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Iteru [2.4K]
3 years ago
13

A project has a 0.62 chance of doubling your investment in a year and a 0.38 chance of halving your investment in a year. What i

s the standard deviation of the rate of return on this investment? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Business
1 answer:
Rasek [7]3 years ago
6 0

Answer: 72.8%

Explanation:

Doubling my investment would mean increasing by 100% so that is the first return.

Halving my investment would mean reducing it by 50% so the second return is -50%.

Expected return is a weighted average based on the probabilities of the returns and is calculated as:

= (0.62 * 100%) + (0.38 * -50%)

= 0.43

Variance = (0.62 * (100% - 0.43)²) + (0.38 * (-50% - 0.43)²)

= 0.201438 + 0.328662

= 0.5301

Standard deviation = √0.5301

= 72.8%

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Ostrovityanka [42]

A firm's expected revenues and expenses are what should be included in a firm's business model.

<h3>What is a business model?</h3>

A business model is document that contains processes and procedures of how a company would operate.

This document is important for effective organization control and also assist coordinate business relationships amongst stakeholders

Learn more about business model here: brainly.com/question/1171429

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8 0
2 years ago
Point Company paid $4,000 cash to purchase a new machine. The company also paid $500 cash for an initial training cost that was
avanturin [10]

Answer:

Explanation:

The journal entry is shown below:

Machine A/c Dr $4,500

       To Cash A/c $4,500

(Being machinery is purchased for cash)

The total amount of machinery purchased cost is shown below:

= Purchase cost of machine + training cost

= $4,000 + $500

= $4,500

Since the machine is purchased for cash so we debited the machine account and credited the cash account as cash

6 0
4 years ago
When it is necessary to inform a customer about a delay in their order , the proper communication format should be?
Arlecino [84]
I would say to inform them professionally with a phone call and/or email. 
8 0
3 years ago
Examples of items deducted to determine an employee's net pay are
lapo4ka [179]

All of these are correct. Each can be deducted to determine net pay.

6 0
3 years ago
Read 2 more answers
Hadley, a business researcher, believes that organizations will have to spend a lot of money on employee health care in the futu
jeka57 [31]

Answer: A. The fastest-growing share of the workforce is at least 55 years old.

Explanation:

The options to the question are:

A. The fastest-growing share of the workforce is at least 55 years old.

B. The fastest-growing age group is workers 16-25, who are prone to having accidents.

C. The largest proportion of the labor force is expected to be in the 16- to 25-year age group.

D. The total cost of labor in the United States will decrease considerably in the near future.

E. The labor force is expected to grow at a greater rate by 2026 than at any other time in U.S. history.

From the question, we are informed that Hadley, a business researcher, believes that organizations will have to spend a lot of money on employee health care in the future while Owen argues that organizations will not have to increase their spending on employee health care benefits.

The statement that weakens Owen's argument is that the fastest-growing share of the workforce is at least 55 years old. This simply means there are more old people incthe the workforce and that means there'll be more tendency for them to go to hospitals when ill compared to youths who'll be stronger.

5 0
3 years ago
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