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hodyreva [135]
3 years ago
10

Kelly decided to accept the risk and purchased a high growth stock. Her returns for the past five years are 32 percent, 24 perce

nt, -48 percent, 12 percent, and -9 percent, respectively. What is the standard deviation of these returns
Business
1 answer:
Mazyrski [523]3 years ago
5 0

Answer:

32.03%

Explanation:

The computation of the standard deviation is as follows;

As we know that

Average return = Total return ÷Total time period

= (32 + 24 - 48 + 12 - 9) ÷ 5

= 2.2%

Now

Return         (Return - Average Return)^2

32                  (32 - 2.2)^2 = 888.04

24                 (24 - 2.2)^2 = 475.24

-48                (- 48 - 2.2)^2  = 2520.04

12                  (12 - 2.2)^2 = 96.04

-9                   (-9 - 2.2)^2 = 125.44

Total =                 4104.8%

Now

Standard deviation is

= [Total (Return - Average Return)^2 ÷ (Time period- 1)]^(1 ÷ 2)

= [4104.8 ÷ (5 - 1)]^(1 ÷ 2)

= [4104.8 ÷ 4]^(1 ÷ 2)

= 32.03%

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Suppose you know a company's stock currently sells for $90 per share and the required return on the stock is 8 percent. You also
maks197457 [2]

Answer: $3.46

Explanation:

Given the following :

Current share price (P0) = $90 per share

Required return on stock= 8%

total return on the stock is evenly divided between a capital gains yield and a dividend yield ;

Therefore, Required return on stock= 8% ;

4% capital gain yield + 4% Dividend yield = 8%

Growth rate = 4% = 4/ 100 = 0.04

D1 = D0(1 + g)

D1 = value of next year's Dividend

D0 = current Dividend yield

g = Constant growth rate

D1 = current stock price * g

D1 = 90 * 0.04 = 3.6

D1 = D0(1 + g)

D0 = D1 / (1+g)

D0 = 3.6 / (1+ 0.04)

D0 = 3.6 / 1.04

D0 = $3.46

8 0
3 years ago
When a _________ matures, you receive your entire investment back plus any remaining interest.
kiruha [24]
Bond is correct answer.

When a bond matures, you receive your entire investment back plus any remaining interest.

Hope it helped you.

-Charlie
7 0
3 years ago
Researching the demographics of a fan base for a particular sport would be most closely associated with which core standard of m
d1i1m1o1n [39]

Answer:Marketing Information Management

Explanation:The process of monitoring, organizing and analyzing the results of data collected from the marketplace with an aim of developing strategies for marketing activities is Marketing Information Management.

Demographics relates to statistical data of a given population. Such as the age, gender, race and so on.

As such, a research of demographics of a fan base is closely associated with marketing information management as the information gathered will be relevant for forecasting.

5 0
3 years ago
Materials purchased on account during the month amounted to $190,000. Materials requisitioned and placed in production totaled $
svetoff [14.1K]

The entry to record the transaction for materials requisitioned by the production department is to

Debit WIP $156,000

Credit Materials $156,000

Organization accountants should account for direct and indirect materials one after the other. The magazine entry for direct substances, this is, substances that can be without delay traced to merchandise, is a debit to the paintings in technique and a credit to the raw materials inventory accounts.

To file materials used in manufacturing, a debit for the value of raw substances is made to the WIP inventory account and a credit score is made to the raw substances account. Exertion fees are spilt between direct and indirect labor.

Learn more about transactions here brainly.com/question/1016861

#SPJ4

5 0
1 year ago
If the cost of goods sold is more than the cost of goods manufactured, then
ivann1987 [24]

Answer:

C. Finished Goods Inventory has decreased.

Explanation:

Cost of goods manufactured (COGM) increases when finished goods inventory is <em>produced</em>, while cost of goods sold (COGS) increases when finished goods inventory is <em>sold</em>. If COGS has been increasing faster than COGM has been increasing, the company has been selling more goods than it has been producing. Therefore, it must have sold goods from its surplus of finished goods inventory. Thus, finished goods inventory has decreased.

8 0
3 years ago
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