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liubo4ka [24]
2 years ago
9

A stock is expected to earn 15 percent in a boom economy and 7 percent in a normal economy. There is a 35 percent chance the eco

nomy will boom and a 65.0 percent chance the economy will be normal. What is the standard deviation of these returns?
A. 3.82 PercentB. 4.85 PercentC. 4.97 PercentD. 5.63 Percent.
Business
1 answer:
leonid [27]2 years ago
7 0

Answer:

A. 3.82

Explanation:

First, find the expected return of the stock;

E(r) = SUM(prob * return)

E(r) = (0.35 * 0.15  ) + (0.65 * 0.07)

= 0.0525 + 0.0455

=0.098 or 9.8%

Next, use the variance formula to find the stock's standard deviation;

σ² = 0.35( 0.15 - 0.098)² + 0.65( 0.07 - 0.098)²

σ² = 0.0009464 + 0.0005096

σ²  = 0.001456

As a percentage, it becomes; 0.001456 *100 = 0.1456%

The variance is therefore 0.1456%

Find standard deviation;

Standard deviation = SQRT (0.001456)

STDEV = 0.03816 or 3.82%

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A company was formed with $60,000 cash contributed by its owners in exchange for common stock. The company borrowed $30,000 from
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Here is your answer

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When a firm shifts from transactional selling to a value-added and relationship approach, a number of changes have to take place
Verdich [7]

Answer:

When a firm shifts from transactional to value-added and relationship approach of selling the following changes takes place in the way the salesperson approaches he customer and their job:

  1. Whilst the objective the transactional approach is to make a sale, the relational approach is to build trust. When a customer trusts their sales person, it means they hold the sales person to put their interests first or at least take care of their interests whilst taking care of their too.
  2. The relational approach is more focused on retaining existing customers than making new ones. This is the obverse of a transactional relationship. It is said that it costs about 5 times extra to get a new client than what it takes to keep one. Thus the smart company focuses on honing this skill until they are better off for it.
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3 0
3 years ago
When an eyewitness to an auto accident is asked to describe what happened, which test of memory is being used?
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8 0
3 years ago
FedEx Corp. stock ended the previous year at $113.39 per share. It paid a $0.40 per share dividend last year. It ended last year
Maslowich

Answer:

$4,110 and 12.08%

Explanation:

The computation of the dollar return and the percent return is shown below:

Dollar Return = (Ending Value − Beginning Value) + Income  earned

where,

Ending value is

= $126.69 × 300 shares

= $38,007

Beginning value is

= $113.39 × 300 shares

= $34,017

And, the income earned is

= Dividend per share paid × number of shares owed

= $0.40 × 300 shares

= $120

So, the dollar return is

= $38,007 - $34,017 + $120

= $4,110

And, the percentage return is

= (Dollar return ÷ Beginning value) × 100

= ($4,110 ÷ $34,017) × 100

= 12.08%

3 0
3 years ago
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