Answer:
Standard deviation =21.34
Explanation:
<em>Standard deviation is measure of the total risks of an investment. It measures the volatility in return of an investment as a result of both systematic and non-systematic risks. Non-systematic risk includes risk that are unique to a company like poor management, legal suit against the company .</em>
<em>Standard deviation is the sum of the squared deviation of the individual return from the mean return under different scenarios</em>
Expected return (r) = (13.6% × 0.33 ) + (12.3% × 0.36) + (27%× 0.31)=17.3%
Outcome R (R- r )^2 P×(R- r )^2
Recession 13.6 13.6 4.5
Normal 12.3 24.9 8.9
Boom 27% 94.4 <u> 29.3
</u>
Total <u> 42.7
</u>
Standard deviation = √42.7 = 21.34
Standard deviation =21.34
Answer:
The correct answer is option (a).
Explanation:
According to the scenario, computation of the given data are as follows:
Allowance method shows that, if account is written off, then Accounts receivable account gets credited and Allowance accounts gets debited.
Here, both accounts are or balance sheet items.
So, it will not affect any expenses account.
Answer:
$961.54
Explanation:
To calculate the real price of the TV you would have to determine the present value of the TV's price. The future price of the TV is $1,000 and your discount rate is 4% annual (the same as your bank), so the present value of the TV =
present value = future value / (1 + rate) = $1,000 / 1.04 = $961.54
Answer:
B. contractionary fiscal policy
Explanation:
The government influences economic direction through fiscal policy measures of increasing or decreasing its expenditure and taxation. Therefore, fiscal policies involve the government's actions of adjusting its spending and taxation to achieve desired economic objectives.
Fiscal policies can either be contractionary or expansionary. Contractionary measures are applied to control rising inflation and moderate the rate of growth. These policies aim at reducing liquidity in the market, thereby achieving stable prices. A reduction in government spending and an increase in taxation reduces liquidity or money circulation.
Answer:
decrease
Explanation:
Marginal cost is a concept that explains the cost a company has to produce one more unit of good. This is a measure that is associated with the productivity of the inputs used in the production process. When a company increases production, marginal cost tends to decrease as inputs are better utilized. This is because the company specializes in production in order to streamline inputs and increase productivity.
