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Otrada [13]
3 years ago
7

The variance of returns of Asset A is 625. The variance of returns of Asset B is 1,225. The covariance of returns between Asset

A and Asset B is 600. The correlation of returns between Asset A and Asset B is closest to:
Business
1 answer:
kodGreya [7K]3 years ago
8 0

Answer:

The correlation of returns between Asset A and Asset B is closest to 0.685714

or 68.57%

Explanation:

The formula to find the correlation of an asset is

Correlation of AB = Co variance AB/Standard deviation A * Standard deviation B

Co variance AB =600

Standard deviation of A= (625)^0.5=25

Standard deviation of B = (1,225)^0.5=35

Put these values in the formula

600/(25*35)=0.685714

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The top management team at Sierra Infusion is concerned about the declining performance of firms in their industry. The team mem
IrinaVladis [17]

Answer:

C. increased diversification of Sierra Infusion.

Explanation:

The top management team at Sierra Infusion is concerned about the declining performance of firms in their industry. The team members are becoming concerned about the security of their jobs at Sierra Infusion. At a meeting over dinner, the top management team agrees to go to the Board of Directors with a proposal for increased diversification of Sierra Infusion.

4 0
3 years ago
State the effect (cash receipt or payment and amount) of each of the following transactions, considered individually, on cash fl
Ivanshal [37]

Answer:

    Effect of Transaction on Cash Flows

     Effects                     Amount

1.   Cash Payment         $239,000

2.  Cash Receipt           $252,000 (12000*$21)

3.  Cash Receipt           $91,400

4.  Cash Payment         $491,000

5.  Cash Payment         $86,000

6.  Cash Receipt           $188,100 (190,000*0.99)

7.  Cash Payment         $353,400 (6,200*$57)

8.  Cash Payment         $36,100 [1.90*(23,000-4,000)]

5 0
2 years ago
A firm sells 1000 units per week. It charges $15 per unit, the average variable costs are $10, and the average costs are $25. In
erik [133]

Answer:

b. ​Continue operating as the firm is covering all the variable costs and some of the fixed costs

Explanation:

A firm should shutdown operations if its price is less than average variable cost.

The price the firm sells is $15

Average variable cost is $10.

Price is greater than average variable cost in excess of $5.

The $5 covers some of the average fixed cost.

I hope my answer helps you

7 0
3 years ago
Firms will typically maintain a list of research and development projects ranked by expected rate of return. Expected rate of re
ddd [48]

Expected rate of return is defined as the amount of money an individual gets on investment.

<h3>What is expected return?</h3>

The expected return is the amount of profit or addition on money invested that an individual who is an investor is expected to get after a periods of time on the investment.

Therefore, expected rate of return is defined as the amount of money an individual gets on investment.

Learn more on rate of return below

brainly.com/question/16725994

#SPJ1

4 0
1 year ago
On March 3, Cobra Inc. purchased a desk for $330 on account. On March 22, Cobra purchased another desk for $460 also on account,
Olin [163]

Answer:

Cobra Inc.

The amount that Cobra should report for desks is $790.

Explanation:

a) Data and Calculations:

Purchases on March 3 =    $330

Purchases on March 22 = $460

Payment on March 24 =   ($460)

Amount unpaid =               $330

b) The amount that Cobra Inc. should report as Accounts Payable at the end of March is $330.  However, in reporting for the desks, it should report $790 in assets.  This amount represents the value of desks that the company is possessing, which is financed by company cash and creditors.

4 0
2 years ago
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