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3 years ago

12

the standard deviation is a better measure of risk than the coefficient of variation if the expected returns of the securities b

eing compared differ significantly.

1 answer:

IgorC [24]3 years ago

6 0

Answer:

False

Explanation:

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A stockbroker predicts whether a stock will go up or down by tossing a coin and so has a 50% chance of making a correct predicti

kolezko [41]

Answer:

A skilled broker will be right at 60% of time compared to 50%

Explanation:

Solution

Given that:

Now,

Let X be represented as = number of correct predictions/outcomes

X foll binomial distribution with n = 3 and p = 0.5 for broker who use a toss coin

Thus,

P(X = 3) = p^3 = 0.5^3 which gives us = 0.125

So,

For a skilled broker, Y goes with the binomial distribution with n = 3 and p is = 0.6

Then,

P(Y = 3) = 0.6^3 = 0.216

We can therefore conclude who is skilled broker by making large number of observations

Hence, we say that a skilled broker will be correct 60% of time compared to 50% .

8 0

3 years ago

Although appealing to more refined tastes, art as a collectible has not always performed so profitably. Assume that in 2015, an

xenn [34]

Answer:

-3.41%

Explanation:

The computation of the annual rate of return is shown below;

We use the formula:

Future value = Present value × (1 + rate of interest)^number of years

$10,710,500 = $12,738,500 × (1 + rate of interest)^5

($10,710,500 ÷ $12,738,500)^(1 ÷ 5) = (1 + rate of interest)

(1 + rate of interest) = 0.965913622

r = (0.965913622 - 1) × 100

= -3.41%

3 0

3 years ago

Use the chart to answer the questions. Year Potential GDP Real GDP 2017 $18.17 trillion $18.05 trillion 2018 $18.51 trillion $18

sineoko [7]

Answer:

a. Output gap for 2017 = –0.66%

b. Output gap for 2018 = 0.27%

c. From 2017 to 2018, the output gap became more positive.

Explanation:

The following are given in the question:

Year Potential GDP Real GDP

2017 $18.17 trillion $18.05 trillion

2018 $18.51 trillion $18.56 trillion

To calculate output gap in percentage form, the following formula is used:

Output gap = ((Real GDP - Potential GDP) / Potential GDP) * 100 ......... (1)

Therefore, we have:

a. Calculate the output gap for 2017. %

Using equation (1), we have:

Output gap for 2017 = ((18.05 - 18.17) / 18.17) * 100 = –0.66%

b. Calculate the output gap for 2018. %

Using equation (1), we have:

Output gap for 2018 = ((18.56 - 18.51) / 18.51) * 100 = 0.27%

c. From 2017 to 2018, the output gap became more .

Since the output gap in 2017 is negative while the output gap in 2018 is positive; this implies that from 2017 to 2018, the output gap became more positive.

8 0

3 years ago

____ consumption occurs when consumers "set apart" objects and events from normal activities and treat them with respect. ____ c

solong [7]

Answer:

Sacred consumption
Profane consumption

Explanation:

This differentiation is based on special religious events (e.g. religious holidays) that considered some goods as sacred, while profane had to do with everyday life.

Some modern marketing strategies try to build sacred brands. For example, Google has become our God of all knowledge and no one even dares to challenge that almost religious belief. Anyone can make their own coffee or buy coffee at any coffee shop, but Starbucks is different, it has built a sense of emotional connection with the public. It's not any coffee that we need or want.

6 0

3 years ago

Which of the following characteristics apply to unit investment trusts? I) Most are invested in fixed-income portfolios. II) The

sweet-ann [11.9K]

Answer:

I) Most are invested in fixed-income portfolios.

IV) The portfolio is fixed for the life of the fund.

Explanation:

Unit investment trusts is one in which Pools of money is invested in a portfolio which is fixed for the life of the fund. This is generally stocks and bonds which are redeemable units to investor for specific time. These investment portfolio have no board of directors. This is a type of mutual fund which offers investors having fixed portfolio of securities having definite life.

3 0

3 years ago