Beta = Covariance/Variance where: Covariance=A measure of an investment's return in relation to the market Variance is a measurement of how the market deviates from its mean.
Compute the beta for ABC Company stock ?
The standard deviation of returns for the asset could be divided by the standard deviation of returns for the benchmark to determine beta. The correlation between the security's returns and the benchmark's returns of 32.21 percent is multiplied to arrive at the final number.
Given that AAPL's beta of 0.6035 suggests the stock theoretically experiences 40 percent less volatility than SPY, AAPL would be regarded as being less volatile than SPY in this situation.
A stock with a beta greater than 1.0 fluctuates more than the market over time. A stock's beta is less than 1.0 if it moves less than the market. High-beta equities typically carry higher risks but also have a bigger potential reward. Although they carry less risk, low-beta equities often offer lesser returns.
Because of this, beta is frequently employed as a risk-reward ratio, which aids investors in deciding how much risk they are ready to accept in order to reap the potential rewards. It's crucial to take stock price volatility into account when determining risk. Beta is a useful proximate for risk if you view of risk as the likelihood that a stock would depreciate in value.
Beta = Covariance/Variance where: Covariance=A measure of an investment's return in relation to the market Variance is a measurement of how the market deviates from its mean.
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Answer:
B. Units transferred to the next department × Cost per equivalent unit
Explanation:
Cost per equivalent unit refers to the cost of each completed unit possible.
As there is not only the units which are complete, but newly introduced and those in work in progress, and therefore, the cost of each equivalent unit is calculated so that it computes the cost for each unit.
Accordingly, all the units which are completed and transferred to another department are complete and the equivalent cost of completion of each unit shall be allocated to those units.
Therefore, correct option is:
Option B.
Around 69% of people went to college.
Answer:
Bad debts expense Debit $ 600
Allowance for Uncollectible expenses Credit $ 600
Explanation:
The allowance for uncollectible accounts is estimated usually on the basis of a percentage of credit sales. The data in the question indicates that the estimated losses from uncollectible accounts is $ 1,000.
The unadjusted balance is $ 400, so the adjusting entry is for the balancing amount, i.e. $ 600. It is debited to bad debts and credited to allowance for uncollectible accounts.
Coupon rate on the bonds can be calculated in the following way.
Explanation:
To find the coupon rate of the bond. All we need to do is to set up the bond pricing equation and solve for the coupon payment as follows:
P = $958 = C(PVIFA₆.₄₀%,11) + $1,000(PVIF₆.₄₀%,11)
Solving for the coupon payment, we get:
C = $58.57
The coupon payment is the coupon rate times par value. Using this relationship, we get:
Coupon rate = $58.57/$1,000
Coupon rate = .0586, or 5.86%
Calculator Solution:
Enter 11 6.40 ±$958 $1000
N l/Y PV PMT FV
$58.57
Coupon rate = $58.57/$1,000
Coupon rate = .0586, or 5.86%