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Kazeer [188]
3 years ago
15

A stock has a geometric average return of 14.6 percent and an arithmetic average return of 15.5 percent based on the last 15 yea

rs. What is the estimated average rate of return for the next six years based on Blume's formula?
Business
1 answer:
Bad White [126]3 years ago
7 0

Answer:

15.18%

Explanation:

this problem is solved applying directly te Blume´s formula, which is the next:

R_{t}=\frac{T-1}{N-1}*GeometricAverage+\frac{N-T}{N-1} *ArithmeticAverage

where R is the return, T numbers of years to estimate and N is the observed number of years. So with given data, we have:

R_{t}=\frac{6-1}{15-1}*0.146+\frac{15-6}{15-1} *0.155

R_{t}=15.18%

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Time value An Iowa state savings bond can be converted to ​$750 at maturity 5 years from purchase. If the state bonds are to be
Elden [556K]

Answer:

$78.35

Explanation:

Given:

Future value = $750

Maturity time = 5 years

Annual rate = 5%

Now,

Future value = P × ( 1 + r )ⁿ

Where, P is the present value of the bonds

r is the rate of interest

n is number of periods

on substituting the values, we get

$100 = P × ( 1 + 5% )⁵

or

$100 = P × ( 1.05 )⁵

or

P = $78.35

Hence, the state should sell its bond at a price of $78.35

4 0
3 years ago
Angelina has again found herself frustrated at work. Her manager, for whatever reason, never makes a decision. If anything is to
hichkok12 [17]

Answer:

The correct option is E , laissez-faire

Explanation:

Option A,autocratic is not correct since the scenario painted an opposite scenario and autocratic approach to management means the manager tells the subordinates what to do.

Bureaucratic is when decision making is slow because many stakeholders are expected to jointly decide.

However,laissez-faire is an approach where subordinates are allowed to think out of the box and get tasks accomplished without manager's interference.

8 0
3 years ago
Greater resource prices _______ the costs of production, thereby, ______ the incentive for firms to produce the good at each pri
RoseWind [281]

Greater resource prices increases the costs of production, thereby,  reducing  the incentive for firms to produce the good at each price.
The total cost incurred by a business to produce a product or provide services is referred to as the cost of production. Supplies and raw materials consumed during production, as well as labour costs, are often included in production costs.

Costs of Production

All of the direct and indirect expenses firms incur when producing a good or rendering a service are referred to as production costs. Various expenditures, including labour, raw materials, consumable manufacturing supplies, and general overhead, might be included in production costs. When a company produces a good or offers a service, it incurs production expenses, which are sometimes referred to as product costs. Numerous expenses are included in these costs. For instance, manufacturing expenses for manufacturers include the cost of the labour and raw materials required to make the product. Production expenses in the service sector are related to the labour needed to implement the service and any material costs associated with providing the service.

To learn more about Costs of Production

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3 0
2 years ago
Total output of an economy can be divided into its alternative uses by considering who bought the output. when other countries p
bija089 [108]

Total output of an economy can be divided into its alternative uses by considering who bought the output. when other countries purchase part of an economy's output, this is called Gross Domestic Product [GDP],

<h3>Gross Domestic Product</h3>

The total monetary or market worth of all the finished goods and services produced within a nation's boundaries during a certain time period is known as the gross domestic product (GDP). It serves as a thorough assessment of the state of the economy in a particular nation because it is a wide indicator of total domestic production.

Although it is often calculated on a yearly basis, GDP can also be computed on a quarterly basis. For instance, the US government estimates the annualized GDP for the entire year as well as each fiscal quarter.

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6 0
2 years ago
Electricity is caused by the flow or net movement of
Mazyrski [523]
I think the answer is electrons but I am not positive, sorry if it's wrong, but i hope this helps :)
5 0
3 years ago
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