Discuss Basic elements of Organization structure?

What is the standard deviation of the returns on a stock given the following information? State of Economy Probability of State

Llana [10]

Answer:

3.28%

Explanation:

Calculation for the standard deviation of the returns on a stock

The first step is to find the Expected rate of return using this formula

Expected Return = E[R] = p1*R1 + p2*R2 + p3*R3

Let plug in the formula

Expected Return= 0.28*0.175 + 0.67*0.128 + 0.05*0.026

Expected Return = 0.049 + 0.08576 + 0.0013

Expected Return= 0.13606

Second step is to find the Variance using this formula

Variance = σ2 = p1*(R1-E[R])2 + p2*(R2-E[R])2 + p3*(R3-E[R])2

Let plug in the formula

Variance = σ2 = 0.28*(0.175-0.13606)2 + 0.67*(0.128-0.13606)2 + 0.05*(0.026-0.13606)2

Variance = 0.000424570608 + 0.0000435256119999998 + 0.00060566018

Variance= 0.0010737564

Last step is to find Standard Deviation of the returns on a stock

Note that the Standard Deviation is square-root of variance

Using this formula

Standard Deviation =√Variance

Let plug in the formula

Standard Deviation = σ =√ (0.0010737564)

Standard Deviation= 0.032768222411*100

Standard Deviation= 3.2768222411%

Standard Deviation =3.28% Approximately

Therefore the standard deviation of the returns on a stock will be 3.28%

4 0

4 years ago

As the price level falls a. people will want to hold more money, so the interest rate rises. b. people will want to hold more mo

icang [17]

Answer:

The answer is C.

Explanation:

As the general price level decreases or falls, people will want to hold less money, so the interest rate falls.

As price level falls, value of money decreases because a unit of money will more of goods or services.

During this period people will want to hold less money because of the decrease in value and the excess money will be deposited in banks.

With this, the banks have more money to lend out and this will make the bank to reduce its Interest rate.

8 0

3 years ago

Debt-to-equity ratio is:

Ahat [919]

Answer: calculated by dividing total liabilities by net worth.

Explanation:

The debt to equity ratio is used to know how credit worthy a company is. This is gotten by dividing the total liability of a company by the equity of the shareholder.

It should be noted that the debt t equity ratio isn't gotten dividing your assets by liabilities. Therefore, based on the information given above, the answer is A.

8 0

3 years ago

what is the fastest way to grow your account (in followers and likes) on social media? this doesn't have to be "right" just say

aivan3 [116]

Answer:

I think is just be nice like thier pics leave nice comments cause if ur nice to them they might think Oh that was nice I'm gonna follow them and just put cute pics and things that are trendy so people will see them and always stay nice and polite

Explanation:

7 0

3 years ago

Read 2 more answers

Hayduke Corporation reported the following results from the sale of 5,000 units in May: sales $300,000, variable costs $180,000,

dsp73

Answer:

4,444.44 units

Explanation:

For the computation of Number of units to be sold to earn target profit first we need to follow some steps which are shown below:-

Selling price per unit = Sales ÷ Number of units sold

= $300,000 ÷ 5,000

= $60

Variable cost per unit = Total variable cost ÷ Number of units sold

= $180,000 ÷ 5,000

= $36

Increase in selling price = $60 × 5%

= $3

New selling price per unit = $60 + $3

= $63

New contribution margin per unit = New selling price per unit - Variable cost per unit

= $63 - $36

= $27

Number of units to be sold to earn target profit = (Fixed cost + Target profit) ÷ Contribution margin per unit

= ($90,000 + $30,000) ÷ $27

= $120,000 ÷ $27

= 4,444.44 units

4 0

3 years ago