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liubo4ka [24]
3 years ago
5

An asset has an average return of 11.57 percent and a standard deviation of 24.54 percent. What is the most you should expect to

lose in any given year with a probability of 2.5 percent?
Business
1 answer:
forsale [732]3 years ago
3 0

Answer:

-37.51

Explanation:

Confidence interval = 1 - Probability * 2

= 1 - 0.025*2

= 0.95

= 95%

As per 95% rule , range = mean +/- 2 * Standard deviation

= 11.57 +/- 2 * 24.54

= 11.57 - 2 * 24.54 to 11.57 + 2 * 24.54

= 11.57 - 49.08 to 11.57 + 49.08

= -37.51 to 60.65

Conclusion: -37.51 is the lower bound hence it is the max one can expect to lose in any given year.

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Answer:

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Explanation:

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Since the salvage value would be after 5 years=

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On December 28, I. M. Greasy, Catering completed $600 of catering services. As of December 31, the customer had not been billed
Alex

Answer: Debit Accounts receivable for $600.

Explanation:

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7 0
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Read 2 more answers
The following transactions occurred during December 31, 2021, for the Falwell Company. A three-year fire insurance policy was pu
Leya [2.2K]

Answer

The answer and procedures of the exercise are attached in the following archives.

Explanation  

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

1. Insurance expense for 6 months = 12,960 x 6/36

= $2,160

Prepaid insurance on December 31, 2021 = 12,960 - 2,160

= $10,800

2.Interest expense for 2 months = 220,000 x 12% x 2/12

= $4,400

Kindly comment if you need further assistance. Thanks

Download xlsx
7 0
3 years ago
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