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Naily [24]
3 years ago
12

Assume you are risk-averse and have the following three choices. Expected Value Standard Deviation A $ 1,870 $ 1,520 B 2,000 840

C 1,590 710 a. Compute the coefficient of variation for each. (Round your answers to 3 decimal places.) b. Which project will you select
Business
1 answer:
Dmitriy789 [7]3 years ago
5 0

Answer:

a. The Coefficient of variation is expressed as;

= Standard Deviation/Expected return

Choice A

= 1,520/1,870

= 0.813

Choice B

= 840/2,000

= 0.42

Choice C

= 710/1,590

= 0.447

b. The coefficient of variation measures the volatility of the return of the investment. The more volatile it is, the more risky it is. A risk Averse investor would go for the one with the least Coefficient which is Choice B in this case.

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Under purchasing power parity, the future spot exchange rate is a function of the initial spot rate in equilibrium and a. the in
kirza4 [7]

Answer:

The correct answer is a) the inflation differential.

Explanation:

Inflation differential is the difference we can find between two countries in exchange rates. The inflation differential can produce losses for the company if, in the country you want to buy, there is a big difference in your exchange rate, since this raises the prices of the product. As a result, the company has a loss; it can also happen if It is a case of exports.

If the inflation differential is maintained for an extended period, it can cause loss of competitiveness, since the profit margin of the products would be affected.

<em>I hope this information can help you.</em>

6 0
4 years ago
What causes cost-push inflation
aleksandr82 [10.1K]

Answer: Cost-push inflation is caused by an increase in the prices of the underlying inputs of production.

5 0
4 years ago
Universal Containers (UC) wants its closed Won opportunities to be synced to a Data warehouse in near real time. UC has implemen
lakkis [162]

Answer:

a) The default client Certificate or the Certificate and Key Management menu.

Explanation:

The universal containers desired to ensure that the communication existing between the Target System and the Salesforce is completely safe and secured, the UC must send the Outbound Message, default client Certificate as well as the menu of the Key Management. Therefore, the correct option is option a.

3 0
3 years ago
Gains or losses on cash flow hedges are Group of answer choices ignored completely. recorded in equity, as part of other compreh
Helga [31]

Answer: The correct answer is "recorded in equity recorded in equity, as part of other comprehensive income.".

Explanation: Gains or losses on cash flow hedges are <u>recorded in equity, as part of other comprehensive income.</u>

<u>The gains or losses of a cash flow hedge must be recorded, as part of other comprehensive income, in equity.</u>

7 0
3 years ago
Which are results of regulation in a mixed-market economy? Check all that apply.
solong [7]

<u>Answer:</u> Option 1 and Option 5

<u>Explanation:</u>

In mixed economies under the government regulation most of the production is done by private ownership. There is very little government intervention. The main aim of the government intervention is to make sure that the private business activities comply with the law of the country.

Another result of government regulation is to control the externalities created by these business structures. Government ensures there is no externality which affects the market as well as the people. Due to these regulations there is no advantages for producer or government. Also the markets cannot be controlled with these regulations in mixed market economy.

8 0
4 years ago
Read 2 more answers
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