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tankabanditka [31]
4 years ago
6

A stock’s price fluctuations are approximately normally distributed with a mean of $29.51 and a standard deviation of $3.87. You

decide to sell whenever the price reaches its highest 10% of values. What is the highest value you would still hold the stock?
Business
1 answer:
Ivahew [28]4 years ago
8 0

Answer:

$34.46

Explanation:

In this Question there is Highest value of 10% and the probability of 90%.

we will use following formula to calculate the highest value of the stock

z value = ( x - mean ) / Standard deviation

where

x = the highest value

z score value at 10% = 1.28

Placing value in the formula

1.28 = ( x - $29.51 ) / $3.87

1.28 x $3.87 = x - $29.51

$4.9536 = x - $29.51

x = $4.9536 + $29.51

x = 34.4636

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3 years ago
A portfolio is composed of two stocks, A and B. Stock A has a standard deviation of return of 17%, while stock B has a standard
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Answer:

.793

Explanation:

Formula

.032=.7^2*.17^2+.3^2*.23^2+2(.7)(.3)(.17)(.23)p

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3 years ago
Calculate gross profit for the following situation: National Storage Company had sales of $1,000,000, sales discounts of $2,500,
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Answer:

$475,500

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The cost of goods sold is $525,000

Therefore the gross profit can be calculated as follows

= 1,000,000-2,500-15,000-525,000

= 457,500

Hence the gross profit is $475,500

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