D)
Market equilibrium occurs when supply = demand
It can be deduced that the expected rates of return of stocks A and B are 13.2% and 7.7% respectively.
<h3>
How to calculate the expected
rates of return</h3>
E(RA) = 0.1 (10%) + 0.2 (13%) + 0.2 (12%) + 0.3 (14%) + 0.2 (15%)= 13.2%
E(RB) = 0.1 (8%) + 0.2 (7%) + 0.2 (6%) + 0.3 (9%) + 0.2 (8%)= 7.7%
Therefore, the expected rates of return of stocks A and B are 13.2% and 7.7% respectively.
The standard deviation will be calculated thus:
Var(RA) = [0.1 (10%-13.2%)² + 0.2 (13%-13.2%)² + 0.2 (12%-13.2%)² + 0.3 (14%-13.2%)² + 0.2 (15%-13.2%)2 ] 1/2
= 1.5%
Var(RB) = [0.1 (8%-7.7%)² + 0.2 (7%-7.7%)² + 0.2 (6%-7.7%)² + 0.3(9%-7.7%)² + 0.2 (8%-7.7%)² ] 1/2
= 1.1%
Therefore, the standard deviation of stocks A and B are 1.5% and 1.1% respectively.
Learn more about rate of return on:
brainly.com/question/25821437
Answer:
A. $0
B. $112
C. Investor A 14.3% gain
Investor B 18.5%
Explanation:
a) Based on the information given interest cost for investor A will be Zero
b) Calculation for What is the interestcost for investor B
Cost of interest =(100 shares*$35)×(100*%-69%)×0.08
Cost of interest = 3,500 x 0.40 x 0.08
Cost of interest =$112
c) Calculation for what percentage returndoes each investor earn
Investor A: 4,000 - 3,500 = 500/3,500
= 0.1428 =14.3% gain
Investor B: $500 gain - $112 interest
= $388/2,100 = 0.1848 =18.5%
If you write a check that doesn't balance out
The red flags that help an organization to assess if it needs to clarify or reinforce its values includes:
- when top leaders send mixed messages about what is important
- when different individuals and subgroups have fundamentally
- when the organization has values but does not practice them .
<h3>What is a
red flag?</h3>
It refers to a warning or indicator that is suggesting that there is a potential problem or threat with a company's stock, financial statements, news reports etc. It may be any undesirable characteristic that stands out to an analyst or investor.
Hence, in this case a red flag has occurred when members lack understanding about how they should behave as they attempt to meet goals, when different individuals and groups have different value systems, when top leaders send mixed messages about what is important, when day-to-day life is disorganized, when members complain about the organization and when organization has values but does not practice them.
Read more about red flag
brainly.com/question/16427326
#SPJ1
