It can be deduced that the expected rates of return of stocks A and B are 13.2% and 7.7% respectively.
<h3>
How to calculate the expected
rates of return</h3>
E(RA) = 0.1 (10%) + 0.2 (13%) + 0.2 (12%) + 0.3 (14%) + 0.2 (15%)= 13.2%
E(RB) = 0.1 (8%) + 0.2 (7%) + 0.2 (6%) + 0.3 (9%) + 0.2 (8%)= 7.7%
Therefore, the expected rates of return of stocks A and B are 13.2% and 7.7% respectively.
The standard deviation will be calculated thus:
Var(RA) = [0.1 (10%-13.2%)² + 0.2 (13%-13.2%)² + 0.2 (12%-13.2%)² + 0.3 (14%-13.2%)² + 0.2 (15%-13.2%)2 ] 1/2
= 1.5%
Var(RB) = [0.1 (8%-7.7%)² + 0.2 (7%-7.7%)² + 0.2 (6%-7.7%)² + 0.3(9%-7.7%)² + 0.2 (8%-7.7%)² ] 1/2
= 1.1%
Therefore, the standard deviation of stocks A and B are 1.5% and 1.1% respectively.
Learn more about rate of return on:
brainly.com/question/25821437
Answer:
Degree of operating leverage= 1.4
Explanation:
Giving the following information:
Sales $6,160,000
Variable costs (4,620,000)
Contribution margin $1,540,000
Fixed costs (440,000)
Operating income $1,100,000
<u>To calculate the degree of operating leverage, we need to use the following formula:</u>
degree of operating leverage= Total contribution margin / operating income
degree of operating leverage= 1,540,000 / 1,100,000
degree of operating leverage= 1.4
Answer:
Statement 4. is absolutely wrong
Explanation:
Attributes are specified by the class's methods. They are rather defined in classes by variables.
The correct answer would be, Compromise.
After a lengthy discussion, it was decided that the budget would be hired for the next year. In this situation, Compromise strategy of conflict management is used.
Explanation:
In simple words, Conflict Management is the management of Conflict between two parties, or between two issues. In this process, the negative aspects of the issue are lowered while positive aspects are being highlighted.
Compromise is that strategy of Conflict Management in which a settlement is made below the desired standards in order to resolve the conflict.
So when temporary faculty is hired in the school instead of the need of permanent faculty, due to the shortage of budget, Compromise Strategy of Conflict Management is being used.
Learn more about Conflict Management at:
brainly.com/question/12441613
#LearnWithBrainly
Answer:
Yes. Nicoula is required to pay tax including the tips
Explanation:
Since Nicoula received $1,200 in unreported tips during 2016 and owes Social Security and Medicare taxes on these tips. Her total income for the year, including the tips, is $4,300.
Nicoula is required to pay an income tax return for 2016 because Tips are considered to be part of employee wages and or salaries, hence employers are required by law to withhold and pay to the IRS payroll taxes on the tips employees report to them each month.
It is mandatory to report on the tax return, the amount of any Social Security and Medicare taxes Nicoula has failed to pay on her 'tip income'.
