Which payment option could have interest charged to you?

The given data represent the total compensation for 10 randomly selected CEOs and their company's stock performance in 2009. An

jok3333 [9.3K]

Missing Question Data:

As the Question is missing relevant data, I have searched for it online and found a question similar. The data is attached in a picture file. It might be a little different from your actual question but same approach can be used to solve the question.

Answer with Explanation:

For simplicity, we denote the compensations with variable x and the stock return with variable y. Let us first find the mean and standard deviation for both compensation (x) and return (y).

Mean of Compensation (x) will be,

$X\;=\;\frac{26.43\;+\;12.03\;+\;19.74\;+\;13.54\;+\;11.97\;+\;11.41\;+\;25.94\;+\;14.46\;+\;17.13\;+\;14.71}{10}$

$X\; = \;16.737$

Mean of Stock Return (y) will be,

$Y\;=\;\frac{5.43\;+\;30.89\;+\;31.89\;+\;80.06\;-\;8.22\;+\;2.89\;+\;4.39\;+\;10.95\;+\;4.18\;+\;11.94}{10}$

$Y\;=\;17.44$

Standard Deviation for Compensation (x) is given by,

$\sigma _{x}\;=\;\sqrt{\frac{\sum (x_{i}-X)^{2}}{N}}$

$\sigma _{x}\;=\;\sqrt{\frac{(26.43-16.73)^{2}+(12.03-16.73)^{2}+....+(14.71-16.73)^{2}}{10}}$

$\sigma _{x}\;=\;5.30$

Standard Deviation for Compensation (x) is given by,

$\sigma _{y}\;=\;\sqrt{\frac{\sum (y_{i}-Y)^{2}}{N}}$

$\sigma _{y}\;=\;\sqrt{\frac{(5.43-17.44)^{2}+(30.89-17.44)^{2}+....+(11.94-17.44)^{2}}{10}}$

$\sigma_{y}\;=\;23.97$

To find the predicted stock return, we have to use the equation for of line of regression,

$y_{required}\;-\;Y\;=\;z\;*\;\frac{\sigma _{x}}{\sigma _{y}}\;*\;(x_{required}-X)\;.........\;(1)$

where,

$z\; =\;Correlation\;coefficient\;=\;-0.2426\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;\;(given)$

$x_{required}\;=\;Compensation\;of\;\$15\;million\;=\;15$

$y_{required}\;=\;Stock\;return\;at\;x_{required}$

Equation (1) will become,

$y_{required}\;-\;17.44\;=\;-0.2426\;*\;\frac{5.30}{23.97}\;*\;(15\;-\;16.73)$

$y_{required}\;=\;-0.054*\;(-1.73)\;+\;17.44\;$

$y_{required}\;=\;17.533$ .

4 0

3 years ago

What does homeowner's insurance pay for in case of damage to your house and its contents? apex?

patriot [66]

Homeowner's insurance will pay for your home that is damaged, plus the belongings that are inside of the home. Most of the policies include the repair of your home if they are damaged in a fire. The insurer can even pay for you to have a place to stay, such as a hotel.

5 0

3 years ago

A horizontal demand curve shows that demand for a good is _____.

Evgen [1.6K]

'Elastic' goods-is something in the market that is high in demand (in publicity-and that people buy it.
Ex beef is a great example of an elastic good. If you set the beef to a higher price than usual-customers will not buy it as expectedly as before.

'Inelastic' goods like gas- is a perfect example because if you set gas in high price-customers would not question it and pay for the price of gas anyways. (Due to it fulfilling customers' needs only.)

To answer your question, a horizontal demand curve is when you have a fixed demand in price (people are buying it has demand) and that supplies have ample quantity. (Supplies are high quantity)

Demand for a good in the horizontal demand curve is 'moderately elastic' because the supplies have quantity more than the fixed demand. It fits modernly elastic-customers are not buying as much due to high price and therefore supplies of quality increases. Just like the beef example.

The Answer is A

If the horizontal demand curve is 'inelastic' then it would be the opposite- demand would be higher than the quantity of supply.

Hope this helps :)

4 0

3 years ago

Consider a risky portfolio. The end-of-year cash flow derived from the portfolio will be either $80,000 or $200,000, with equal

Bingel [31]

Answer:

Required:

a. If you require a risk premium of 9%, how much will you be willing to pay for the portfolio?

b. What is the price you will be willing to pay now?

8 0

3 years ago

In the context of organizational behavior, _____ stressed the value of participative management. henri fayol peter drucker adam

Ray Of Light [21]

Henri Fayol stressed the value of participative management. Henri Fayol's administration hypothesis is a straightforward model of how administration communicates with the work force. Fayol's administration hypothesis covers ideas extensively, so any business can apply his hypothesis of administration. Today the business group considers Fayol's established administration hypothesis as a significant manual for profitably overseeing staff.

7 0

3 years ago