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JulijaS [17]
3 years ago
6

An asset has an average historical rate of return of 10.1 percent and a variance of 0.0116751. What is the upper percentage rang

e of returns would you expect to see approximately two-thirds of the time?
Business
1 answer:
pochemuha3 years ago
8 0

Answer:

20.91%

Explanation:

Provided information

Average historical rate of return = 10.1 %

Variance = 0.0116751

By considering the above information, the standard deviation would be

= Square root of Variance

= 10.81%

So the upper percentage range of return would be

= Standard deviation + standard deviation

= 10.81% + 10.1%

= 20.91%

Since we have to find out the upper percentage so we added it otherwise we have to deduct it

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This morning, you purchased a stock that will pay an annual dividend of $1.90 per share next year. You require a 12 percent rate
Luba_88 [7]

Answer:

The correct answer is $2.43.

Explanation:

The annual dividend is $1.90.

The expected rate of return is 12%.

The growth rate is 3.5%.

The current stock price will be

=\frac{dividend}{required rate of return-growth rate}

=\frac{1.90}{12-3.5}

=\frac{1.90}{0.085}

=$22.35

The stock price at year 3 will be

=\frac{dividend*(1-growth rate)^3}{required rate of return-growth rate}

=\frac{1.90*(1+0.035)^3}{12-3.5}

=\frac{1.90*1.10}{0.085}

=$24.78

The capital gain will be

=stock price at year 3-current stock price

=$24.78-$22.35

=$2.43

8 0
2 years ago
When a customer chooses to accept an item of value from a business because it requires no incremental spending on the part of th
iVinArrow [24]

Answer:

The correct answer is letter "B": rational people think at the margin.

Explanation:

The "rational people think at the margin" principle means that consumers consider the marginal benefits and costs of acquiring a good or service before the purchase is made. Purchases typically take place when the marginal benefit is higher than the marginal cost.

7 0
3 years ago
After a customer buys a computer or receives service from Tech Geek, a service representative contacts each customer to conduct
blsea [12.9K]

Answer:

B) False

Explanation:

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a. True

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Hence, the given statement is true

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A company's competitive advantage will not endure for long when that competitive advantage can be
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Quickly or easily duplicated by other companies
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