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Klio2033 [76]
3 years ago
6

The standard deviation of return on investment A is 10%, while the standard deviation of return on investment B is 5%. If the co

variance of returns on A and B is .0030, the correlation coefficient between the returns on A and B is _________.
Business
1 answer:
ahrayia [7]3 years ago
8 0

Answer:

<em>The answer is 60.</em>

Explanation:

<em>The First step in solving the example given, is to recall the following steps to be taken </em>

<em>The standard deviation of return on investment A =10%</em>

<em>The standard deviation of return on investment B =5%</em>

<em>The co-variance of returns both on A and B =.0030</em>

<em>The next step is as follows</em>

<em>co-variance = correlation </em>

<em>.0030 (.05 x .10) =  60</em>

<em>Therefore the correlation coefficient between the returns of A and B is 60</em>

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The idea that the money supply does not affect real economic variables is called:________
Sergio [31]

Answer:

The correct answer is letter "B": monetary neutrality.

Explanation:

Austrian economist Friedrich A. Hayek (1899-1992) referred to monetary neutrality as a theory that states the changes in the money supply do not affect the <em>prices of goods, services, wages but no the economy as a whole</em>. According to Hayek, printing more money could increase the demand affecting some economic variables (such as the mentioned above), but in the long run, it does not have a relevant impact.

3 0
3 years ago
Retained earnings: Group of answer choices
Slav-nsk [51]

Answer:

Retained earnings refers to:

D. The net losses and dividends declared since its inception of a company's cumulative net profit.

Explanation:

Retained earnings are referred as :

  • The overall earning the company have made till the present date.
  • This earning excludes the dividend money and the money of the investors distributed.
  • Whenever new records are made for the company this dividend money is readjusted.
  • This leftover money has an impact on the account related to the expense and revenue.
  • The retained earnings are built of the total income amount which has been given by a business after paying off the dividend to the shareholders.

So, here correct option is

D. The net losses and dividends declared since its inception of a company's cumulative net profit.

3 0
3 years ago
In order to successfully carry out an acquisition, the managers at Pink Inc. prepared a list of potential target companies that
Fudgin [204]

This process of evaluating the companies for acquisition is best known as A. Due diligence.

<h3>What is corporate acquisition?</h3>

Corporate acquisition refers to the corporate act of taking over another company for business expansion and other strategic intents.

To make a successful acquisition, the acquiring company carries out due diligence by evaluating potential acquisition candidates.

<h3>Question Completion with Answer Options:</h3>

A. Due diligence

B. Market intelligence

C. Consultation

D. Market evaluation

Thus, this process of evaluating the companies for acquisition is best known as A. Due diligence.

Learn more about due diligence in acquisition at brainly.com/question/13806280

#SPJ12

5 0
2 years ago
If the market maker is willing to purchase the entire block of 1,500 shares from Amara and, from that block, resell 1,000 shares
NeTakaya

Answer:

$1,300

Explanation:

Calculation to determine what the market maker’s net profit from Brent’s transaction

First step is to calculate the bid-ask spread using this formula

Bid-ask spread=Ask price-Bid price

Let plug in the formula

Bid-ask spread=$31.80-$30.50

Bid-ask spread=$1.30

Now let calculate the Net profit

Using this formula

Net profit=Bid-ask spread*Shares resell

Net profit=$1.3 x 1000 shares

Net profit=$1,300

Therefore the market maker’s net profit from Brent’s transaction will be $1,300

3 0
3 years ago
A third method for determining the forecasted cost at completion is to re-estimate the costs for all the remaining work to be pe
faust18 [17]

Answer:

A. the FCAC is less than the TBC

Explanation:

If the amount of cumulated actual costs is less than difference between the total budgeted cost and the re-estimate, then the FCAC is less than the TBC

3 0
3 years ago
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