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musickatia [10]
3 years ago
6

You own 50 shares of Auto Corporation that you purchased for $30 a share. The stock is currently selling for $50 a share, and yo

u placed a stop loss order at $45. If the stock price drops to $35 a share what is your return on this investment?
Business
1 answer:
timofeeve [1]3 years ago
3 0

Answer: 50%

Explanation:

Purchasing price for each share = $30

Stop loss order placed at $45 for each share.

If the stock price drops to $35, the benefit earned = $ (45-30)= $15

Now, the return on this investment = (benefit earned) ÷(Purchasing price)x 100%

= (15)÷(30)x100%

= 0.5 x 100%

= 50%

So,  your return on this investment = 50%

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The returns of ABC Company and the market are listed below. Compute the beta for ABC Company stock (Hint: Think rise over run).
PilotLPTM [1.2K]

Beta = Covariance/Variance where: Covariance=A measure of an investment's return in relation to the market Variance is a measurement of how the market deviates from its mean.

Compute the beta for ABC Company stock ?

The standard deviation of returns for the asset could be divided by the standard deviation of returns for the benchmark to determine beta. The correlation between the security's returns and the benchmark's returns of 32.21 percent is multiplied to arrive at the final number.

Given that AAPL's beta of 0.6035 suggests the stock theoretically experiences 40 percent less volatility than SPY, AAPL would be regarded as being less volatile than SPY in this situation.

A stock with a beta greater than 1.0 fluctuates more than the market over time. A stock's beta is less than 1.0 if it moves less than the market. High-beta equities typically carry higher risks but also have a bigger potential reward. Although they carry less risk, low-beta equities often offer lesser returns.

Because of this, beta is frequently employed as a risk-reward ratio, which aids investors in deciding how much risk they are ready to accept in order to reap the potential rewards. It's crucial to take stock price volatility into account when determining risk. Beta is a useful proximate for risk if you view of risk as the likelihood that a stock would depreciate in value.

Beta = Covariance/Variance where: Covariance=A measure of an investment's return in relation to the market Variance is a measurement of how the market deviates from its mean.

Learn more about beta company stock here:

brainly.com/question/15017110

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4 0
2 years ago
Wright Automobiles, a used car dealer, has to purchase soft drinks and snacks for the vending machines in the customer lobby. Th
worty [1.4K]

Wright Automobiles, a used car dealer, has to purchase soft drinks and snacks for the vending machines in the customer lobby. This buying situation demonstrates a <u>straight rebuy.</u>

<u></u>

A purchase in which the customer buys the same goods in the same quantity on the same terms from the same supplier.

Modified rebuy is a state of affairs wherein the client makes some adjustments within the order, and it could require some additional analysis or studies. straight rebuy: wherein the client reorders the identical products without seeking out data or thinking about different suppliers.

If your company is upset with a dealer's product and the procurement crew makes modifications to the order, you completed a changed rebuy. There are several motives for agencies to try this new requirement, excessive costs, suppliers, product adjustments, etc.

A buying scenario in which an individual or agency buys goods that have been bought previously, however, adjustments either the provider or a few other elements of the preceding order.

Learn more about straight rebuy here brainly.com/question/8530057

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3 0
2 years ago
Part U16 is used by Mcvean Corporation to make one of its products. A total of 13,000 units of this part are produced and used e
ad-work [718]

Answer:

Financial disadvantage of 138,600

Explanation:

\left[\begin{array}{cccc}&produce&buy&Differential\\$Purchase&&-447,000&-447,000\\$Avoidable\: Cost&-283,400&0&283,400\\$Unavoidable\: Cost&-114,400&-114,400&0\\$Total Cost&-397,800&-561,400&-163,600\\$additional segment&0&25,000&25,000\\$Net  Effect&-397,800&-536,400&-138,600\\\end{array}\right]

The allocate cost and teh depreciation cost will be unavoidable, so should be considered as a cost for the purchase option

Also the inocme from teh additional segment is only considered for the purchase option

<u>The avoidable cost will be:</u>

Direct Materials

Direct Labors

Variable overhead

Supervisor

Thse cost are zero in the purchase escenario

4 0
3 years ago
A major reason why it is difficult to lower the barriers to free trade is A. the loss of jobs without any gain of jobs from free
Thepotemich [5.8K]

Answer:

B) the uneven distribution of gains and losses from free trade.

Explanation:

One of the most important reasons why governments impose trade barriers is to protect domestic jobs (and domestic industries). We are part of a society (country), and society's most important component is people, not money. Generally the economic gains of free trade are larger than the economic losses, but the economic losses hurt the most.

Imagine if no trade barriers actually existed, how many millions of jobs would be lost in the US. Trade barriers are nothing new, the current president didn't invent them. He just incinerated them.

How does a leader tell the people that 10 or 20 million must lose their jobs and probably will not be able to find any similar jobs in the future just because the rest of society will benefit from cheaper products. The lives of 20 million households (50-80 million people) would be destroyed, while 280 million people would benefit.

The amount of harm done to the people that lose their jobs is much greater than any individual benefit.

6 0
3 years ago
**ECONOMICS** Which action would most likely limit a person's success in the workplace?
Anna11 [10]

Answer:

D

Explanation:

if you refuse to tell others the problem then you risk everything

5 0
3 years ago
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