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wolverine [178]
3 years ago
12

You observe a portfolio for five years and determine that its average return is 12.5​% and the standard deviation of its returns

in 19.5​%. Would a​ 30% loss next year be outside the​ 95% confidence interval for this​ portfolio?
Business
1 answer:
mihalych1998 [28]3 years ago
8 0

Answer:

Yes, you can be confident that the portfolio will not lose more than 30% of its value next year

Explanation:

In this question , the average return of portfolio is 12.5% and the standard deviation is 19.5%. It is estimated that there will be 30% loss next year. The confidence interval is 95%.

Range = Average return ± 2 x Standard deviation Low aid = 12.5% - (2 x19.5%) =12.5% -39% = -26.5%

High end = 12.5% +(2 x19.5%) =12.5%+39% = 51.5%

Thus, the low end is

26.5%

The range of return at 95% confidence interval is -26.5% to 51.5%

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Answer:

The correct answer is letter "D": Development of brownfields in urban areas.

Explanation:

In urban planning, sustainable development refers to continuous activities that can be performed during extended periods of time. They are the result of repeated patterns of individuals who, sometimes unconsciously, provoke more and more individuals to repeat their actions.

Under such a scenario, <em>the development of brownfields in urban areas is the result of building more department complexes in the cities because of the increasing need for renting and selling houses as a result of the increasing population growth.</em>

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3 years ago
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The returns on the Bledsoe Small-Cap Fund are the most volatile of all the mutual funds offered in the 401(k) plan. Why would yo
aalyn [17]

Answer:

The yields are perhaps the most unpredictable for the small cap fund since the securities in this account are the most risky. It does not mean that the fund is awful, only that the danger is greater, and thus the overall return is greater.If you are prepared to accept the extra risk in expectancy of a greater return, you should like to put money in this fund. The increased costs for this Fund will be anticipated.Small cap funds typically have higher spending due largely to greater operating costs, along with lower resource analysis.

7 0
3 years ago
It costs Bonita Industries $12 of variable and $5 of fixed costs to produce one bathroom scale which normally sells for $35. A f
Serga [27]

Answer:

There will be an increase of $6,200 , If the special order is accepted

Explanation:

For computing the net income effect first we have to find out the net income per scale which is a difference between offer purchase price and variable cost per unit

In mathematically,

Net income = Offer purchase price - variable cost per unit

where,

Offer purchase price is $35

And, the variable cost is $12 per unit plus it incur special shipping charges which is also a part of the variable cost.

So, total variable cost = variable cost per unit + Special shipping charges per scale

=  $12 + $1

= $13

So, Net income is

= $15 - $13

= $2 per unit

Now for producing the 3100 scales, the net income should be multiply with the production unit

= Net income × Production unit

= 3,100 × 2

= $6,200

Fixed cost is fixed whether the production level changes or not. Thus, it is not be considered.

Hence, there will be an increase of $6,200 , If the special order is accepted

6 0
3 years ago
Business provided travel services worth R11800 to customers who settled the amount in cash
netineya [11]
That's a statement.

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3 years ago
Clarissa wants to fund a growing perpetuity that will pay $6000 per year to a local museum, starting next year. She wants the an
likoan [24]

Answer:

She needs $150,000 to fund this perpetuity.

Explanation:

In this question we need to find the present value of this perpetuity. Because this is a growing perpetuity we will need to use the formula of present value of a growing perpetuity.

PV of growing perpetuity = Payment/ R-G

The payment is the current payment the perpetuity will pay which is 6,000, R is the interest rate which is 10% and G is the growth rate of the perpetuity which is 6%. Now we will input these values in the formula in order to find the present value of the perpetuity.

6,000/0.1-0.06

=6,000/0.04

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4 0
3 years ago
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