Does anyone else's parent threaten to abuse them when you do bad in school or is it just me?

Consider the following scenario analysis:

seropon [69]

Based on the scenario analysis on stocks and bonds, we know the following:

Treasury bonds will provide a higher return in a recession than in a boom.
The expected return of Bonds is 9.8% and that of stocks is 11.6%.
The standard deviation of Bonds is 9.24% and that of stock is 11.76%.

<h3>What does the scenario analysis on Bonds and Stocks show?</h3>

In a recession, Bond returns will be 15%. This is much higher than Bond returns in a boom of only 5%.

The expected return on bonds will be:

= ∑(Probability of Scenario x Returns in scenario)

= (0.30 x 15%) + (0.60 x 8%) + (0.10 x 5%)

= 9.8%

The expected return on stocks will be:

= (0.30 x -6%) + (0.60 x 18%) + (0.10 x 26%)

= 11.6%

Using a spreadsheet, you can input the expected returns of the stocks and the bonds to find the standard deviation to be 9.24% and 11.76%, respectively.

Find out more on stock expected returns at brainly.com/question/18724022.

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3 0

2 years ago

A two-step binomial tree is used to value an option on the Australian dollar (AUD). The strike price is 1.00 USD per AUD and the

ser-zykov [4K]

Answer:

a.) The proportional up movement , u, for the currency can be calculated using the following formula:

u = eStd Dev * Square root of t

u = e0.06*square root of 0.25

u = 1.0305

b.) Probability of up movement, p , = (a - d) / (u - d)

where a = ert where r = 0.025, t = 0.25

a = e0.025*0.25 = 1.0063

d = 1 / u = 1 / 1.3050 = 0.7663

p = (1.0063-0.7663) / (1.3050-0.7663)

p = 0.46

1-p = 1-0.46 = 0.54

c) Price of an American Call Option on the currency : we use binomial tree for that , as follows: The amounts below line indicate the option price and figures above line indicate the underlying asset price which is 0.55555

3 0

3 years ago

The crunchy granola company is a diversified food company that specializes in all natural foods. the company has three operating

gogolik [260]

Based on the given entries, the condensed divisional income statements are:

Cereal Division Snack Cake Retail Bakeries

Sales 25,000,000 8,000,000 9,750,000

Cost of Goods <u> (16,670,000) (5,575,000) (6,795,000)</u>

Sold

Gross Profit 8,330,000 2,425,000 2,955,000

Operating Expenses <u> (7,330,000) (1,945,000) (2,272,500)</u>

Operating income <u> (1,000,000) (480,000) (682,500) </u>

The profit margins, Investment turnover, and ROI.

Cereal Division Snack Cake Retail Bakeries

Profit Margin 4 6 7

Investment Turnover 2.5 2 12

ROI 7 1.5 10.5

The management should go with Snack Cake as it has the highest Profit Margin.

<h3>What are the matrics and ratios for Crunchy Granola Company?</h3>

The condensed income statements will show all the divisions and their operating incomes in one statement as shown above.

The profit margin can be found as:

= Operating income / Sales x 100

The Return on Investment (ROI) is:

= Operating income / Invested assets x 100

Investment turnover can be found as:

= Sales / Invested assets x 100

Find out more on Return on Investment at brainly.com/question/26445145.

8 0

2 years ago

Anna and ben are up for the same promotion at work. when it comes time to make a decision, the management committee chooses ben

harkovskaia [24]

I believe that Anna has just encountered a glass ceiling.
This means that Anna has encountered a barrier that her from rising to the level of management committee through promotion simply because she is a woman.This term is extended to refer to the obstacles that hinder the advancement of minority women. It is often difficult for minority women to rise to ranks simply because of their responsibilities, color and discrimination. In this case, Anna being a good mother to her children makes the management think that she wont want more responsibilities.

3 0

3 years ago

Read 2 more answers

Effective managers their dominant decision style to avoid making mistakes. for each example, select the decision style that most

Vaselesa [24]

Simply put, Decision making is defined as the process involved in making a decision. It involves comparing alternatives and finding a solution to a problem.

The four styles of decision making are directive, analytical, conceptual and behavioral. Each style is a different method of weighing alternatives and examining solutions.

Kyle prefers to base decisions on lots of data, both objective data from information systems and qualitative data from people - Analytical decision style

Bill prefers simple, clear-cut solutions to problems. - Directive decision style.

Josie likes to talk to people one on one to find out how the decision will affect them - Behavioural decision style.

4 0

3 years ago