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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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When the allowance method of accounting for uncollectible accounts is used, then
Brums [2.3K]

Answer:

Bad debt expense is recorded in the same year as the credit sale.

Explanation:

Allowance method is generally refer to one of the ways for reporting the uncollectible or bad debt expense which results from a company selling the goods on credit.

This method is used for the process or procedure of uncollectible accounts receivable that records the estimate of the bad debt expense in the same accounting year to which is belongs as the sale. This method is used for adjust the accounts receivable appears on the balance sheet of the company.

4 0
3 years ago
1. The two primary goals of the progressive movement, as a whole, were to a. restore business competition and stimulate entrepre
Vinil7 [7]

Answer:

improve the quality of urban life and help immigrants adjust to American life.

Explanation:

The progressive movement was a period when the was social activism and political reforms accross America. It occurred between the 1820s to the 1920s.

Mainly the movement was aimed at resolving problems of industrialisation, urbanisation, immigration, and corruption.

This was the basis for direct democracy, and also they requested for regulation of monopolies through anti trust laws that promotes equality in competition.

5 0
3 years ago
Ramon incurred $83,100 of interest expense related to his investments this year. His investment income included $34,500 of inter
cestrela7 [59]

Answer:

$72,000

Explanation:

To calculate investment interest expense dedcution, we need to know the total investment income  & total investment interest expenses

Then there're 2 scenarios as followings:

  • If the investment interest expenses are less than the net investment income, the entire investment interest expense is deductible.
  • If the investment interest expenses are more than the net investment income, we can deduct the expenses up to the net investment income amount. The rest of the expenses are carried forward to next year.

In this example, Ramon's investment income is  $72,000 ($34,500 of interest and a $37,500 net capital gain on the sale of securities); is lower than his interest expenses of $83,100.

So Ramon is entiled to deduct $72,000 all the entire investment interest expense in current year

7 0
3 years ago
If you are in a car accident cause by someone else who also has insurance, which type of insurance plan will not require you to
max2010maxim [7]
If you are in a car accident cause by someone else who also has insurance, the type of insurance plan that will not require you to pay out of pocket costs is liability insurance. If the car accident was not your fault and the person who caused the accident is also insured the claim should be paid by him under his coverage and your pocket will be safe as well as your insurance will not be affected.
7 0
3 years ago
A situation occurring when the value of a nation’s exports exceeds the value of its imports is called a trade surplus.
Dafna11 [192]

Answer:

hey matthew

Explanation:

Is TRUE.

Trade Surplus. A trade surplus is an economic measure of a positive balance of trade, where a country's exports exceed its imports. A trade surplus occurs when the result of the above calculation is positive. A trade surplus represents a net inflow of domestic currency from foreign markets.

6 0
3 years ago
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