Disadvantage of multiple chain store?

Consider 2 scenarios: Boom Economy and Normal Economy. The Boom economy has 30% chance of happening, while Normal economy has 70

natali 33 [55]

Answer:

A) Expected Return of Stock ABC = Probability of Boom * Return of ABC in boom+Probability of Normal * Return of ABC in norma

ER = 30% * 25% + 70% * 4% = 10.30%

Expected Return of Stock XYZ = Probability of Boom * Return of XYZ in boom+Probability of Normal*Return of XYZ in norma

ER = 30% * 10% + 70% * 6.5% = 7.55%

Variance of Stock ABC = 30% * (25%-10.30%)^2 + 70% * (4%-10.30%)^2 = 0.9261%

Variance of Stock XYZ = 30% * (10%-7.55%)^2 + 70% * (6.5%-7.55%)^2 = 0.02573%

Standard Deviation of ABC =0.9261%^0.5 = 9.62%

Standard Deviation of XYZ =0.02573%^0.5 = 1.60%

B) Coefficient of Variation of ABC=Standard Deviation of ABC/Expected Return of ABC =9.62%/10.30%=0.93

Coefficient of Variation of XYZ=Standard Deviation of XYZ/Expected Return of XYZ =1.60%/7.55%=0.21

Stock with less Coefficient of variation to be chosen as lower Coefficient of variation show lower risk in relation to the return.

Hence stock XYZ is best for investment.

C) Expected Return of Market =30% *12% + 70% * 5% = 7.1%

Variance of Market =30% * (12% - 7.1%)^2 + 70% * (5%-7.1%)^2 = 0.1029%

Covariance of Stock ABC and Market = 30% * (12% - 7.1%) * (25% - 10.30%) + 70%*(5% - 7.1%) * (4% - 10.30% )= 0.0030870

Beta of ABC = Covariance of Stock ABC and Market / Variance of Market

Beta ABC = (0.0030870 / 0.1029%) = 3.00

Covariance of Stock XYZ and Market =30% * ( 12% - 7.1%) * (10% - 7.55%) + 70% * (5% - 7.1%) * (6.50% - 7.55%) = 0.000515

Beta of Stock XYZ = Covariance of Stock XYZ and Market /

Variance of MarkeT

Beta XYZ = (0.000515 / 0.1029%) = 0.5

8 0

3 years ago

The management of Kawneer North America is considering investing in a new facility and the following cash flows are expected to

Over [174]

Answer:

6.34 years

Explanation:

Year Cash outflow Cash inflow Net cash flow Cumulative cash flow

1 ($1,900,000) $95,000 ($1,805,000) ($1,805,000)

2 ($550,000) $205,000 ($345,000) ($2,150,000)

3 $360,000 $360,000 ($1,790,000)

4 $485,000 $485,000 ($1,305,000)

5 $510,000 $510,000 ($795,000)

7 $595,000 $595,000 $395,000

8 $305,000 $305,000 $700,000

9 $255,000 $255,000 $955,000

10 $250,000 $250,000 $1,205,000

Payback period = 6 + 200,000/ 595,000

Payback period = 6 + 0.3361345

Payback period = 6.336134

Payback period = 6.34 years

So, the payback period of this uneven cash flow is 6.34 years.

3 0

2 years ago

A good marketing plan helps managers make strategic planning decisions and provides a framework for effective implementation and

m_a_m_a [10]

A good marketing plan helps managers make strategic decisions and provides a framework for effective implementation and control.

<h3>What are implementation and control?</h3>

One of many strategic controls available to the company to help direct the strategy's execution is implementation control. Implementation control aims to ensure that results are being delivered while maintaining strategy execution on course as planned.
The process of putting plans into practice to achieve the desired outcome is known as strategy implementation. In essence, it's the art of accomplishing things. Every organization's ability to carry out choices and crucial procedures effectively, consistently, and efficiently determine how successful it will be.
Implementation control typically establishes performance standards, assesses actual performance, and identifies the reasons why these standards weren't met. Implementation controls also include timelines, budgets, and milestones.
Security measures can also be categorized in different ways based on how they are implemented. Technical, managerial, and operational are the three main categories for implementation.

A good marketing plan helps managers make strategic decisions and provides a framework for effective implementation and control.

To learn more about implementation and control, refer to:

brainly.com/question/14273000

#SPJ4

3 0

1 year ago

A rightward shift in aggragate Demand (for US) can be caused by which of the following Increase in consumer waelth, increase in

Rudiy27

Answer:

Option A Increase in consumer wealth

Explanation:

The reason is that when the consumer wealth increases his purchasing power increases which enables him to opt to items which greater in value and also that the person starts satisfying his personal needs and wants which means that the person is spending more and if the person is spending more then the aggregate demand of the product and services will increase. Furthermore the increase in taxes, costs and value of US dollar decreases the demand because it increases the prices of the product and increase in price of the product or services decreases the demand of the product both in the domestic and international market. So the right option is A.

5 0

2 years ago

Plz post fun questions plz i need points plzzzzzzzzzzz

frez [133]

Answer:

Dun. Mark brainliest plz

Explanation:

4 0

2 years ago

Disadvantage of multiple chain store?​

Disadvantage of multiple chain store?