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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%

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The following information relates to the manufacturing operations of the Abbra Publishing Company for the year: Beginning Ending
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Raw materials purchased during the year amount to: $1,081,000

<u>Giving the following information:</u>

Beginning Ending Raw materials inventory$547,000 $610,000

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<u>To calculate the direct material purchased, we need to use the following formula:</u>

Beginning Raw Materials + Purchases – Ending Raw Materials = Raw Materials Used

$547,000 + Purchases – $610,000 = $1,018,000;

Purchases = $1,018,000 + $610,000 – $547,000 = $1,081,000

<h3>What is the Cost of Raw Materials Purchased?</h3>

Purchases of raw materials, consumables and services are purchases of all commodities used as inputs in the production process and of services related to the supply of factors of production, such as renting property or equipment, leasing, temporary staff, and, in general, all outside services purchased for own use.

The cost of raw materials purchased can therefore be calculated as follows: Raw Materials Purchased = (Ending Inventory – Beginning Inventory) + Cost of Goods Sold. A direct material purchases budget determines the quantity of material purchased within a production period.

Your question is incomplete, but most probably your full question was:

The following information relates to the manufacturing operations of the Abbra Publishing Company for the year:

Beginning Ending Raw materials inventory $547,000 $610,000.The raw materials used in manufacturing during the year totaled $1,018,000. Raw materials purchased during the year amount to:

A. $955,000.

B. $892,000.

C. $1,565,000.

D. $408,000.

E. $1,081,000.

Learn more about Cost of Raw Materials Purchased on:

brainly.com/question/24258358

#SPJ4

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The probability that inventory will remain in stock based upon a specified level of Safety Stock is called: A. The Order-Up-To L
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Answer:

The answer is "Option D".

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The system's performance is gauged only by the level of service. The quality of service specifies the percentage of such goals which should be met. That likelihood of stock remaining in inventory based on a set level of Security Stock is referred to as the service level. Ex: In a contact center, the number of calls that are addressed. That percentage of consumers who have waited less than a fixed amount of time.

4 0
3 years ago
The Platinum Platform, in Dubuque, Iowa, sells high-quality, unique bedding that is a real value to upscale homes in the area. N
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Answer:

focused-differentiation

Explanation:

According to my research on different business strategies, I can say that based on the information provided within the question The Platinum Platform is utilizing a focused-differentiation strategy. This is a strategy that focuses on offering specific products that make the customer believe that the product is vastly superior to it's competitors even though prices are higher. This allows them to gain a competitive advantage in the market. Which is what Platinum Platform is doing by offering it's unique high quality bedding.

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

6 0
3 years ago
Read 2 more answers
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