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
aalyn [17]
3 years ago
15

The returns on the common stock of Cool Toys are quite cyclical. In a boom economy, the stock is expected to return 23 percent i

n comparison to 14 percent in a normal economy and a negative 18 percent in a recessionary period. The probability of a recession is 18 percent while the probability of a boom is 22 percent. What is the standard deviation of the returns on this stock
Business
1 answer:
mote1985 [20]3 years ago
5 0

Answer:

13.71%

Explanation:

the expected returns on the stock:

normal economy = 0.14 x 0.6 = 0.084

boom economy = 0.23 x 0.22 = 0.0506

recessionary economy = -0.18 x 0.18 = -0.0324

expected return = 0.1022

the variance for each economic period:

normal economy = (0.14 - 0.1022)² = 0.00142884

boom economy = (0.23 - 0.1022)² = 0.01633284

recessionary economy = (-0.18 - 0.1022)² = 0.07963684

the variance of the stock's returns:

normal economy = 0.6 x 0.00142884 = 0.000857304

boom economy = 0.22 x 0.01633284 = 0.0035932248

recessionary economy = 0.18 x 0.07963684 = 0.014334631

variance of the stock's returns = 0.018785159

standard deviation of stock's returns = √0.018785159 = 0.137058964 = 13.71%

You might be interested in
a pea plant that has round seeds has the genotype Rr. it is crossed with a pea plant that has wrinkled seeds and the genotype rr
baherus [9]
50%
It will create the offspring Rr, Rr, rr, and rr
6 0
3 years ago
Nipigon manufacturing has a cost of debt of 9 %, a cost of equity of 11%, and a cost of preferred stock of 10%. nipigon currentl
Vanyuwa [196]

the weighted average cost of capital for Nipigon is 0.049716

Calculate the weighted average cost of capital for Nipigon

cost of Equity share= 120,000 x $25= $30,00,000

cost of Preference share= 49,000 x $38= $18,62,000

cost of debt= $9,50,000

Total cost = $30,00,000 + $18,62,000 + $9,50,000

                 = $58,12,000

Weightage

Equity= $30,00,000/$58,12,000= 0.516

Preference=  $18,62,000/$58,12,000= 0.320

Debt= $9,50,000/$58,12,000= 0.164

Rates

Equity = 0.11

Preference= 0.10

Debt= 0.09 (1-0.4)= 0.54

weighted average cost

Equity= 0.516 x 0.11 = 0.05676

preference= 0.320 x 0.10= 0.0320

Debt= 0.164 x 0.54= 0.00886

Total weighted average cost= 0.05676+0.0320+0.00886

=0.049716

What is the weighted average cost method?

A weighted average computation accounts for the varying levels of significance of the numbers in a data collection. A specified weight is multiplied by each value in the data set before the final computation is completed when calculating a weighted average.

Learn more about weighted average cost method: brainly.com/question/8543883

#SPJ4

3 0
2 years ago
It was 8:00 a.m. on Saturday morning. Liz just learned that her well-meaning cousins were headed over to help her unpack her hou
Ymorist [56]

Answer:

empowered

Explanation:

According to my research on employee roles and responsibilities, I can say that based on the information provided within the question in this situation we can say that the employee was empowered. This can be said because he too the initiative in order fix the problem in a way that would leave the customer happy and wanting to come back again.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

8 0
3 years ago
"Analyze why the principled negotiation would be the most suitable strategy in international trade negotiation? Take examples to
erica [24]

The reason principled negotiation would be the most suitable strategy in international trade negotiation is because it helps a party to leverage his/her principles of the opponent to win the negotiation.

The principled type of negotiation is recognized as an interest-based class of  negotiation.

  • A principled negotiation is known as a winner-take-all style of negotiation that is focused on a specific goal of winning.

  • In a principled type of negotiation, there are no space for consideration of other party’s needs and requirements.

  • However, a principled negotiations is limited because it can fail to settle dispute or conflict even if a parties has the highest intentions and negotiating skills.

In conclusion, the reason principled negotiation would be the most suitable strategy in international trade negotiation is because it helps a party to leverage his/her principles of the opponent to win the negotiation.

Read more about principled negotiation

<em>brainly.com/question/6106694</em>

6 0
2 years ago
The goal of ____ is to establish international technological standards to facilitate the global exchange of information and barr
arsen [322]

The goal of <u> ISO</u>  is to establish international technological standards to

facilitate the global exchange of information and barrier-free trade.

<h3 /><h3>what is the goal of ISO in IT to global exchange?</h3>

  • The International Organization for Standardization (ISO) is an international nongovernmental organization made up of national standards bodies;

  • It develops and publishes a wide range of proprietary, industrial, and commercial standards and is comprised of representatives from various national standards organizations.

  • The organization's abbreviated name—ISO—is not an acronym; it derives from the ancient Greek word ísos, meaning equal or equivalent.

  • Because the organization would have different acronyms in different languages, the founders of the organization decided to call it the short form ISO.

  • The International Organization for Standardization (ISO) is an international nongovernmental organization made up of national standards bodies that develop and publishes a wide range of proprietary, industrial, and commercial standards.

  • The International Organization for Standardization (ISO) was founded in 1947 and is headquartered in Geneva, Switzerland.

  • In addition to producing standards, ISO also publishes technical reports, technical specifications, publicly available specifications, technical corrigenda, and guides.

To learn more about ISO, refer

to brainly.com/question/25311149

#SPJ4

5 0
1 year ago
Other questions:
  • The first step in the Analytical Hierarchy Process:_________
    9·1 answer
  • If you lived on a fixed income how would you be affected by inflation
    11·1 answer
  • Nlg gers number yes 34 to yes
    13·1 answer
  • Your company, a leading provider of disposable diapers, wipes, and other childcare products, would like to begin a program which
    12·1 answer
  • Steelcase Inc. is one of the largest manufacturers of office furniture in the United States. In Grand Rapids, Michigan, it produ
    5·1 answer
  • Leslie has completed the organizational design of her firm but is now interested in the second key informal building block, whic
    8·1 answer
  • A firm that shuts down temporarily has to pay a. its fixed costs but not its variable costs. b. its variable costs but not its f
    5·1 answer
  • Loans requiring periodic payments of interest and principle are referred to as
    13·1 answer
  • Which 4 methods allow clients to process digital payments from customers using QuickBooks Online Payments? (Select all that appl
    11·1 answer
  • Hargrave professional group performs legal services on account. what is the effect of this transaction on the balance sheet equa
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!