1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
klemol [59]
3 years ago
13

The rate of return on the common stock of Flowers by Flo is expected to be 14 percent in a boom economy, 8 percent in a normal e

conomy, and only 2 percent in a recessionary economy. The probabilities of these economic states are 20 percent for a boom, 70 percent for a normal economy, and 10 percent for a recession. What is the standard deviation of returns for this investment? Round to the nearset hundredth percent. Answer in the percent format. Do not include % sign in your answer (i.e. If your answer is 4.33%, type 4.33 without a % sign at the end.)
Business
1 answer:
FinnZ [79.3K]3 years ago
7 0

Answer: The standard deviation of the stock is 3.23 percentage

Explanation:

First we shall calculate the epected weighted average return of the stock.

We shall multiply the probability of the scenario with its expected return and then take the sum of the expected returns of different scenarios,

E(x) = (0.2 x 14%) + (0.7 x 8%) + (0.1 x 2%)

E(x) = 8.6%

We shall use the follwing formula to calculate the Variance of the stock,

σ²(x) = ∑ P(x_{i}) × [x_{i} - E(r)]²

σ²(x)  = (0.2) (0.14 - 0.086)² + (0.7) (0.08 - 0.086)² + (0.1) (0.02 - 0.086)²

σ²(x) = 0.001044

To find the standar deviation,

σ(x) = \sqrt{0.001044}

σ(x) = 0.0323109

in percentage it would be 3.23%

You might be interested in
The setup time for a batch of 250 products is 30 minutes while the production time is 5 minutes for each product. If the batch s
kramer

Answer:

d. Decrease by 0.045 minutes

Explanation:

<u>First Case</u>  

Time per unit for 250 batch size = (30 / 250) + 5 minutes

Time per unit for 250 batch size = 5.12 minutes

<u>Second case</u>

Time per unit for 250 batch size = (30 / 400) + 5 minutes

Time per unit for 250 batch size = 5.075 minutes

The decrease in manufacturing time = Old-time - New time  = 5.12 - 5.075  =  0.045 minutes . So, it Decrease by 0.045 minutes

7 0
3 years ago
You purchase another company for $50m. The company you purchase has assets with a fair value of $75m and liabilities with a fair
Crazy boy [7]

Answer:

b. $5m

Explanation:

If we purchase another company for $50m and the company you purchase has assets with a fair value of $75m and liabilities with a fair value of $30m. The amount of goodwill we should record in this transaction is: $5m

Goodwill upon acquisition of companies is derived by subtracting the fair value of NET ASSETS from the TOTAL CONSIDERATION (i.e the price paid to acquire the company)

In the scenario, the value of Net Assets is the value of the fairvalue of the assets less the fair value of the liabilities which is $75 - $30 = $45

While the Total Consideration = $50

Therefore Goodwill = $50m - $45m = $5m

5 0
3 years ago
​Apple has made a success from anticipating what consumers would want in new technological advances, convenience, and ease of us
Nady [450]

Answer:

core competency

Explanation:

Based on the information provided within the question in regards to the situation at hand it can be said that the iPad was a core competency for Apple. This term refers to the use of a company's resources and skills to create something in order to set it apart and give the company a competitive advantage in a market. Which is exactly what the iPad did for Apple.

If you have any more questions feel free to ask away at Brainly.

7 0
3 years ago
Job 148 requires $12,000 of direct materials, $6,700 of direct labor, 550 direct labor hours, and 270 machine hours. It also req
taurus [48]

Answer:

b. $26,740

Explanation:

The computation of the total amount of overhead allocated is shown below:

overhead allocated is

= (actual direct labor hour × overhead rate per direct labor hour) + (Actual machine hour × overhead rate per machine hour)  

= (550 × 28) + (270 × 42]

= $15,400  + $11,340

= $26,740

hence, the total amount of overhead allocated is $26,740

6 0
2 years ago
Some companies may restrict what types of perfume or cologne may be worn in their workplace.
Viefleur [7K]
True there are some companies that don't allow you to ware some times of perfume or cologne 
8 0
2 years ago
Read 2 more answers
Other questions:
  • Sherrod, Inc., reported a pretax accounting income of $76 million for 2011. The following information relates to differences bet
    5·1 answer
  • In the country of Mashwen, the state owns key industries such as energy and transportation. The rest of the industries are priva
    10·1 answer
  • The business judgment rule provides corporate officers and directors protection when Multiple Choice the liability is a result o
    11·1 answer
  • Cheryl is taking classes at an institution that offers face-to-face time with her instructor and classmates and also online time
    10·1 answer
  • Discuss the optimal method for procuring inputs that have well-defined and measurable quality specifications and require highly
    7·2 answers
  • A person who teaches you coaches you and helps you to advance in your career is known as a?
    11·1 answer
  • You are given the following information for Bowie Pizza Co.: Sales = $64,000; Costs = $30,700; Addition to retained earnings = $
    15·1 answer
  • A successful total quality management (TQM) program requires
    6·1 answer
  • For february, sales revenue is $700,000; sales commissions are 5% of sales; the sales manager's salary is $96,000; advertising e
    13·1 answer
  • CULLUMBER COMPANY
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!