1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Dmitry [639]
3 years ago
10

A stock has an expected return of 12 percent and a standard deviation of 20 percent. Long term Treasury bonds have an expected r

eturn of 9 percent and a standard deviation of 15 percent. Given this data which of the following statements is correct?
A. Both investments have the same diversifiable risk.
B. The stock investment has a better risk-return trade-off.
C. The bond investment has a better risk-return trade-off.
D. The two assets have the same coefficient of variation.
Business
1 answer:
madreJ [45]3 years ago
4 0

Answer:

D. The two assets have the same coefficient of variation.

Explanation:

the coefficient of variation = standard deviation / mean

  • the coefficient of variation of the stock = 20% / 12% = 1.67
  • the coefficient of variation of the treasury bonds = 15% / 9% = 1.67

As a general, the lower the coefficient of variation, the more exact is the estimated return.

You might be interested in
The sustainable growth rate is based on the premise that:
gulaghasi [49]
It is based on the premise that the sustainable growth rate is that the debt<span>-equity ratio will be held constant. The sustainable growth rate is the maximum rate of growth of the firm that sustain without having to increase </span><span>financial leverage for outside financing. It is measure of how large the firm and how quickly it can row without borrowing more money.</span>
7 0
3 years ago
The ultimate goal of JIT is to have:__________.
sineoko [7]

Answer:

The correct answer is (A)

Explanation:

JIT stands for just in time; it is a process which is used to handle and coordinate the inventory management.  The main goal is to handle the inventory efficiently to improve the flow of the system in a timely manner and to eliminate discrepancies in the inventory management system. Overall, it helps to eliminate the disruption and to make the system flexible and smooth.

8 0
3 years ago
Historically, the geographic division structure is associated with companies pursuing ________ strategies.
aleksandrvk [35]
Hey there Emilymontalva1227,

Historically, the geographic division structure is associated with companies pursuing ______ strategies.

Answer:

Multi Domestic

Hope this helps :D

<em>~Natasha♥</em>
3 0
3 years ago
Jennifer is marketing manager for a major consumer goods firm. She is interested in determining if market opportunity exists for
Andrei [34K]

Answer:

- How to best segment the ready-made dinner market.

4 0
3 years ago
In 5-10 sentences, answer the Question; What is a Market Economy?
Ulleksa [173]

Answer:

A market economy is an economic system in which the decisions regarding investment, production and distribution are guided by the price signals created by the forces of supply and demand. The major characteristic of a market economy is the existence of factor markets that play a dominant role in the allocation of capital and the factors of production.Market economies range from minimally regulated free-market and laissez-faire systems where state activity is restricted to providing public goods and services and safeguarding private ownership, to interventionist forms where the government plays an active role in correcting market failures and promoting social welfare. State-directed or dirigist economies are those where the state plays a directive role in guiding the overall development of the market through industrial policies or indicative planning—which guides yet does not substitute the market for economic planning—a form sometimes referred to as a mixed economy.

8 0
3 years ago
Other questions:
  • What is the definition of shortage in economics
    13·1 answer
  • In the following descriptions, which company is likeliest to have strong power in its distribution channel? A. A pizzeria in a c
    8·2 answers
  • Xavier Co. wants to purchase a machine for $37,000 with a four year life and a $1,000 salvage value. Xavier requires an 8% retur
    12·2 answers
  • (a) On March 2, Shamrock Company sold $897,900 of merchandise to Pharoah Company on account, terms 2/10, n/30. The cost of the m
    7·1 answer
  • If a fixed asset, such as a computer, were purchased on January 1st for $3,750 with an estimated life of 3 years and a salvage o
    6·1 answer
  • Baker Company owns 15% of the common stock of Charlie Corporation and used the fair-value method to account for this investment.
    15·1 answer
  • Accounts receivable balances are required to be reflected at net realizable value as of the balance sheet date. Use of the allow
    12·1 answer
  • ME EXPLICA O BARINLY
    15·1 answer
  • Natal Technologies is developing a superior ultrasound machine for which it is required to invest $800,000. Based on the company
    8·1 answer
  • You need to decrease your spending to balance your budget. which budget category is simplest to target for spending cuts?
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!