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Alex
3 years ago
5

Blue Bell stock is expected to return 8.4 percent in a boom, 8.9 percent in a normal economy, and 9.2 percent in a recession. Th

e probabilities of a boom, normal economy, and a recession are 6 percent, 92 percent, and 2 percent, respectively. What is the standard deviation of the returns on this stock.38 percent.55 percent.13 percent.42 percent.06 percent

Business
1 answer:
anygoal [31]3 years ago
3 0

Answer:

13%

Explanation:

The appropriate formula to use is as shown below:

Standard Deviation = \sqrt{\frac{∑f(x-y^{2} )}{∑f}}

Where ∑ is the summation symbol,

f is the frequency (in this sample, the probability expressed in decimal),

x is the expected return,

y is the mean return.

The formula for y, the mean return, is as follows:

y = \frac{∑fx}{∑f}}.

All computations are attached.

From the computation,

the mean return = 8.876%

the standard deviation of returns = 12.7377% = 13%

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The case of Dole bananas has been referred to in the press and business publications as an example of right-minded import protection in the United States.

<h3>What was the case of Dole bananas?</h3>

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In 2004, a group of Nicaraguan banana plantation workers sued Dole and Dow Chemical Companies for causing them to become sterile as a result of their exposure to a US-banned pesticide (DBCP), which the companies told them to use on Nicaraguan plantations in the 1970s.

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2 years ago
the regulatory cycle provides an opportunity for self-regulation during the latency stage. group of answer choices true false
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2 years ago
Suppose the inflation premium is 2 percent and the nominal interest rate is 1 percent. Instructions: In part a, enter your answe
Fudgin [204]

Answer:

(a) Real Interest Rate   = -1 %

(b) Real Interest Rate   = -2.4 %

Explanation:

Real Interest Rate = (1+ Nominal Interest rate)/(1+Inflation Rate) -1

 (a)Real Interest Rate = (1+0.01)/(1+0.02)-1

                                    = -1 %

 (b) Real Interest Rate = (1+0.005)/(1+0.03) -1

                                      = -2.4 %

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3 years ago
__________ Is not just for technology companies. Haemonetics, a blood management solutions company, purchased Hemerus Medical wh
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Answer:

B) Innovation by Acquisition.

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<u>Innovation by Acquisition </u>Is not just for technology companies.

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8 0
3 years ago
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Answer:

$94,260.00

Explanation:

There is no doubt that the difference between net income under absorption costing and variable costing method lies in the treatment of fixed cost, under the former, each product is charged with fixed cost while total fixed cost is charged as a  period cost under the latter.

In essence, the fixed cost on ending inventory would have been expensed and deducted in arriving at net income under variable cost, in other words, we simply add to net income under variable costing the fixed cost attributable to an increase in ending inventory

income=$82,500+(3200-1800)*$8.40

net income=$94,260.00

4 0
3 years ago
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