It can be deduced that the expected rates of return of stocks A and B are 13.2% and 7.7% respectively.
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How to calculate the expected
rates of return</h3>
E(RA) = 0.1 (10%) + 0.2 (13%) + 0.2 (12%) + 0.3 (14%) + 0.2 (15%)= 13.2%
E(RB) = 0.1 (8%) + 0.2 (7%) + 0.2 (6%) + 0.3 (9%) + 0.2 (8%)= 7.7%
Therefore, the expected rates of return of stocks A and B are 13.2% and 7.7% respectively.
The standard deviation will be calculated thus:
Var(RA) = [0.1 (10%-13.2%)² + 0.2 (13%-13.2%)² + 0.2 (12%-13.2%)² + 0.3 (14%-13.2%)² + 0.2 (15%-13.2%)2 ] 1/2
= 1.5%
Var(RB) = [0.1 (8%-7.7%)² + 0.2 (7%-7.7%)² + 0.2 (6%-7.7%)² + 0.3(9%-7.7%)² + 0.2 (8%-7.7%)² ] 1/2
= 1.1%
Therefore, the standard deviation of stocks A and B are 1.5% and 1.1% respectively.
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I would say B is the correct answer
Answer:
The answers are:
- Dr accounts payable 1,000
- Cr cash 980
- Cr merchandise inventory 20
Explanation:
Since accounts payable is a liability, when it decreases, it should be debited. Since the merchandise was paid (less debt), then the company's liabilities decrease.
Since cash is an asset, when an asset decreases, it should be credited. LOL Music Store paid its debt in cash, therefore decreasing its cash account.
Since the purchase discount reduces the value of the inventory and inventory is an asset, when an asset decreases, it should be credited.
Answer:
c. is very profitable for the dealer
Explanation:
"Gap'' Insurance pays off the loan balance if the insurance payment is insufficient also it is profitable for dealer as well. Sometime the main insurance claim cannot fufill the loss so those that cannot be fullfill by main insurance are manage by gap insurance.
Answer:
At the end of the sixth year, you will have:
= $8,487.17.
Explanation:
a) Data and Calculations:
Annual savings = $1,000
Interest rate per year = 10%
Period of savings = 6 years
First deposit = today
From an online financial calculator:
N (# of periods) 6
I/Y (Interest per year) 10
PV (Present Value) 0
PMT (Periodic Payment) 1000
Results
FV = $8,487.17
Sum of all periodic payments $6,000.00
Total Interest $2,487.17
