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
Lemur [1.5K]
3 years ago
15

If the economy booms, RTF, Inc., stock is expected to return 9 percent. If the economy goes into a recessionary period, then RTF

is expected to only return 4 percent. The probability of a boom is 68 percent while the probability of a recession is 32 percent. What is the variance of the returns on RTF, Inc., stock
Business
1 answer:
ddd [48]3 years ago
8 0

Answer:

    Variance = 5.44

Explanation:

The variance of a portfolio is a measure of the deviation of the returns of the assets making up the portfolio. Using the standard deviation, the variance can be worked out.

<em>Standard deviation is measure of the total risks of an investment. It measures the volatility in return of an investment as a result of both systematic and non-systematic risks.</em>

<em>Non-systematic risk includes risk that are unique to a company like poor management, legal suit against the company . </em>

<em>The variance would be determined as follows:</em>

Variance = Sum of  P×(R- r )^2  

P- probality

R- return on each asset

r- Expected return on portfolio

r =( Wa*Ra) + (Wb*Rb)

Expected return (r) = (9% × 0.68 ) + (4% × 0.32) = 7.4 %

Outcome                 R          (R- r )^2             P×(R- r )^2  

Recession              9              2.56                1.74

Boom                     4             11.56               <u>  3.70 </u>

Total                                                           <u>  5.44 </u>

Variance = Sum of  P×(R- r )^2  

    Variance = 5.44

You might be interested in
Is Ann Wood a high-involvement manager? If so, provide evidence. If not, how well do you think she’ll perform in her new job as
Soloha48 [4]
Yes she is










Search it on google
5 0
3 years ago
The main provision of the Occupational Safety and Health Act states that each employer should furnish each employee a place of e
dangina [55]

Answer:

The correct answer is letter "C": general duty clause.

Explanation:

The general duty clause is a statement imposed by the Occupational Safety and Health Act (OSHA) of 1970 by which employers commit to independently identify hazardous conditions at work to find ways to avoid them so employees' safety can be ensured. The OSHA provides a variety of informational and training material focused on health risks and safety.

8 0
3 years ago
What is the role of the Federal Reserve in the U.S. economy?
lys-0071 [83]

Answer: The correct answer:

A. Managing monetary policy.

5 0
1 year ago
Which of the following describes the results of an increase in supply on price and quintity in the market?
Furkat [3]

Answer:

This question is incomplete. However, I found the full question with choices from the web ;

Which of the following describes the results of an increase in supply on price and quantity in the market?

a.) Both price and quantity increase

b.) Both price and quantity decrease

c.) Price increases and quantity decreases

d.) Price decreases and quantity increases

e.) Insufficient information

Explanation:

If the supply of a product or service  increases in the market, it means that there will be an increase in the quantity of that product/service. Due to the interplay of  the law of demand and supply, competition among suppliers will increase, driving the price down. Therefore, there will be a  fall the equilibrium price and increase in quantity , making choice D correct.

7 0
3 years ago
Suppose that you are the vice president of marketing for Target, the large retail store chain. You want to keep your website and
marysya [2.9K]
<h2>wireless payments from mobile devices.</h2>

Explanation:

Now the trend is cashless. Everybody has smart phones and people are willing to pay through various money transfer application. So according to the given situation Vice president should choose wireless payments from mobile devices.

Option A: Correct answer

Option B: Social media application can only be used to promote product and not payment so far.

Option C: Desktop will still be present since it is not only mobile apps that is existing. May are using websites for payment

Option D & E: invalid choice.

5 0
3 years ago
Other questions:
  • Ron Landscaping's income statement reports net income of $73,300, which includes deductions for interest expense of $10,500 and
    11·1 answer
  • Where on a check should you write the name of the payee?<br> part A<br> part B<br> or part C
    10·2 answers
  • The largest royalty for texas university endowment comes from which economic product?
    14·1 answer
  • Why are capital appreciation bonds (CABs) a controversial way for local governments to finance projects?
    6·1 answer
  • For which pairs of goods would most people likely have convex indifference curves
    11·1 answer
  • Francois deposits $350.00 in a savings account. The account pays an annual interest rate of 4.3%. He makes no other deposits or
    8·1 answer
  • Granfield Company has a piece of manufacturing equipment with a book value of $44,500 and a remaining useful life of four years.
    15·1 answer
  • Aria Perfume, Inc., sold 2,870 boxes of white musk soap during January of 2021 at the price of $80 per box. The company offers a
    14·1 answer
  • What the role of marketing
    13·1 answer
  • A utility company constructed a building costing approximately $2 million that encroached on a rancher's property. The rancher i
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!