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Firdavs [7]
3 years ago
11

You own a stock which has produced annual returns of 11 percent, 3 percent, 8 percent, and 14 percent over the past four years,

respectively. The arithmetic rate of return is _____ percent and the geometric rate of return is _____ percent.A) 8.50; 8.92B) 8.50; 18.92C) 9.00; 8.92D) 9.00; 9.92E) 9.00; 18.92
Business
1 answer:
Nana76 [90]3 years ago
6 0

Answer:

C) 9.00; 8.92

Explanation:

The arithmetic rate of return is given by:

R_{A} = \frac{11+3+8+14}{4} \\R_{A} = 9.00

The geometric rate of return is given by:

R_{G} =  (\sqrt[4]{(1.11*1.03*1.08*1.14)} -1) *100 \%\\R_{G} =  (1.0892-1) *100 \%\\R_{G} =  8.92

Therefore, the arithmetic rate of return is 9.00 percent and the geometric rate of return is 8.92 percent

The answer is C) 9.00; 8.92.

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A company purchased a computer system at a cost of $24,000. The estimated useful life is 6 years, and the estimated residual val
max2010maxim [7]

Answer:

Year 2= $3,333.33

Explanation:

Giving the following information:

A company purchased a computer system for $24,000. The estimated useful life is 6 years, and the estimated residual value is $9,000.

To calculate the depreciation expense for the second year, we need to use the following formula for year 1 and 2:

Annual depreciation= 2*[(book value)/estimated life (years)]

Year 1= 2*[(24,000 - 9,000)/6]= 5,000

Year 2= 2*[(15,000 - 5,000)/6]= 3,333.33

7 0
3 years ago
The Retained Earnings balance was $24,100 on January 1. Net income for the year was $19,900. If Retained Earnings had a credit b
padilas [110]

Answer: $17800

Explanation:

The opening balance of Retained earnings = $24,100

Net Income for the year = $19,900

Closing balance of Retained earnings = $ 26,200

The, the amount of dividends declared during the year = (opening balance) +(Net Income) -( Closing balance)

= $ (24100+19900-26200)

= $17800

Hence, the amount of dividends declared during the year  is $17800.

4 0
3 years ago
Darren has borrowed $100$ clams from ethan at a $10\%$ simple daily interest. meanwhile, fergie has borrowed $150$ clams from ge
Oxana [17]

Answer:

20

Explanation:

start doing math

7 0
2 years ago
Which statement represents most correctly the relationship between nominal GDP and real GDP?
Nady [450]

Answer:

The answer is: C) Nominal GDP measures current production using current prices, whereas real GDP measures current production using base-year prices.

Explanation:

Nominal GDP measures the production of total finished products and services within a country during a particular period using the current prices of the products and services. Real GDP measures the production of total finished products and services within a country during a particular period using base-year prices of the products and services.

Nominal GDP doesn't take in account inflation, while real GDP is adjusted by inflation. Nominal GDP is also higher than the real GDP since recent prices are higher than the base-year prices (due to inflation). Real GDP can be used to compare the economy's evolution over periods of time.

8 0
3 years ago
How will a drastic fall in the price of necklaces affect the quantity of necklaces that rachel supplies? explain your answer. 12
Eduardwww [97]

Price and quality exist positively correlated.  A drastic fall in the price of a necklace shows a drastic fall in its quality.

<h3>What is price?</h3>

A price exists as the quantity of payment or compensation provided by one group to another in return for goods or services. In some situations, the price of production has various names. If the product exists as a "good" in the commercial exchange, the payment for this product will likely be named its "price".

A positive correlation exists as a connection between two variables that move in tandem—that is, in the same direction. A positive correlation exists when one variable decreases as the other variable declines or one variable increases while the other increases.  A positive correlation indicates that both variables change in the same direction. A negative correlation indicates that the variables change in opposite directions. A zero correlation signifies there's no association between the variables.

Price and quality exist positively correlated. The price of a product stands as a good indicator of its quality. You always have to spend a bit more for the best. The marketing literature has managed the usage of price as a surrogate for quality as a decision-making heuristic. That exists; the higher the price, the higher the quality.

Therefore, a drastic fall in the price of a necklace shows a drastic fall in its quality.

To learn more about positive correlation refer to:

brainly.com/question/17104826

#SPJ4

5 0
1 year ago
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