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frutty [35]
4 years ago
15

QUESTION 01 (10 points) ‐ Coefficient of Variation (CV) We need to compare volatility of multiple assets. As the assets have dif

ferent variation ranges, e.g. a big stock versus a penny stock, it is useful to look at the coefficient of variation, not the standard deviation, as a measure of volatility. We have the following population data:
Asset A Asset B Asset C
Mean ($) 181.92 0.38 247.19
Standard deviation ($) 23.48 0.09 27.31

(a) Give an equation for the coefficient of variation in percentage terms.
(b) Find volatility of the three assets. Use two decimals for percentages, e.g. 23.76%.
(c) Which asset is the least volatile? Which asset is the most volatile?
Business
1 answer:
barxatty [35]4 years ago
4 0

Answer:

a, Coefficient of variation

   = <u>Standard deviation</u> x 100

          Mean

b, Coefficient of variation

  Asset A

   Coefficient of variation

   = <u>$23.48</u>   x 100

      $181.92

  = 12.91%

   Asset B

  Coefficient of variation

  = <u>$0.09</u> x 100

     $0.38

 = 23.68%

  Asset C

   Coefficient of variation

  = <u>$27.31 </u>  x 100

     $247.19

  = 11.05%

Asset C is least volatile while Asset B is most volatile

Explanation:

Coefficient of variation is the ratio of standard deviation to mean (expected return) multiplied by 100. It is used to measure the volatility of assets. Asset  C has the least coefficient of variation, thus, it is the least volatile. Asset B has the highest coefficient of variation, which implies that it is the most volatile.

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Answer:

NPV = $40,952.46

Explanation:

Net present value is the present value of after tax cash flows from an investment less the amount invested.

NPV can be calculated using a financial calculator

Cash flow in year 0 = $-28,000

Cash flow in year 1 to 3 = $32,500 - $2,800 = $29,700

I =14%

NPV = $40,952.46

To find the NPV using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

I hope my answer helps you

6 0
4 years ago
The way a product is delivered is determined by:Consumers in highly developed countries value _____ as compared to their counter
ss7ja [257]

Answer:

The correct answer to the following question is Product attributes.

Explanation:

Product attributes can be defined as the characteristics or features of a particular product that helps in defining what the product is and these attributes have a influence on the consumer's buying decision. Such attributes can be both tangible and intangible, where in tangible it can be color, weight, size, quantity of the product and on the other hand in the intangible attributes it can be quality, price , reliability of the product. In the developed nations people value such attributes more than in other developing nations.

3 0
4 years ago
A family spends $40,000 on living expenses. With an annual inflation rate of 6 percent, they can expect to spend approximately _
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Answer: $42,400

Explanation:

The family currently spends $40,000 on living expenses.

Inflation is expected to be 6% and as Inflation is used to refer to the general rise in prices, this means that the family will be spending 6% more in one year.

They will therefore be spending;

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4 years ago
The balance sheet shows the following accounts and amounts Inventory. $84,000, Long-term Debt 125.000; Common Stock $60,000; Acc
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Long-term Debt = $125.000;

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Short-term Debt $48.000:

Accounts Receivable $109,000,

Retained Earnings $204,000 Notes Payable $54.000:

Accumulated Depreciation $180.000

Total current asset = $84,000 + $132,000 + $109,000

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5 0
3 years ago
explain why it is not encouraged to rely on estimates of the intercept or constant when making economic analysis​
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It is not encouraged to rely on estimates of the intercept when a person is making analysis because intercept is the mean of variable Y when all predictors have become zero.

<h3>What is economic analysis?</h3>

This is the term that is used to refer to the analysis that is done with the given data that has been established in a statistical test. The economic analysis helps to make the predictions that would be used to bring about new policies in government.

Economic analysis is not done with the the intercept because it would require all the other predictor variables to have zero value hence their impact cannot be seen.

Read more on economic analysis here: brainly.com/question/14300080

#SPJ1

8 0
2 years ago
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