Answer: 0.000903
Explanation:
Expected return is the sum of the probability that the other returns will happen.
= (13% * 83%) + (5% * 17%)
= 10.79 % + 0.85%
= 11.64%
Variance = ((Return during boom - Expected return)²*probability of boom) + ((Return during recession - Expected Return)²*probability of recession)
Variance = ((13% -11.64%)² * 83%) + (5% - 11.64%)² * 17%)
= 0.0001535168 + 0.0007495232
= 0.000903
Answer:
$127,400
Explanation:
Gross profit ratio = [(sale - cost) ÷ sale price] × 100
= [($5,000,000 - $3,700,000) ÷ $5,000,000] × 100
= 0.26 × 100
= 26%.
Gross profit on down payment is recognized in 2019:
= Down payment × Gross profit ratio
= $490,000 × 26%
= $127,400
The statement "<span>Independent risks can be diversified by holding a large number of uncorrelated assets with independent risks." is true.
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Answer:
C = 11,420.7405
Explanation:
Loan for 37,000 at 9% in four annual payment
We have to calculate the cuota of an annuity
where rate = 0.09
time = 4
and present value is the 37,000 we receive today
C = 11,420.7405
Answer: I would buy the bike helmet.
Explanation:
The bike helmet is needed, but the CD is only wanted. Therefore, it would be smarter to buy the bike helmet and invest in buying the CD later.
