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Alexxandr [17]
3 years ago
11

An investment strategy has an expected return of 21 percent and a standard deviation of 15 percent. Assume investment returns ar

e bell shaped. a. How likely is it to earn a return between 6 percent and 36 percent?
Business
1 answer:
Oxana [17]3 years ago
5 0

Answer:

68%

Explanation:

Given :

Mean, μ = 21

Standard deviation, σ = 15

Recall :

Zscore = (x - μ) / σ

P(Z =(x - μ) / σ) - P(Z =(x - μ) / σ)

x = 6 and x = 36

P(Z =(36 - 21) / 15) - P(Z =(6 - 21) / 15)

P(Z = 1) - P(Z = - 1)

Using the Z probability calculator :

P(Z = - 1) = 0.15866

P(Z = 1) = 0.84134

0.84134 - 0.15866

= 0.68268

= 0.68

= 68%

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marshall27 [118]

Answer:

The remaining useful life of the asset is = 10 - 3 = 7 years

Explanation:

The straight line method of depreciation charges a constant depreciation expense through out the useful life of the asset. The formula for depreciation expense under this method is,

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Plugging in the values for depreciation expense per year, cost and salvage value, we can calculate the total expected life of the asset.

5000 = (53000 - 3000) / estimated useful life of the asset

estimated useful life of the asset = 50000 / 5000

estimated useful life of the asset = 10 years

As the accumulated depreciation  balance is of 15000, the depreciation for 15000/5000 = 3years has been charged.

The remaining useful life of the asset is = 10 - 3 = 7 years

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2 years ago
Assume a $1,000 Treasury inflation-protected bond has a 2 percent coupon and a face value at issuance of $1,000. The reference C
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Answer:

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6 0
3 years ago
The following facts apply to the pension plan of Culver Inc. for the year 2017. Plan assets, January 1, 2017 $495,100 Projected
tiny-mole [99]

Answer and Explanation:

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                      General Journal entries

Particulars             Annual pension    Cash    Pension Assets/

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Service cost             $43,700 Dr.

Interest cost              $39,608 Dr.

                              (495,100 × 8%)

Actual return             $52,100 Cr.

Contributions                                       $26,600 Cr.

Journal Entry 31 Dec  $31,208 Dr.      $26,600 Cr.   $4,608 Cr.

Balance 31 Dec 217                                                      $4,608 Cr.

                                       Memo record

                                 Projected benefit obligation        Plant assets

Balance Jan 1 2017     $495,100 Cr.                                 $495,100 Dr.

Service cost                 $43,700 Cr.

Interest cost              $39,608 Cr.

                              (495,100 × 8%)

Actual return                                                                    $52,100 Dr.

Contributions                                                                  $26,600 Dr.

Benefits                    $36,500 Dr.                                   $36,500 Cr.

Balance 31 Dec 217    $541,908 Cr.                                 $537,300 Dr.

4 0
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koban [17]

Answer:

B. Sending accounts receivable confirmations.

4 0
3 years ago
Problem 4-4 Calculation of Gain or Loss (LO 4.3) Jocasta owns an apartment complex that she purchased 6 years ago for $750,000.
NemiM [27]

Answer:

$671,300

Explanation:

The calculation of adjusted basis in the building is shown below:-

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= $800,000 - $128,700

= $671,300

Therefore for computing the adjusted basis we simply add original cost of the property with cost of capital improvements and deduct depreciation claimed.

5 0
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