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sveticcg [70]
3 years ago
10

The stock ABC has a beta of 1.6 and its standard deviation is 30%. Its correlation coefficient with the market return is 0.8. Wh

at is the standard deviation of the market return? A. None of the answers is correct B. 18% C. 20% D. 15%
Business
1 answer:
andrew-mc [135]3 years ago
4 0

Answer: D. 15%

Explanation:

Beta is given as 1.6 but is calculable by the formula;

Beta = Correlation Coefficient of stock with market returns * \frac{Standard Deviation of stock returns}{Standard Deviation of market returns}

1.6 = 0.8 * 30%/Sdm

30% /Sdm = 1.6/0.8

30% / Sdm = 2

Sdm * 2 =30%

Sdm = 30%/2

Sdm = 15%

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Each unit of a product requires 5 components. The average number of components is 5.50 due to component failure. Purchasing high
Evgesh-ka [11]

Answer:

correct option is d. $225

Explanation:

given data

product requires  = 5 component

average number of components = 5.50

reduce average number of components = 5 per unit

cost per component = $450

solution

we get here reduction in failure costs per unit due to purchasing that is express as

reduction in failure costs per unit due to purchasing = ( average number of components - product requires ) ×  cost per component   .......................1

put here value and we get

reduction in failure costs per unit due to purchasing = ( 5.50 - 5 ) × $450

reduction in failure costs per unit due to purchasing = $225

so correct option is d. $225

4 0
3 years ago
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Answer:

C) $21,080

Explanation:

The computation of the net operating income is given below:

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Sales                                                  $114                   $1,128,600

Less: Variable expenses:

Raw material cost (6 pounds for $4)  $24              $237,600

Direct labor cost (2.4 hours for $24)  $58             $570,240

Manufacturing overheads (2.4 hours for $9)  $22  $213,840

Variable selling and admin expenses  $2              $15,840

Contribution margin              $9                           $91,080

Less: Fixed Selling and admin exp                  $70,000

Net operating income                                     $21,080

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4 years ago
How to calculate for opening bank balance​
nignag [31]

Answer:

The opening balance is the amount of money that is available in the bank at the beginning of each financial period, such as the start of each month or each year. It is the amount brought forward and first figure entered in the account at the beginning of each period. When the amount is newly opened, the opening balance is the first amount entered in the account

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Closing Balance = The Opening Balance + Total Income - Total Expense

Therefore;

<em>The Opening Balance = Closing Balance - Total Income + Total Expense</em>

Explanation:

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Explanation:

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There is also strict government control in companies in Islamic countries, which obliges them to follow certain religious laws and regulations, which prevents them from managing an organization more aggressively with regard to paying interest and establishing a culture geared towards receiving "fair" profits, while business in the United States survives without obligation to comply with religious laws or impede profit.

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