1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Goshia [24]
3 years ago
11

If the economy booms, Meyer&Co. stock will have a return of 20.4 percent. If the economy goes into a recession, the stock wi

ll have a loss of 12.7 percent. The probability of a boom is 67 percent while the probability of a recession is 33 percent. What is the standard deviation of the returns on the stock?
Business
1 answer:
Mnenie [13.5K]3 years ago
4 0

Answer:

The standard deviation of the returns on the stock is 15.56%(Approx).

Explanation:

Expected Return=Respective return*Respective probability

=(20.4*0.67)+(-12.7*0.33)=9.477%

probability Return probability*(Return-Expected Return)^2

0.67          20.4 0.67*(20.4-9.477)^2=79.93899243

0.33          -12.7 0.33*(-12.7-9.477)^2=162.3003786

Total=242.239371%

Standard deviation=[Total probability*(Return-Expected Return)^2/Total probability]^(1/2)

=15.56%(Approx).

You might be interested in
Simple Interest versus Compound Interest [LO1] First City Bank pays 7 percent simple interest on its savings account balances, w
inna [77]

Answer:

You would have $1,251 more money in second city bank than the first city bank.

Explanation:

First city bank pays 7% simple interest.

Interest = (PRT)/100

Interest = (6000 * 7 * 9)/100 = 378000/100 = $3,780

Amount in first city bank after 9 years = 6000 + 3780 = $9,780

The second city bank pays 7% interest compounded annually, so we would find the amount after 9 years.

P = $6,000

R = 7% = 7/100 = 0.07

T = 9

A = P(1 + R) ^ {t}\\

A = 6000(1 + 0.07)^ {9}\\

A = 6000(1.07)^{9}\\

A = 6000 * 1.838459212420\\

A = 11030.75527452\\

A = 11031

Amount after 9 years in second city bank = $11,031

Difference between first city bank and second city bank: 11031 - 9780 = 1251.

8 0
3 years ago
Which situation shows OSHA's three-pronged approach to improving safety?
ra1l [238]
D is the correct answer according to AREA Alabama Electric Co-ops
3 0
3 years ago
Read 2 more answers
After describing herself to the personnel director during a job interview, Jane added that she liked to attend formal affairs. A
Lemur [1.5K]
<h2>According to Allport, this preference is an example of a <u>Secondary trait</u></h2>

Explanation:

There are 3 types of traits.

1. Cardinal traits:

  • This is the dominating traits
  • The person can be found by the qualities

2. Secondary traits:

  • This is closely related to attitudes
  • This is also related to preferences of a human
  • This would differ from person to person
  • This might change according to the situation.

3. Central traits:

  • This forms the base for the personality development
  • This would be meaningful
  • Central traits can be polite, helping, anxiety, etc.
5 0
3 years ago
Read 2 more answers
The following budget information is available for the Arch Company for January Year 2: Sales $ 860,000 Cost of goods sold 540,00
igomit [66]

Answer and Explanation:

The computation of the total budgeted selling and administrative expenses is shown below;

Utilities expense $2,800

Administrative salaries $100,000

Sales commissions 5 % of sales i.e. 5% of $860,000  $43,000

Advertising $20,000

Depreciation on store equipment $50,000

Rent on administration building $60,000

Miscellaneous administrative expenses $10,000

total budgeted selling and administrative expenses $285,800

3 0
3 years ago
Mona sets up a business consulting firm in which the employees are motivated because they find their work interesting and creati
gayaneshka [121]

Answer:

Letter C is correct. <em>A firm that relies on high output controls to tap into intrinsic motivation.</em>

Explanation:

By carefully selecting the employees of his consulting firm, Mona ensures that each employee's expected competency and skills profile has been met through rigorous selection, which enhances the chances that operational strategies will be more widely deployed and accepted effective.

By setting the expected results, but letting the employees themselves define how to achieve them, it generates an intrinsic motivation, one that generates internal feelings in the individual to want to achieve personal goals, objectives and projects that motivate and stimulate them.

4 0
3 years ago
Other questions:
  • What will be the result when managers use new forms of organizing?
    15·1 answer
  • _______ refer to government agencies and industry trade groups that help identify the skills that local employers require and wo
    15·2 answers
  • Last year Susana's mother, Maria, suffered from a heart attack and is no longer capable of caring for herself. Maria made arrang
    8·1 answer
  • Link Company uses a process cost system and the weighted average method. During the year the company completed 1,300 units of pr
    15·1 answer
  • According to the FCPA, U.S. managers are criminally liable Question 5 options: a) Only for bribes paid in the U.S. and not in ot
    13·1 answer
  • Annuity due.   Reginald is about to lease an apartment for 12 months. The landlord wants him to make the lease payments at the s
    12·1 answer
  • Goose Corporation has a basis of $3,340,000 in the stock of Swift Corporation, a wholly owned subsidiary acquired 30 years ago.
    6·1 answer
  • 20. (EFM12c) How are market prices set?
    14·1 answer
  • When a person at a lower level skips a level in the organization chart and consults his or her boss's boss, that person is said
    7·1 answer
  • Those who lie to others can begin to perceive the recipients of the lies as less honest and trustworthy. This phenomenon is term
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!