If x is a normal good, an increase in income will shift the.

The last four years of returns for a stock are as follows: Year 1 2 3 4 Return −4.5% 28.1% 12.2% 3.7% a. What is the averag

jeyben [28]

Answer:

a. What is the average annual return?

average annual return (mean) = (-4.5% + 28.1% + 12.2% + 3.7%) / 4 = 9.875%

b. What is the variance of the stock's returns?

variance = [(-4.5% - 9.875%)² + (28.1% - 9.875%)² + (12.2% - 9.875%)²) + (3.7% - 9.875%)²] / 4 = (206.64 + 332.15 + 5.41 + 38.13) / 4 = 582.33 / 4 = 145.5825

c. What is the standard deviation of the stock's returns?

standard deviation = √145.5825 = 12.06%

4 0

4 years ago

You have two options to repay a loan. You can repay $6,000 now and $5,940 in one year; or you can repay $12,000 in 6 months. Fin

Brums [2.3K]

Answer:

We will consider positive interest rate which is i=0.21 or i=21%

Explanation:

The formula for Future value is:

$FV=PV(1+i)^n$

The present value will become:

$PV=FV(1+i)^{-n}$

where:

n is the number of years

Since the condition is same present value,so the given data form the equation:

$6000+5940(1+i)^{-1}=12000(1+i)^{-1/2}$

Divide above equation by $(1+i)^{-1}$

$6000(1+i)+5940=12000(1+i)^{1/2}$

Let $z=(1+i)^{1/2}\\$ . Above equation will become:

$6000z^2+5940=12000z$

Rearranging above equation:

$5940-12000z+6000z^2=0$

Solving the quadratic equation:

z=1.1, z=0.9

Let $z=(1+i)^{1/2}\\$ will become:

$z=(1+i)^{1/2}\\\\z^2=1+i$

$i=z^2-1$

For z=1.1

$i=(1.1)^2-1\\i=0.21$

For z=0.9

$i=(0.9)^2-1\\i=-0.19$

we will consider positive interest rate which is i=0.21 or i=21%

7 0

3 years ago

An email message that appears legitimate arrives in your inbox from your bank and asks you to click on a link in the message and

Whitepunk [10]

The answer is Phishing attack

6 0

3 years ago

To create meaningful on social media content that will resonate with audiences, businesses engage in ______________, which is th

Margaret [11]

Answer:

I think the answer ought to be B. Social listening

Explanation:

By definition social listening is Social media measurement, 'social media monitoring' or social listening is a way of computing popularity of a brand or company by extracting information from social media channels. So that seems to be the best fit.

5 0

3 years ago

The real interest rate tells you Question 31 options: how fast the number of dollars in your bank account rises over time. how f

Elan Coil [88]

The real interest rate tells you how fast the purchasing power of your bank account rises over time.

<h3>What is meant by the real interest rate?</h3>

When a borrower pays back a loan with interest, the lender obtains a gain in purchasing power that is expressed as a percentage.
In the previous illustration, the lender made $8 on the $100 loan, or 8%.

<h3>What is real and nominal interest rate?</h3>

The real rate of a bond or loan is determined by adjusting a real interest rate to account for the impacts of inflation.
The interest rate before accounting for inflation is referred to as a nominal interest rate.

<h3>Why real interest rate is important?</h3>

Real interest rates are the main concern of economists.
Investors may be forced to take on greater risk or withdraw entirely depending on the real rate.
Without ever taking a dollar, it can drain your savings.
Every central bank in the world has it on their radar.

Learn more about real interest rate here:

brainly.com/question/6106690

#SPJ4

5 0

2 years ago