1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Arisa [49]
3 years ago
11

Given the following information, a rational investor would most likely invest in which stock? Stock A: Mean Return – 5%; Standar

d Deviation – 9% Stock B: Mean Return – 5%; Standard Deviation – 12%
Business
1 answer:
ludmilkaskok [199]3 years ago
3 0

Answer:

Stock A.

Explanation:

As the mean return is same for both stocks A and Stock B, the decision is based on standard deviation. The higher standard deviation represents the more risky investment because its prices fluctuates more. Stock A is more stable and less risky than Stock B, so a rational investor will invest in a more stable stocks.

You might be interested in
Andy Company had a cash balance on May 1 of $ 30,000. At the end of​ May, the cash balance has increased to $ 33,000. During the
PIT_PIT [208]

Answer:

The correct answer is A

Explanation:

The Cash payments for the month of may is computed as:

Cash payment = Cash balance on May 1 + Cash received  during the month - Cash balance increased

where

Cash balance on May 1 is $30,000

Cash received  during the month is $47,000

Cash balance increased  is $33,000

Putting the values above:

Cash payments = $30,000 + $47,000 - $33,000

= $77,000 - $33,000

= $44,000

4 0
3 years ago
Intro to Investing Math Quiz
olga nikolaevna [1]

As a result of having increased from a price of $55 to $85, we can say that the stock value increased by<u> 54.55%</u>

The stock was valued at $55 then it increased to $85. First thing to do is to check how much it increased by in dollar terms:

<em>= New price - old price </em>

= 85 - 55

= $30

In percentage terms, this is:

<em>= Increase/ Old price x 100%</em>

= 30 / 55 x 100%

= 54.55%

In conclusion, the stock value increased by 54.55%

<em />

<em>Find out more at brainly.com/question/10273187.</em>

4 0
3 years ago
Duke Company has net fixed assets of $400,000, short-term liabilities of $30,000, long-term liabilities of $20,000, common stock
ycow [4]

Answer:

option (b) 20

Explanation:

Data provided in the question:

Net fixed assets = $400,000

Short-term liabilities = $30,000

Long-term liabilities = $20,000

Common stockholders' equity = $90,000

Total stockholders' equity = $100,000

Now,

Ratio of fixed assets to long term liabilities

= Net Fixed assets ÷ Long term liabilities

or

= $400,000 ÷ $20,000

= 20

Hence,

The correct answer is option (b) 20

3 0
4 years ago
Subjective Questions
miv72 [106K]

Answer:

2.look at explanation.

Explanation:

2.Profession refers to type of a job that needs special training or skill after getting certain knowledge related to particular Sector

6 0
3 years ago
Over the years, O'Brien Corporation's stockholders have provided $20,000,000 of capital, when they purchased new issues of stock
velikii [3]

Answer:

The answer is: O'Brien's MVA is $12,000,000

Explanation:

We first take the total book value of equity $20,000,000

Then e calculate the market value of the company (stock price per share times shares outstanding) = $32 per share x 1,000,000 shares = $32,000,000

The market value added (MVA) is the difference between market value and equity value:

MVA = $32,000,000 - $20,000,000 = $12,000,000

4 0
4 years ago
Other questions:
  • The government decided to reduce taxes on fast-food to increase revenue. The government assumes that fast-food products have a.
    11·1 answer
  • Kelly has decided to start his own business giving sailing lessons. To purchase equipment for the business, Kelly withdrew $1,00
    9·1 answer
  • Pandar Corp. issues 12-year, AA-rated bonds. What is the yield on one of these bonds? Disregard cross-product terms; that is, if
    14·1 answer
  • O.K. Company uses a job order cost accounting system and allocates its overhead on the basis of direct labor costs. O.K. expects
    7·1 answer
  • Gorton's sells Gorton's Fish Sticks, Gorton's Fish Fillets, and Gorton Grilled Fish. This is an example of
    5·1 answer
  • s there any way for a monopoly to operate more efficiently than a competitive market? Why or how? Yes: the government can regula
    10·1 answer
  • 16. What size paper should you use for a legal document?
    13·1 answer
  • 1. Harley Davidson has its engine plant in Milwaukee and its motorcycle assembly plant in Pennsylvania. Engines are transported
    12·1 answer
  • Using the allowance method of accounting for uncollectible receivables. April 1 Sold merchandise on account to Jim Dobbs, $7,500
    10·1 answer
  • What is the most efficient way to adjust the size of the picture?​
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!