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Eva8 [605]
3 years ago
10

Stock A has an expected return of 15 percent and the standard deviation of its returns is 20 percent. Stock B has an expected re

turn of 10 percent and the standard deviation of its returns is 30 percent. Which stock would the risk averse investor choose to purchase?
Business
1 answer:
kiruha [24]3 years ago
4 0

Answer:

Stock A will be preferable for the risk averse Investors.

Explanation:

The reason is that risk is the measure of the vulnerability of the returns on the investment made which means if the return on the investment has greater vulnerability of returns then it is highly risky. So the risk averse investor would prefer stock A with lower risk.

(Special comments:

It must be noted that the higher return shows that the investment is also highly risky because nobody is going to give you more with low risk associated investments. This means lower return on Stock B is also preferable here for the risk averse investor because it carries lower risks.)

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In the company's accounting system all fixed expenses of the company are fully allocated to products. Further investigation has
PSYCHO15rus [73]

Answer:

= $132,000.

Explanation:

There are two types of fixed costs, general fixed cost and specific fixed cost.

<u><em>General fixed costs </em></u><em>are those that cannot be traced to a specific product rather they are incurred for the benefit of all of the product being produced. For example,the rent of the factory where three products are being produced</em>

So they are unavoidable should a product be ceased for production that is they would still be incurred either way.

<u>S</u><u><em>pecific fixed costs </em></u><em>are those incurred specifically for a particular product and as such they would be saved should the product be discontinued. For example , if a special machine  that cost $4000 a month to rent is used to produce a product. The $4000 would be saved should the production of the product ceases</em>

The net operating cost of the company would increase by the amount of the avoidable specific fixed cost:

=$90,000 + $42,000

= $132,000.

3 0
3 years ago
Suppose the given supply and demand tables reflect the supply and demand for milk per week. At a price of $1, there is a:Price(p
Musya8 [376]

Answer:

B. shortage of 1,000 gallons per week

Explanation:

Price = $1

Quantity demanded = 2,000

Quantity supplied = 1,000

Shortage = Quantity demanded - Quantity supplied

= 2,000 -1,000

= 1,000 gallons per week

Therefore, As per question Quantity demand that is 2,000 and quantity supplied that is 1,000. So, in this given case the Quantity demand is more than the quantity supplied.

Hence, there is shortage of 1,000 gallons per week.

5 0
3 years ago
Which term describes the situation wherein a jury fails to reach a unanimous verdict?
mojhsa [17]
Hung jury is the answer
hope it helps
6 0
3 years ago
After Mario completes his monthly report, his boss reviews it to see if the standards were met. If there are errors, Mario is to
iren [92.7K]

Answer: Active management by exception

Explanation:

Active management-by-exception is an active transactional leadership behavior whereby the leader looks out for what has been done wrong by his or her subordinates.

Such leaders monitors the work performance and look out for the mistakes and then corrects the situation by taking a particular action.

Since Mario'd boss reviews his monthly reports to see if the standards were met and that if there are errors, Mario is told he has to work an extra hour each day for the next two weeks. It is an example of Active management by exception

5 0
2 years ago
Which of the following companies is an example of a manufacturer? a. H&amp;R Block b. Best Buy c. Intel d. Trism e. Walmart
Otrada [13]

Answer: Intel.

Explanation:

A manufacturer is a company that makes finished or semi-finished goods for sale from raw materials. Intel produces various chips and microprocessors used in making most computers in the market.

7 0
3 years ago
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