When applying for a job, which document should you tailor to fit the job posting?

Stock A has a return volatility of 10% and a beta of 0.9. Stock B has a return volatility of 20% and a beta of 0.6. According to

Fynjy0 [20]

Answer:

A. Stock A should have a higher expected return.

Explanation:

Capital Asset Pricing Model (CAPM) formula is used to calculate expected return of a stock and the formula is as follows;

CAPM; r = risk free rate + beta(Market risk premium)

Since beta is in the CAPM and determines the rate of return, we will use beta to compare these two stocks. The higher the beta, the higher the rate of return. Stock A has a beta of 0.9 which is higher than that of B (0.6). Therefore, stock A's stock return will be higher than that of B but lower than the market return since beta of the market is 1.0.

8 0

4 years ago

The Salty Pawz margins are good, but would Wanda be better off by lowering prices and potentially selling more? Would dropping h

Veseljchak [2.6K]

Answer: Incomplete question

Explanation: The data supplied is not enough to answer the question.

8 0

3 years ago

The Consumer Division lost $28,000 and the Industrial Division had operating income of $58,000. Management has analyzed the situ

Juli2301 [7.4K]

Answer: c. $22,000 increase in operating income

Explanation:

Expected decrease in revenues -$280,000

Expected decrease in total variable costs (-$200,000)

Expected decrease in fixed costs <u> (-$102,000)</u>

Expected increase(decrease) in operating income $22,000

<em>Costs are to be deducted from revenues so if the costs are decreasing, the mathematical treatment would be to add the decrease to the revenues which is how the above was calculated. </em>

5 0

3 years ago

A local bookstand believes that the demand for the Olympic edition of a sports magazine is normally distributed with a mean of 1

atroni [7]

Answer:

1,304 copies

Explanation:

Overage cost (Co) means like cost of over ordering

Co = Cost price - Salvage value

Co = $1.50 - $0 (No salvage value)

Co = $1.50

Underage cost (Cu) means like cost of under ordering

Cu = Selling price - Cost price

Cu = $5.00 - $1.50

Cu = $3.50

Service level = Cu / (Cu + Co)

Service level = $3.50 / ($3.50 + $1.50)

Service level = $3.50 / $5.00

Service level = 0.7

Z-value = NORMSINV (Service level), Using Ms Excel

Z-value = NORMSINV (0.7)

Z-value = 0.52

Optimal Order Quantity (Q) = Mean Demand + (Z-value*Standard deviation)

Optimal Order Quantity Q = 1,200 + (0.52*200)

Optimal Order Quantity Q = 1,200 + 104

Optimal Order Quantity Q = 1,304 copies

7 0

3 years ago

3. A 9.3% annual coupon bond with a 10-year maturity and a $1,000 par value has a yield to maturity of 8%. Assuming that the yie

aliina [53]

Holding period return is 8.000%

Price at the time of purchase=

1000*9.3% 8(1/1.08^10)+1000/1.08^10=1087.231058

Price at the time of sale=

1000*9.3%/8%*(1-1/1.08^9)+1000/1.08^9=1081.209543

Holding period return=

(1081.209543+1000*9.3%)/1087.231058-1=8.0000%

Coupon bonds, also known as bearer bonds or bond coupons, are debt securities with coupons attached that represent semi-annual interest payments. For coupon bonds, there is no record of the purchaser and issuer. The purchaser's name is not even printed on the certificate.

A coupon bond is a debt instrument with a removable piece of paper that can be peeled off the bond itself and taken to a bank or broker to pay interest. These removable pieces of paper are called coupons and represent interest payments to creditors.

Learn more about coupon bonds here

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3 0

2 years ago