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3 years ago

Which measure of downside risk predicts the worst loss that will be suffered with a given probability

Business

1 answer:

Neporo4naja [7]3 years ago

4 0

Answer: C. value at risk

Explanation:

Value at Risk allows for risk to be measured and by extension controlled as it works by measuring the worst loss that can be suffered by a project, company or portfolio over a given period and given a certain probability.

It is the favorite of financial institutions like commercial banks as they are able to find out just how much losses they face when investing or loaning money out.

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Ethier Enterprise has an unlevered beta of 1. Ethier is financed with 55% debt and has a levered beta of 1.1. If the risk free r

tresset_1 [31]

Answer:

The correct answer is 0.4%.

Explanation:

According to the scenario, the computation for the given data are as follows:

If no debt, then required return can be calculated by using following formula:

Required return ( no debt) = Risk free rate + Unlevered Beta × Market risk premium

= 6% + 1 × 4%

= 0.06 + 0.04

= 0.10 or 10%

If debt, then required return can be calculated by using following formula:

Required return ( with debt) = Risk free rate + levered Beta × Market risk premium

= 6% + 1.1 × 4%

= 0.06 + 0.044

= 0.104 or 10.4%

So, extra premium required = 10.4% - 10% = 0.4%

6 0

3 years ago

Who is primarily responsible for the people who own the company stock?

Gnesinka [82]

Answer:

The people who buy the stock

Explanation:

I'm not sure but that's my best guess considering they bought it and would more than likely have to sign a contract of liability.

3 0

3 years ago

It is still customary in u.s. society for a bride to accept her husband's last name and for the bride's family to pay for the we

Ksivusya [100]

<span>The customs of a bride taking her husband's last name and her family paying for the wedding represents a patriarchal line of authority. In a patriarchal line of authority, the man is considered the head of a family and descendants trace their heritage back through his line.</span>

6 0

2 years ago

It costs Waterway Industries $28 of variable costs and $14.40 of allocated fixed costs to produce an industrial trash can that s

Georgia [21]

Answer:

Special request income 33,000

Explanation:

special request:

3000 units x $39 = 117,000

variable cost:

3000 units x $28 = 84,000

<u>Contribution margin 33,000</u>

special cost: <em>none</em>

additional fixed cost: <em>none</em>

Special request income 33,000

Notice:

Non additional shipping or setup cost is request for the order.

Non increase in fixed cost due to excess capacity.

If any of this concept do inccur in additional cost, it should be relevant as well in the calculations.

7 0

3 years ago

Children aged birth to 18 months do not consistently show safety awareness

Kamila [148]

Children aged birth to 18 months do not consistently show safety awareness and cannot reliably demonstrate knowledge of safe choices. So, this statement is true.

<h3>What do you mean by children?</h3>

Children refer to the young human being who is below the age of puberty or below the age of the majority.

Children aged birth to 18 months do not consistently show safety awareness and cannot reliably demonstrate knowledge of safe choices.

Therefore, the above statement is true.

Learn more about children here:

brainly.com/question/11364001

#SPJ1

4 0

2 years ago