Answer:
Stock X has a CV of 4 while Stock Y has a CV of 2. As stock Y has a lower CV than Stock X, it is less riskier.
Explanation:
The coefficient of variation is a statistical model which is also used to determine the volatility per unit of a factor. In terms of a stock, the coefficient of variation calculates the volatility of its return. It is calculated by dividing the stock's standard deviation, which is a measure of risk, by the stock's mean return or expected return.
CV = SD / r
Where,
- CV is coefficient of variation
- SD is standard deviation
- r is expected return
The CV of a stock tells us the risk per unit of return. The higher the CV, the riskier the stock and vice versa.
Stock X has a CV of 4 while Stock Y has a CV of 2. As stock Y has a lower CV than Stock X, it is less riskier.
Answer:
The correct answer is C. hedging.
Explanation:
Coverage, in finance, is the set of operations aimed at canceling or reducing the risk of a financial asset or liability in the possession of a company or an individual. Funds created for this purpose are called hedge funds.
The hedging operations consist of the acquisition or sale of a financial asset that is correlated with the element on which the coverage is to be established. Said acquisition or sale may be of shares, indices, interest rates, options, futures, etc.
Answer:
The communication channels created by the organizational structure serve specific functions through downward, upward and lateral communication. Thus an organization's structure must facilitate this effective flow of communication.
Explanation:
Answer:
$75,000
Explanation:
Accounts Payable = $60,000
Salaries and Wages Payable = $15,000
Mortgage Payable = $85,000
Total Liabilities = $160,000
Current liabilities operating liabilities are a significant part of the accounts of the company.
The total dollar amount of liabilities to be classified as current liabilities:
= Accounts Payable + Salaries and Wages Payable
= $60,000 + $15,000
= $75,000
Answer:
<h2>
Hennigan Rentals:</h2>
Hennigan is owed $175 from its customers on December 31.
Explanation:
Accounts Receivable
Date Description Debit Credit Balance
Dec. 8 Cash $75 ($75)
Dec. 20 Earned Rentals $750 $675
Dec. 31 Cash $500 $175
When a rental company accepts payment in advance of its service, it increases the cash balance and reduces the Accounts Receivable. In the same way, when cash is received for services already rendered and invoiced, the cash balance is increased and the Accounts Receivable reduced by the same amount.
Accounts Receivable represents the total amount owed to a company resulting from the provision of goods and services on credit. The balance forms part of the current assets in the company's balance sheet.
A journal entry for a sale on account debits account receivable and credits revenue account. When the customer pays on account, cash is debited while the accounts receivable is credited. At the end of the period, the account is balanced.
