 10%, what is the abnormal change in Ford’s stock price? (Negative value should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.)Abnormal return ____ %
Business
1 answer:
Neko [114]3 years ago
7 0

Answer:

(1.32%)

Explanation:

The computation of the abnormal change in Ford’s stock price is shown below:

Given that

rF = 0.1% + 1.1rM

If the market index rises by 10.2%

So, now the equation is

= 0.1% + 1.1 × 10.2%

= 0.1% + 11.22%

= 11.32%

And, the stock price rises by 10%

So, now the abnormal change in Ford stock price is

= 10% - 11.32%

= (1.32%)

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Answer:

B) all factors affecting demand, except income

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Ceteris paribus can be used to identify the relationship between two specific variables, while leaving all other factors constant. In this case, since Jeremy is studying the effects of income on the demand (of anything really, not only Greek ceramics), it should affect all factors affecting demand except income. Jeremy is going to analyze how the quantity demanded changes when the income changes, all other things constant.

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4 years ago
Bass Clef Music Company assigns workers to departments based on similar skills. Currently, the company has a marketing departmen
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Explanation:

The Bass Clef Music Company has formed departments by function they perform, such as; the marketing, production, finance etc. The function a department plays in an organization is the specific problem that department helps the organization to solve or the specific role that department carries out in the organization.

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4 years ago
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Exotic Engine Shop uses a job order cost system to determine the cost of performing engine repair work. Estimated costs and expe
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3 0
3 years ago
The actual cost of direct materials is​ $13.00 per pound. The standard cost per pound is​ $8.75. During the current​ period, 9,9
dlinn [17]

Answer:

A. ​$55,125 favorable

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Actual quantity used in production = 9,900 pounds

Standard quantity for actual units produced =​ 16,200 pounds

Standard cost per pound =$8.75.

The direct materials quantity​ variance is:

DMQV = (16,200 - 9,900)*\$8.75\\DMQV=\$55,125

Since the company used a lesser quantity than the expected (standard) quantity, the balance is favorable.

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4 0
4 years ago
On January 1, 2020, Swifty Corporation granted an employee an option to purchase 15000 shares of Swifty's $5 par value common st
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Answer:

For 2021, should recognize compensation expense under the fair value method of $170,500

Explanation:

According to the given data we have the following:

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Also, The option became exercisable on December 31, 2021, after the employee completed two years of service.

Therefore, in order to calculate the amount should recognize compensation expense we would have to make the following calculation:

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For 2021, should recognize compensation expense under the fair value method of $170,500

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