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frutty [35]
3 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]3 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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The market size and market growth rates in the foreign market can be influenced negatively by:______.A. population sizes, income
Nikitich [7]

Answer:

A. population sizes, income levels and cultural influences, the current state of the infrastructure and distribution and retail networks available.

Explanation:

The reason is that the foreign markets are affected by the cultural differences for example if US clothing brand enters Suadia Arabia then it can not sell its brands here because in the Suadia Arabian culture girls wear full sleeves and are not skin tight fits. This means that the culture have an influence over the foreign markets. Likewise the income level tells about how much the customer can spend on luxury items, population of customers available is also an attractive part that the investors see to move in the markets. The infrastructure of a country and the regional importance of the state are also the motivators for the foreign companies to move in to the market.

These factors are the ecosystem of the country that gives insight of the market size and market growth of a particular market.

8 0
3 years ago
Dave mentions that insurance is the defense for managing your money. Why is this true?.
777dan777 [17]

Insurance is a method of defense when it comes to managing your money according to Dave because it prevents you from incurring more debt.

<h3>How does insurance defend your money?</h3>

According to Dave Ramsey, a defense method in managing your money is one that helps you reduce or avoid debt.

Insurance is therefore a defense for managing your money because it saves you from having to incur debt when you pass through a dangerous situation because the insurance will pay out instead of you having to borrow.

Find out more on the purpose of insurance at brainly.com/question/1941778.

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8 0
2 years ago
Express the following comparative income statements in common-size percents. (Round your percentage answers to 1 decimal place.)
Mila [183]

Answer: Cost of Goods sold

Explanation:

Common size analysis refers to making all entries in the income statement, a percentage of sales for that year.

Current Year                                                      Prior Year

Sales                                      100%                           100%

Cost of Goods sold               75.7%                          46.5%

Gross Profit                            24.3%                          53.5%

Operating expenses             17.3%                             35%

Net Income                              7.0%                            18.5%

<em>Looking at the percentages above, one can see that the COGS increased the most from the previous year by going from 46.5% to 75.7% representing an increase of 29.2%.</em>

<em>This had the most impact on Net income as it substantially reduced Gross profit. </em>

8 0
3 years ago
HELP ASAP FOR BRAINLIEST ****
Mrac [35]
Okay well I got you.
The first answer is: When unemployment is low, businesses have to compete  more for workers, forcing wages up. Higher wages increases labor costs.
The second answer is: As inflation accelerates, workers may supply labor in the short term because of higher wages- leading to a decline in the unemployment rate.
The third answer is: I don't know this one sorry :(
The fourth answer is: I don't know this one either.
Sorry i wasn't much help...:(
7 0
3 years ago
Donny owns and leases a coal mine to brian. the lease agreement states that brian will pay donny $4 per ton royalty on coal mine
Gnoma [55]

Answer: $25,000

Explanation:

Given Data:

Gross income from coal = $250,000

Income from trucking coal = $20,000

Royalty paid to Donny = $30,000

Taxable income on call excluding depletion = $40,000

Coal depletion rate = 10%

Lease agreement = $4/ton

Therefore:

brian's percentage depletion deduction for the current year is

= gross income x coal depletion rate

= $250,000 x 0.1

=$25,000

5 0
2 years ago
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