If you get 20% off of an item that is now $320, what was the original price before the discount?

You are considering investing in one of the these three stocks:Stock Standard Deviation BetaA 20% 0.59B 10% 0.61C 12% 1.29If you

Drupady [299]

Answer:

The correct option is B.

Explanation:

Risk aversion is a situation where investor like returns and dislike the risk. The higher the risk, higher the expected return an investor will demand.

In this situation, will look at the standard deviation (SD). The larger the SD, it states that outcome will be dispersed widely and smaller SD, states that the outcome or result will be more tightly cluster around the expected value. So, because of this will be choosing the Stock B for isolation and Stock A for portfolio which well diversified.

4 0

3 years ago

A 10-year, 9.00%, $3,000 bond that pays dividends quarterly can be purchased for $2,775. This means that $2,775 is spent on the

Rainbow [258]

Answer:

The range of effective rate of return that the purchaser will receive would be between 10.2% - 11.2%. The right answer is a

Explanation:

According to the given data we have the following:

Quarterly dividend = $67.50

Buy price = $2,775

Maturity = 10 yrs = 10*4 = 40 quarters

Face value = $3000

Hence, PW = -2775 + 67.50 * (P/A,i%,40) + 3000*(P/F,i%,40) = 0

67.50 * (P/A,i%,40) + 3000*(P/F,i%,40) = 2775

Therefore, using trail and error method

When i = 2.5%, value of 67.50 * (P/A,i%,40) + 3000*(P/F,i%,40) = 2811.729

When i = 3%, value of 67.50 * (P/A,i%,40) + 3000*(P/F,i%,40) = 2479.917

And by using interpolation

i = 2.5% + (2811.729-2775) / (2811.729-2479.917) *(3-2.5)

i = 2.5% + 0.05534%

i = 2.555%

Nominal yeild = 2.555% * 4 = 10.22%

Effective yeild = (1+0.02555)^4 - 1 = 0.10618 = 10.62%

The range of effective rate of return that the purchaser will receive would be between 10.2% - 11.2%

3 0

3 years ago

What is autocratic leadership

4vir4ik [10]

An authoritarian leadership style is exemplified when a leader dictates policies and procedures, decides what goals are to be achieved, and directs and controls all activities without any meaningful participation by the subordinates.

4 0

3 years ago

Read 2 more answers

The production team of U Sandals that manufactures women's footwear has determined the quantity of leather, threads, labor, and

velikii [3]

Answer:

D) multifactor productivity

Explanation:

Multifactor productivity measures the total output vs total inputs needed to produce them. It basically measures economic performance and productive efficiency. How many inputs (labor, materials and overhead) are needed to produce a certain amount of finished goods or services.

7 0

3 years ago

Develop the three-week moving average forecasts for this time series. Compute MSE and a forecast for week 7 (to 2 decimals if ne

Harlamova29_29 [7]

Answer:

a. We have:

MSE: 63.03

The forecast for week 7: 15.33

b. We have:

MSE: 47.49

The forecast for week 7: 16.35

c. The exponential smoothing forecast using = 0.2. appears to provide the better forecast based on MSE.

Explanation:

a. Develop the three-week moving average forecasts for this time series. Compute MSE and a forecast for week 7 (to 2 decimals if necessary).

Note: See Part a of the attached excel file for the Calculations of Forecast, Error, and Error^2.

From the attached excel file, we can have:

MSE = Mean squared error = Total of Error^2 / Number of observation under the Error^2 = 252.11 / 4 = 63.03

The forecast for week 7 = 15.33

b. Use = 0.2 to compute the exponential smoothing values for the time series. Compute MSE and a forecast for week 7.

Note: See Part b of the attached excel file for the Calculations of Forecast, Error, and Error^2.

From the attached excel file, we can have:

MSE = Mean squared error = Total of Error^2 / Number of observation under the Error^2 = 284.96 / 6 = 47.49

The forecast for week 7 = 16.35

Note that under exponential smoothing, forecast for week 2 has to be the Time Series Value for week 1.

b. Compare the three-week moving average forecast with the exponential smoothing forecast using = 0.2. Which appears to provide the better forecast based on MSE?

Since 47.49 MSE of the exponential smoothing forecast using = 0.2 is less than 63.03 MSE of the three-week moving average forecast, it implies that the exponential smoothing forecast using = 0.2. appears to provide the better forecast based on MSE.

Download xlsx

4 0

3 years ago