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gizmo_the_mogwai [7]
4 years ago
5

You have the following data on three stocks: Stock Standard Deviation Beta A 20% 1.59 B 30% 1.71 C 25% 1.29 If you are a strict

risk minimizer, you would choose Stock ____ if it is to be held in isolation and Stock ____ if it is to be held as part of a well-diversified portfolio. A; A. A; B. B; A. A; C. C; B.
Business
1 answer:
finlep [7]4 years ago
5 0

Answer:

B;A

Explanation:

You have the following data on three stocks: Stock Standard Deviation Beta A 20% 1.59 B 30% 1.71 C 25% 1.29 If you are a strict risk minimizer, you would choose Stock B if it is to be held in isolation and Stock A if it is to be held as part of a well-diversified portfolio.

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If an air parcel is given a small push upward and it continues to move upward on its own accord, the atmosphere is said to be?
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The relative humidity reaches a hundred percent determined whilst the air parcel temperature cools all the way down to its authentic dew point temperature, similarly lifting and cooling results in internet condensation, forming a cloud at the environmental lapse rate.

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2 years ago
Why do communities resist programs to educate the public about hurricane hazards? they don't believe they have a hurricane probl
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3 0
3 years ago
A company is considering replacing an old piece of machinery, which cost $400,000 and has $175,000 of accumulated depreciation t
tamaranim1 [39]

Answer:

Company A

a. Differential Analysis dated May 29

                                              Alternative 1           Alternative 2

Opportunity cost                       $250,000            $550,000

Variable production costs          580,000                192,000

Total cost                                  $830,000             $742,000

b. Sunk cost in this situation is: $225,000 ($400,000 - $175,000) cost of the old machine.

Explanation:

Company A's relevant cost for the old machine is the opportunity cost that it will lose if it continues with Alternative 1 or continued use of the old machine and the additional cost for the new machine for Alternative 2.  Also relevant is the variable production costs that would be incurred if the old or new machine is used.

Company A's sunk cost is the cost of the old machine minus accumulated depreciation.  Sunk cost is not relevant for decision making under differential analysis.

Company A's differential analysis is a managerial tool that is used to differentiate one decision alternative from another.  In this analysis, only relevant costs are considered.  A relevant cost in this case is cost that its inclusion or elimination makes a difference in the decision outcome.

8 0
3 years ago
The Car Service Center has the design capacity to perform an average of 60 repairs per day. The effective capacity of this repai
ELEN [110]

Answer:

(36 /60 ) * 100

Explanation:

Based on the information given the capacity  utilization percentage will be :

Capacity  utilization percentage= (36 /60 ) * 100

Capacity  utilization percentage=60%

Where,

36 per day represent Actual repairs number

60 repairs per day represent Design capacity

Therefore capacity utilization percentage is (36 /60 ) * 100

7 0
3 years ago
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