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dem82 [27]
3 years ago
12

The stock of Business Adventures sells for $40 a share. Its likely dividend payout and end-of-year price depend on the state of

the economy by the end of the year as follows:
Dividend Stock price
Boom $2.00 $50
Normal economy $1.00 $43
Recession $0.50 $34

a) Calculate the expected holding-period return and standard deviation of the holding-period return. All three scenarios are equally likely.

b) Calculate the expected return and standard deviation of a portfolio invested half in Business Adventures and half in Treasury bills. The return on bills is 4%.
Business
1 answer:
Maurinko [17]3 years ago
4 0

Answer:

Explanation:

a. Calculate the expected holding-period return and standard deviation of the holding- period return. All three scenarios are equally likely.

1/3 = 0.3333

Boom Holding Period Return - HPR

HPR =  = (50 – 40 + 2)/40 = 0.3

Normal HPR=(43 – 40 + 1)/40 = 0.1

Recession HPR = (34 – 40 + 0.5)/40 = -0.1375

Expected Return =(0.3333*0.3)+(0.3333*0.1)+(0.3333*-0.1375)=0.1+0.0333-0.0458 = 0.0875

Var(r) = sd^2 = sum of  p(s)[r(s)-E(r)]^2

Var(r) = (0.3333)[(0.3)-0.0875]^2 + (0.3333)[(0.1)-0.0875]^2  + (0.3333) +[-.1375-.0875]^2 =

Var(r)= 0.0151+ 0.0001 + 0.0169 = .0321

Sd(r)= sd square root = square root of 0.0321 = 0.1791

b. Calculate the expected return and standard deviation of a portfolio invested half in Business Adventures and half in Treasury bills. The return on bills is 4%.

Expected return = (0.5)(0.0875) + (0.5)(0.04) = 0.0438 + 0.02 = 0.0638

Sd = (0.5)(0.1791) = 0.0896

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A(n) _____ is central to individuals and organizations of all sizes and ensures that information can be shared across all busine
adoni [48]

Answer:

b. enterprise system

Explanation:

Enterprise System -

It is also known as enterprise resource planning ( ERP ) .

It is a type of cross - functional information system which give the organisation wide integration and coordination about the business process which enable to plan the efficiently the resources of the business .

Many organisation in recent times , adapt to alter some of the distinct data and information , with the help of a common or one system which can enable to help the activities of the business , such function are known as enterprise system .

hence , from the question , the correct term according to the given information is b. enterprise system.

4 0
3 years ago
determine the payback period for an investment. evaluate the acceptability of an investment project using the net present value
Fantom [35]

An investment is an asset or object received with the aim of producing earnings or appreciation. Appreciation refers to a boom in the value of an asset over the years.

That in shape is loose cash and a guaranteed go-back on your funding. you could start with as low as 1% of each paycheck, though it is an excellent idea to intention for contributing at least as a great deal as your business enterprise match. for instance, a not-unusual matching association is 50% of the first 6% of the profits you contribute.

Investors are understandably cautious. record-high inflation and back-to-back interest rate increases have all triggered volatility. The S&P 500 briefly fell into a undergo market on May 20, again on June 13, and for a 3rd time in September. however, all of that also shouldn't mean sitting out of the marketplace.

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4 0
1 year ago
Which describes the process by which assets or equipment decrease in value
JulsSmile [24]
Depreciation is the correct answer
4 0
2 years ago
Parker Pharmaceuticals is a corporation that employs over 400 workers. As the firm continues to grow, the need for discipline am
Virty [35]

Answer:

The following best supports a decision to use the progressive disciplinary action approach:

B) Parker wants an informal procedure for disciplining employees.

Explanation:

A disciplinary procedure is the way your employer deals with discipline when they believe that your conduct or performance is not up to the expected standard. Disciplinary procedures may involve something as simple as an informal chat, and escalate to involve letters, meetings and appeals

Informal disciplinary actions include: oral or written admonishments; letters of counseling, caution, instruction or warning, as well as letters of requirement.

These are the steps of progressive discipline actions:

Step 1: Verbal Counseling(s) A verbal counseling is generally the first step of progressive discipline.  

Step 2: Written Warning(s) A written warning is generally the second step of progressive discipline.

Step 3: Performance Improvement Plan (PIP).

Step 4: Termination of Employment.

In most cases, it is far better for the employer to resolve issues informally wherever possible. Depending on what the issue is, it may be appropriate to have an informal chat or verbal warning with someone rather than going through the process of issuing a formal warning.

The purpose of an informal meeting is to discuss issues which would not have an appropriate place in a formal meeting. They may be designed to make one of the participants feel more at ease and more free to speak their mind than they would in a more formal setting.

4 0
3 years ago
Current Attempt in Progress Swifty Corporation produces three versions of baseball bats: wood, aluminum, and hard rubber. A cond
jarptica [38.1K]

Answer:

None of the fixed costs are avoidable. Therefore the company now loses all the fixed costs and the positive contribution margin.

Explanation:

Giving the following information:

Wood Aluminum Hard Rubber

Total Sales $65000

Variable expenses (58000)

Contribution margin 7000

Fixed expenses  (22000)

Net income (loss) (15000)

Effect on income= -22,000 - 7,000= -29,000

None of the fixed costs are avoidable. Therefore the company now loses all the fixed costs and the positive contribution margin.

5 0
3 years ago
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