Answer: C. value at risk
Explanation:
Value at Risk allows for risk to be measured and by extension controlled as it works by measuring the worst loss that can be suffered by a project, company or portfolio over a given period and given a certain probability.
It is the favorite of financial institutions like commercial banks as they are able to find out just how much losses they face when investing or loaning money out.
Answer:
800 units of product A must be sold for break-even
Explanation:
Given, weighted-average contribution is $100.
Total break-even units = Total fixed cost / Weighted-average contribution
Total break-even units = $400,000 / $100
Total break-even units = 4,000 units
Product A break-even = 4,000 x 20%
Product A break-even = (800 units)
Hence, the correct answer is 800 units.
Answer:
Ans. the rate of return of this invesment is 3.5278% annual.
Explanation:
Hi, what we need to do here is to find the future value of all six payments, beginning when the child turns 12, which will end when he turns 17. One year later (when the child turns 18) he will receive $25,000 per year, for the next 4 years. This is the equation that we need to use (and solve for "r").
![\frac{A_{1}((1+r)^{6}-1) }{r} =\frac{A_{2}((1+r)^{4}-1) }{r(1+r)^{4} }](https://tex.z-dn.net/?f=%5Cfrac%7BA_%7B1%7D%28%281%2Br%29%5E%7B6%7D-1%29%20%20%7D%7Br%7D%20%3D%5Cfrac%7BA_%7B2%7D%28%281%2Br%29%5E%7B4%7D-1%29%20%20%7D%7Br%281%2Br%29%5E%7B4%7D%20%7D)
Where:
A1=$14,000
A2=$25,000
So, everything should look like this
![\frac{14,000((1+r)^{6}-1) }{r} =\frac{25,000((1+r)^{4}-1) }{r(1+r)^{4} }](https://tex.z-dn.net/?f=%5Cfrac%7B14%2C000%28%281%2Br%29%5E%7B6%7D-1%29%20%20%7D%7Br%7D%20%3D%5Cfrac%7B25%2C000%28%281%2Br%29%5E%7B4%7D-1%29%20%20%7D%7Br%281%2Br%29%5E%7B4%7D%20%7D)
As you can see, this would take forever to solve, so what we have to do is to use MS Excel, we have to use the "Goal Seek" function. Please check the MS Excel spread sheet attached to this answer.
Please use this function with the following parameters.
Set Cell: G7
To Value: 0
By changing cell: G2
Ans. 3.5278%
Best of luck.
Answer:
O a key ethical issue
Explanation:
In the process of gathering data for analysis, it is very important that certain ethical standards are adhered to. One of these very important ethical requirements is making sure that there is consent from the individuals whose data is to be used. Individuals have a right to their privacy. Using data or information about them for whatever purpose without them approving of it is a breach of privacy and might incur lawsuits if they get to know about that.
To prevent such issues from arising, the intent of the analyst should be clearly disclosed and the approval of the informant obtained.