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2 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]2 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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barxatty [35]

The answer should be False.

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2 years ago

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eimsori [14]

Answer:

The question is incomplete, the option include:

$20,000 decrease.
$45,000 decrease.
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Explanation:

1. In 2019 the number of finished units with internal faults = $400,000 completed units * 0.05 = $20,000.

2. In 2020 the number of finished units with internal faults = $20,000* (1 -0.1) = $18,000.

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2 years ago

Q 4.24: At the end of March, Paul’s Painting hired five temporary employees to work on a project that began on April 5 and ended

Nookie1986 [14]

Answer:

At the end of March, Paul’s Painting hired five temporary employees to work on a project that began on April 5 and ended on April 28. Paul’s received 100% of the total payment for the project on May 3. In this situation, both cash basis accounting and GAAP require that Paul’s recognize the employees’ total salary expense in April.

Explanation:

A collection of accounting rules and standards usually followed, for financial reporting is known as GAAP (generally accepted accounting principles) .

For businesses, GAAP needs accrual accounting.

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In the situation given in the question, the revenue from the project is earned in April, subsequently, the salary expense related to that work should also be recognized in the same period due to an accrual basis.

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2 years ago

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adell [148]

Answer:

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