______________________: Bringing goods or services into one country from another.

We would like to invest $10,000 into shares of companies XX and YY.

garri49 [273]

Answer:

c. $5,000 into each company

Explanation:

Let X be the actual (random) return from each share of XX, and Y be the actual return from each share of YY. Computing the returns from each option:

A) Investing $10,000 into XX

Given that variance = (standard deviation)²

Since XX cost $20 per share, only 500 shares can be bought.

Expected value = 500 * E(x) = 500 * 1 = 500

Variance = 500² * Var(x) = 500² * 0.5² = 62500

B) Investing $10,000 into YY

Since YY cost $50 per share, only 200 shares can be bought.

Expected value = 200 * E(y) = 200 * 2.5 = 500

Variance = 200² * Var(y) = 200² * 1² = 40000

C) Investing $5,000 into each company

Since XX cost $20 per share and YY cost $50 per share, only 250 shares of XX and 100 shares of YY can be bought.

Expected value = 250 * E(x) + 100 * E(y) = 250 * 1 + 100 * 2.5 = 500

Variance = 250² * Var(x) + 100² * Var(y) = 250² * 0.5² + 100² * 1 = 25625

Since all options have the same expected return, but option C has the lowest variance hence it is the least riskiest. So the best option is C

5 0

3 years ago

The head of accounting at delores inc. is computing a value that represents the company's financial performance for the previous

Nesterboy [21]

In this scenario, the mean as a measure of central tendency will be least effective as an accurate representation of financial performance.
The mean is a measure of central tendency that is the average for a sample.
In this specific case the mean is not effective measure because there is a huge difference in the financial performance in the last month compared to the previous months.So the mean would not give the real picture.

5 0

3 years ago

The fund has not borrowed any funds, but its accrued management fee with the portfolio manager currently totals $25,000. There a

kvv77 [185]

Answer:

$9.79

Explanation:

The computation of the net asset value of the fund is shown below:

Net asset value of the fund = Equity ÷ Total outstanding shares

where,

Equity

= Total assets - total liabilities

where,

Total assets equal to

= 220,000 shares × $35 + 320,000 shares × $40 + 420,000 shares × $15 + 620,000 shares × $20

= $7,700,000 + $12,800,000 + $6,300,000 + $12,400,000

= $39,200,000

And, liabilities is $25,000

So, the net asset value of the fund equal to

= ($39,200,000 - $25,000) ÷ (4,000,000 shares)

= $9.79

7 0

3 years ago

inflation can be measured by the a. percentage change in the price of a specific commodity. b. percentage change in the consumer

Brut [27]

Answer:

b. percentage change in the consumer price index.

Explanation:

Inflation is the increase in the price of a commodity, it is expressed as a percent change in the price of an item. We can calculate the inflation using percentage change in consumer price index.

Consumer price index measure the percentage of change in the price of a market basket of consumer goods and services.

6 0

3 years ago

On January 1, 2018, the Cook's Restaurant decides to invest in Lake Topsey bonds. The bonds mature on December 31, 2021, an

charle [14.2K]

Answer and Explanation:

The Journal Entry is shown below:-

Investment in bonds is at face value, no question about discount or premium.

Investment is rendered from the time the bonds mature before 2023. Hence, it is an investment as Working for Profit "Held until maturity"

Jan 1, 2018

Bonds receivables Dr, $140,000

To Cash $140,000

(Being Investment in bonds is recorded)

30 June 2018

Cash Dr, $2,400

To interest income $2,400

(Being six months interest received is recorded)

31 Dec 2018

3. Cash Dr, $2,400

To interest income $2,400

(Being six months interest received is recorded)

Working note:-

Bond Value $140,000

Interest rate 4%

Interest earned half

yearly, effective rate

(4% × 6 ÷ 12) 2%

Half Yearly interest amount

($140,000 × 2%) $2,800

3 0

3 years ago