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3 years ago

The standard deviation of a portfolio consisting of 30% of Stock X and 70% of Stock Y is:

Business

1 answer:

andrew-mc [135]3 years ago

5 0

Answer:

The portfolio SD is A. 20.65%

Explanation:

The standard deviation tells the total risk (both systematic and unsystematic) associated with a stock or a portfolio. The portfolio risk or the standard deviation of portfolio can be calculated using the following formula as attached in the picture below.

Using this formula, the standard deviation of the portfolio is:

SDp = √(0.3)² * (0.2)² + (0.7)² * (0.25)² + 2 * (0.3)*(0.7) * 0.4 * (0.2)*(0.25)

Portfolio SD = 0.20645 or 20.645% rounded off to 20.65%

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Rudyard Corporation had 160,000 shares of common stock and 16,000 shares of 8%, $100 par convertible preferred stock outstanding

snow_lady [41]

Answer:

Diluted EPS = $3.0625

Explanation:

Earning per share (EPS) = earnings available to ordinary shareholders/ number of ordinary shares possible after conversion

Conversion of preferred stock into common stock

= 16,000 × 5 = 80,000

Number of ordinary shares = common stock + converted preferred stock

= 160000+ 80000 =240,000 units

Net Income 520,000

Preferred dividend (8%×100×16000) (<u>128000) </u>

Earnings available to shareholders <u> 392000 </u>

Number of shares 240,000

Diluted Earnings per share

392,000/240,000= $3.0625

Diluted EPS = $3.0625

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3 years ago

Zoning regulations often prevent a landowner from doing whatever she wants with her property. Some people believe that such zoni

Afina-wow [57]

Answer:

The correct answer is takings.

Explanation:

The principles set forth in the Fifth Amendment to the United States Constitution are fundamental to anyone accused of committing a crime. Although there are several provisions of this amendment, the elements that protect a person accused of committing a crime are four: the right against forced self-incrimination; the right to a grand jury; the right not to be tried twice for the same crime (exception of res judicata) and the right to due process.

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3 years ago

For each of the following transactions that occur in their lives, identify whether it is included in the calculation of U.S. GDP

Vadim26 [7]

Answer:

a. Imports (M), b. Government Expenditure (G), c. Exports (X), d. Investment 'I'

Explanation:

a) 'Kevin buys a bottle of Italian wine' is a part of US Imports (M)

b) 'The state of Pennsylvania repaves highway PA 320' is a part of US Government Expenditure (G)

c) 'Maria's father in Sweden orders a bottle of Vermont maple syrup from the producer's website' is a part of US Exports (X)

d) 'Kevin's employer upgrades all of its computer systems using U.S.-made parts' is a part of US Investment 'I'

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3 years ago

Orb, Inc., does business online around the globe. The United Nations Convention on the Use of Electronic Communications in Inter

likoan [24]

Answer:

D. all of the choices

Explanation:

The UNC on the Use of Electronic Communications in International Contracts and other International agreements improve global commercial certainty by determining an Internet user´s location for legal purposes, by providing for the recognition of judgments by other nations´ courts and also by providing that e-signatures are the equivalent of signatures on paper.

6 0

3 years ago

You are evaluating a project for your company. You estimate the sales price to be $240 per unit and sales volume to be 3,400 uni

kirill115 [55]

Answer:

D. $347,540

Explanation:

The operating cash flow is shown below:

= EBIT + Depreciation - Income tax expense

where,

EBIT = (Sales price per unit - variable cost per unit) × number of units in year 2 - fixed cost

= ($240 - $90) × 4,400 units - $170,000

= $490,000

Income tax expense = (Sales price per unit - variable cost per unit) × number of units in year 2 - fixed cost × tax rate

= ($240 - $90) × 4,400 units - $170,000 × 0.34

= $166,600

And, the depreciation expense would be

= Depreciation expense × tax rate

= $71,000 × 0.34

= $24,140

The depreciation expense would be

= (Initial investment - salvage value) ÷ (useful life)

= ($213,000 - $0) ÷ (3 years)

= ($213,000) ÷ (3 years)

= $71,000

Now apply these values to the formula above.

Thus, the value would be

= $490,000 + $24,140 - $166,600

= $347,540

4 0

4 years ago