If bonds with a face value of $750,000 and a stated rate of 5%, are issued at par on January 1st, the journal entry to record th
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Answer with Explanation:
For simplicity, we denote the compensations with variable <em>x </em>and the stock return with variable <em>y.</em> Let us first find the mean and standard deviation for both compensation (x) and return (y).
Mean of Compensation (<em>x) </em> will be,
Mean of Stock Return (y) will be,
Standard Deviation for Compensation (x) is given by,
Standard Deviation for Compensation (x) is given by,
To find the predicted stock return, we have to use the equation for of line of regression,
where,
Equation (1) will become,
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