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lidiya [134]
3 years ago
15

A stock has a correlation with the market of 0.49. The standard deviation of the market is 25%, and the standard deviation of th

e stock is 33%. What is the stock's beta?
A.) 1.55
B.) 0.65
C.) 0.35
D.) 0.37
Business
1 answer:
olasank [31]3 years ago
4 0

Answer:

Stock's beta  = 0.65 (Approx)

Explanation:

Given:

Correlation = 0.49

Standard deviation of stock (SDs) = 33% = 0.33

Standard deviation of market  (SDm) = 25% = 0.25

Find:

Stock's beta

Computation:

Stock's beta = Correlation(SDs) / SDm

Stock's beta = 0.49 (0.33) / 0.25

Stock's beta  = 0.65 (Approx)

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Using percentages or ratios based upon unforeseen differentials in prices, Forward Pricing Rates Agreements (FPRAs) protect the
krok68 [10]

Rates for corporate outings is NOT an example of an FPRA rate

Explanation:

The FPRA is an agreement between an entrepreneur and a governmental agency in which some indirect charges are determined over a set period of time. All such rates are price forecasts used for cost agreements and contract changes.

By using an FPRA the contracting system can be accelerated by removing the need for audit and analysis of rates. The Contracting Officer (COO) oversees the prices of the contracting party. The ACO should always be asked any questions about the prices. After a FPRA is reached, a copies of the agreement should always be provided for in any ensuing proposal.

6 0
3 years ago
On July 15, 2016, you convert 650,000 U.S. dollars to Japanese yen in the spot foreign exchange market and purchase a six-month
Mice21 [21]

Answer:

The question is not complete:

On July 15, 2016, you convert 650,000 U.S. dollars to Japanese yen in the spot foreign exchange market (¥104.91/$) and purchase a six-month forward contract ($0.0095320/¥1) to convert yen into dollars. How much will you receive in U.S. dollars at the end of six months? (Round your answer to 2 decimal places. (e.g., 32.16))

The sum of $650,001.38  would be received in six months

Explanation:

In the first place by buying the yen in the spot market on July 15 ,2016, the amount of yen is computed thus:

$650,000 was at (¥104.91/$) ,which implies that each $ was exchanged for ¥104.91

yen received =$650,000*104.91/1

                       = ¥ 68,191,500.00  

The six month forward contract outcome is as follows:

($0.0095320/¥1)

each Yen was exchanged $0.0095320

dollars received= ¥ 68,191,500.00 *0.0095320/1

                          =$650,001.38  

3 0
3 years ago
A manuscript is sent to a typing firm consisting of typists A, B and C. If it is typed by A, then the number of errors made is a
spin [16.1K]

Answer:

(a) E(X) = 3

(b) Var(X) = 12.1067

Explanation:

(a) E[X]

E[X]T = E[X]T=A + E[X]T=B + E[X]T=C

         = (2.6 + 3 + 3.4)/3

         = 2.6 (1/3) + 3(1/3) + 3.4(1/3)

         = 2.6/3 + 1 + 3.4/3

         = 3

(b) Var (X) = E[X²]−(E[X])²

Recall that if Y ∼ Pois(λ), then E[Y 2] = λ+λ2. This implies that

E[X²] = [(2.6 + 2.6²) + (3 + 3²) + (3.4 + 3.4²)]/3

         = (9.36 + 12 + 14.96)/3

         = 36.32/3

         = 12.1067

Var(X) = E[X²]−(E[X])²

          = 12 - 3²

          = 12.1067 - 9

          = 3.1067

8 0
3 years ago
A manager at jcpenney discovers that dillard's has reduced the price of its children's levi's from $31.99 to $24.99, according t
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<span>1.      </span>Premium pricing

<span>2.      </span>Penetration pricing

<span>3.      </span>Economy pricing and

<span>4.      </span>Skimming pricing

Premium pricing and skimming strategy both use a high price while penetration pricing and economy pricing use a low price. <span>

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Why are people engaged in business?? Write in points
Sladkaya [172]

Answer:

they are able to set their own hours and policies.

Establish prices.

Mall Critical decisions on how to operate the company.

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