Calculate the variance of returns for Alpha stock with the following historical rates of return: 2013 20% 2014 25% 2015 30%

Answers

Answer 1

Answer: 16.67

Explanation:

The expected return (D1) = (20% + 25% + 30%) / 3 = 75% / 3 = 25%

Variance for 2013 = (20% - 25%)^2 = 25

Variance for 2014 = (25% - 25%)^2 = 0

Variance for 2015 = (30% - 25%)^2 = 25

Variance for Alpha stock will now be:

= (25% + 0 + 25%) / 3

= 50% / 3

= 16.67


Related Questions

William has a checking account balance of $783.47. He wrote a check to his credit card company for $442.65. What is Williams new checking account balance?

Answers

Answer:

William's new balance is $340.82

Where to write the account name? *
a)At the bottom of T account
b)At the top of T account
c)In the debit side
d)In the credit side

Answers

Answer:

b)At the top of T account

Explanation:

The account name is always written at the top of a T account. The account name is also the account title.

A T account has a standard format. The title or the name is what differentiates them.

Your bank has 50 percent of its loans priced off of the current prime rate at prime + 1 percent, on average. The majority of the bank's liabilities are interest-bearing core deposits (NOWs, MMDAs, and small time deposits).

Required:
a. Assume that the prime rate immediately rises from 6 percent to 6.5 percent. Will management likely increase deposit rates by 0.50 percent immediately? Explain why or why not. What will be the impact on the bank's spread?
b. Assume that the prime rate immediately falls from 6 percent to 5.5 percent. Will management likely decrease deposit rates by 0.50 percent immediately? Explain why or why not. What will be the impact on the bank's spread?

Answers

Answer:

a. Assume that the prime rate immediately rises from 6 percent to 6.5 percent. Will management likely increase deposit rates by 0.50 percent immediately? Explain why or why not. What will be the impact on the bank's spread?

First of all we must analyze what type of deposits represent most of the bank's liabilities. NOW accounts, money market deposits (aren't very flexible) and small time deposits. These deposits tend to have short maturities, so an increase in the deposit rates will not affect them a lot. That means that the bank will probably not increase the deposit rate immediately, simply to earn a higher spread (resulting in higher income). The bank's spread will increase by 0.5%.

b. Assume that the prime rate immediately falls from 6 percent to 5.5 percent. Will management likely decrease deposit rates by 0.50 percent immediately? Explain why or why not. What will be the impact on the bank's spread?

The bank will immediately decrease the deposit rate. Banks will never lose 1¢ on purpose. Again, since most deposits have short term maturity, the decrease will not affect the account owners that much. The spread might increase, but it will never decrease. In the best case scenario, it will remain the same.

In a slow year, Deutsche Burgers will produce 3.2 million hamburgers at a total cost of $5.4 million. In a good year, it can produce 5.4 million hamburgers at a total cost of $6.1 million. a. What are the fixed costs of hamburger production

Answers

Answer:

Fixed costs= $4,382,800

Explanation:

Giving the following information:

3.2 million hamburgers at a total cost of $5.4 million.

5.4 million hamburgers at a total cost of $6.1 million.

To calculate the fixed cost, we can use the high-low method. We will use the following formulas:

Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)

Variable cost per unit= (6,100,000 - 5,400,000) / (5,400,000 - 3,200,000)

Variable cost per unit= $0.318

Fixed costs= Highest activity cost - (Variable cost per unit * HAU)

Fixed costs= 6,100,000 - (0.318*5,400,000)

Fixed costs= $4,382,800

Fixed costs= LAC - (Variable cost per unit* LAU)

Fixed costs= 5,400,000 - (0.318*3,200,000)

Fixed costs= $4,382,800

You purchased a stock at a price of $53.36. The stock paid a dividend of $1.87 per share and the stock price at the end of the year was $59.46. What was the total return for the year

Answers

Answer:

Total return = 14.94%

Explanation:

Options are "14.17% , 13.40% , 14.94%, 11.43%, 3.50%"

End price = $59.46

Beginning price = $53.36

Dividend = $1.87

Total return = (End price - Beginning price + Dividends) / Beginning price

Total return = ($59.46 - $53.36 + $1.87) / $53.36

Total return = $7.97 / $53.36

Total return = 0.1493628185907046

Total return = 14.94%

A machine does three setups per production cycle. Each setup takes 20 minutes. The processing time is 0.5 minute. What batch size achieves a capacity of 24 units per hour

Answers

Answer: A batch size of 30units

Explanation:

The set up time is given as 20 Minutes per production cycle, Production cycle  for the machine has 3 cycles

Therefore  the set uo time for the cycles = 20 mins x 3= 60 minutes

Processing time = 0.5 minutes

Capacity = 24units per hour , changing to minutes we have

24 units / 60 minutes = 6/ 15 = 2/5 = 0.4 minutes

Capacity = Batch size / Set up time + batch size x processing  time per unit

0.4 = B/ 60 + B X 0.5

0.4 = B/60 + 0.5B

0.4( 60 + 0.5B) = B

24 + 0.2B=B

24=B-0.2B

0.8B=24

B =24/0.8

Batch size = 30  can be achieve at a capacity of 24 units per hour.

the term exchange in marketing mean?​

Answers

Explanation:

i hope help you

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The useful life of a plant asset is: Multiple Choice Its productive life, but not to exceed one year. Determined by the FASB. The length of time it is productively used in a company's operations. Determined by law. Never related to its physical life.

Answers

Answer:

The length of time it is productively used in a company's operations.

Explanation:

Plant Assets are simply said to be the tangible properties (assets) used in a company's operations which by the way must have a useful life of more than one accounting period. It is widely called plant and equipment asset; property asset or fixed assets.

Useful Life is simply the amount of time(usually estimated) an asset(e.g. Plant asset) can be used in a business.

Company Z has sales of $3,000,000, net income of $600,000, total assets of $1,000,000 and 800,000 shares of common stock outstanding. If Company Z's P/E ratio is 25, what is the company's current stock price

Answers

Answer:

Price per share = $18.75

Explanation:

The P/E ratio is the measure of how much the investor's are willing to pay for every $1 earnings of the stock. The p/e ratio is calculated by dividing the price per share of the stock by the earnings per share. The formula for p/e ratio is as follows,

P/E ratio = Price per share / Earnings per share

Earnings per share = Net Income / Number of Common stock outstanding

Earnings per share = 600000 / 800000  =  0.75 per share

25 = Price per share / 0.75

25 * 0.75 = Price per share

Price per share = $18.75

How much does the $1,000 to be received upon a bond's maturity in 4 years add to the bond's price if the appropriate discount rate is 6%

Answers

Answer:

$792.09

Explanation:

Calculation for how much that was received upon a bond's maturity

Using this formula

Amount received=Amount received to be received upon a bond's maturity /(1+Discount rate)^Bond's maturity years

Let plug in the formula

Amount received=$1,000/(1+0.06)^4

Amount received=$1,000/(1.06)^4

Amount received= $792.09

Therefore how much that was received upon a bond's maturity will be $792.09

Telly, age 38, has a $125,800 IRA with Blue Mutual Fund. He has read good things about the management of Green Mutual Fund, so he opens a Green Fund IRA. Telly asked for a distribution rollover and received his balance from the Blue Fund on May 1, 2019. Telly opted to have no withholding on the distribution. a. What amount will Telly receive from the Blue Fund IRA

Answers

Answer: $125,800

Explanation:

Telly would receive the full amount from the Blue Mutual Fund because he is transferring from one IRA to another.

Taxpayers are allowed to transfer or perform a distribution rollover once a year and this is what he is taking advantage of. No amount will be withheld as well should this be the case.

You’ve just joined the investment banking firm of Dewey, Cheatum, and Howe. They’ve offered you two different salary arrangements. You can have $68,000 per year for the next two years, or you can have $57,000 per year for the next two years, along with a $13,000 signing bonus today. The bonus is paid immediately, and the salary is paid in equal amounts at the end of each month. If the interest rate is 8 percent compounded monthly, what is the PV for both the options? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) PV Option 1 $ Option 2 $

Answers

Answer:

PV of first option ($68,000 per year) = ($68,000 / 12) x 22.10965 (PV annuity factor, 24 periods, 0.667%) = $5,666.67 x 22.10965 = $125,288.02

PV of second option ($57,000 per year + $13,000) = $13,000 + [($57,000 / 12) x 22.10965 (PV annuity factor, 24 periods, 0.667%)] = $13,000 + ($4,750 x 22.10965) = $118,020.84

if you want all your stores to only accept returns with receipts this would be an example of a(n)

Answers

Answer:

Procedure.

Explanation:

A procedure can be defined as a comprehensive set of sequential steps and actions which is typically used to specify the accepted, effective and efficient method for performing a task or executing a project and plans.

This ultimately implies that, procedures are mainly used by various companies or organizations to always achieve a standardized level of output and consistency in achieving its goals and objectives.

Hence, if you want all your stores to only accept returns with receipts this would be an example of a procedure.

n order to help you answer this true/false statement, which words should be underlined?: Black cats can only be found in countries in Northern America. a. Only, in, Northern America c. Northern America b. Black cats, only, countries, Northern America d. Countries, Northern America Please select the best answer from the choices provided A B C D

Answers

Answer:

B. Black cats, only, countries, Northern America

Explanation:

Just took the test on Edg 2020

The words that need to be underlined includes Black cats, only, countries, Northern America.

What are the Underlined word?

The word are intended to be highlighted to make the reader understand whether the given statement is a true statement of not.

Hence, the words that need to be underlined includes Black cats, only, countries, Northern America.

Therefore, the Option B is correct.

Read more about Black cats

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Offering all-inclusive packages and early bird discounts are examples of what two Ps?
packaging and programming
Opeople and place
O packaging and perishability
O partnership and place

Answers

Answer:

Your answer would be B. ^^

Answer:

packaging and programming

Explanation:

Got it right on the assignment

what is the factor of production that coordinates other factors of production​

Answers

An entrepreneur is a person who combines the other factors of production - land, labor, and capital - to earn a profit.

Jackson Company purchased land by paying $12,000 cash on the purchase date and agreeing to pay $12,000 for each of the next ten years beginning one-year from the purchase date. Jackson's incremental borrowing rate is 10%. At what amount would the land be reported on the balance sheet? Round your answer to the nearest dollar.

Answers

Answer:

$85,735

Explanation:

Calculation for what amount would the land be reported on the balance sheet

First step is to calculate the PV using Financial calculator

Down payment: $12,000

Present Value=PV = $73,734.81

PMT: $12,000

Interest rate =10%

Number of years =10 years

Second Step is to calculate the amount that would the land be reported on the balance sheet

Amount to be reported= $12,000+$73,734.81

Amount to be reported= $85,735

Therefore the amount that would the land be reported on the balance sheet will be $85,735

Fulbright Corp. uses the periodic inventory system. During its first year of operations, Fulbright made the following purchases (listed in chronological order of acquisition): 42 units at $109 per unit 74 units at $82 per unit 170 units at $70 per unit Sales for the year totaled 267 units, leaving 19 units on hand at the end of the year. Ending inventory using the average cost method is

Answers

Answer:

$1,497.77

Explanation:

From the above information, the following can be deduced;

42 units at $109 per unit

74 units at $82 per unit

170 units at $70

Total units = 42 + 74 + 170 = 286 units

Units left at year end = 19 units

The next step is to compute the total cost in arriving at the ending inventory, using average cost method.

Total cost = [(42 × $109) + (74 × $82) + (170 × $70)]

= $4,578 + $6,068 + $11,900

= $22,546

Per unit cost

= $22,546 ÷ 286 unit

= $78.83 per unit

Therefore, ending inventory

= Per unit cost × Units held at the end of the year

= $78.83 × 19 units

= $1,497.77

All the following are advantages of ERP systems except: ______

a. global outreach
b. high degree of conformity among modules
c. moderate to low cost
d. vendor independence

Answers

Answer:

All the following are advantages of ERP systems except: ______

c. moderate to low cost

Explanation:

Enterprise resource planning (ERP) integrates the important parts of their businesses and reduces the time and efforts required to do work.  A good ERP system enables teams to focus on revenue-generating tasks by eliminating repetitive tasks.  But, these advantages come at some steep costs, especially in initial infrastructure and continuous maintenance.

On September 1 of the current year, Mr. Z, a cash-basis, calendar-year, self-employed mechanic, borrowed $10,000 at 10% for 5 years (i.e., 60 months) to purchase equipment with a useful life of 10 years. Z paid the lender a loan origination fee of $3,000 on the loan date. This fee was solely for the use of the money. How much of the $3,000 fee may Z deduct on his Schedule C for the current year

Answers

Answer:

$200

Explanation:

Calculation for How much of the $3,000 fee may Z deduct on his Schedule C for the current year.

Amortized over life of loan = ($3,000/60 months) x 4 months

Amortized over life of loan=$50×4 months

Amortized over life of loan=$200

Note that September 1 to 31 December will give us 4 months

Therefore what Z deduct on his Schedule C for the current year is $200

explain the component of general environment ?​

Answers

General Environment is the most important dimension of business environment as businessman cannot influence or change the components of general environment rather he has to change his plans and policies according to the changes taking place in general environment.

n its 2016 annual report, Lockheed Martin reports net earnings of $5,302 and dividends paid of $2,048. Your forecast of the net income for Lockheed Martin for 2017 is $5,504. What are the projected dividends for the company for 2017

Answers

Answer:

$2,126 million

Explanation:

Calculation for the Projected dividends for 2017

Using this formula

Projected dividends for 2017=2107 Forescated net income ×(2016 Dividends/2016 Net Income )

Let plug in the formula

Projected dividends for 2017=$5,504 million × ($2,048 million / $5,302 million)

Projected dividends for 2017=$5,504 million×0.38626933

Projected dividends for 2017 = $2,126

Therefore the Projected dividends for 2017 will be $2,126 million

Why is it important for legal service workers to be fair and ethical?

Answers

Answer:

because it makes friends

Explanation:

Answer:

because you make friends andhelp chan d

Explanation:

what is an example of statistical reasoning?

Answers

Answer/Explanation:

Statistics educators often talk about their desired learning goals for students, and invariably, refer to outcomes such as being statistically literate, thinking statistically, and using good statistical reasoning. Despite the frequent reference to these outcomes and terms, there have been no agreed upon definitions or distinctions. Therefore, the following definitions were proposed by Garfield (2005 and have been elaborated in Garfield and Ben-Zvi (2008).

Statistical literacy is regarded as a key ability expected of citizens in information-laden societies, and is often touted as an expected outcome of schooling and as a necessary component of adults’ numeracy and literacy. Statistical literacy involves understanding and using the basic language and tools of statistics: knowing what basic statistical terms mean, understanding the use of simple statistical symbols, and recognizing and being able to interpret different representations of data (Garfield 1999; Rumsey 2002; Snell 1999)

What is one major drawback of globalization?
A. Inflation rates have declined significantly because of increased
global trade.
B. Environmental regulations have gotten in the way of economic
growth.
C. Businesses have access to fewer markets when selling their
products.
D. Increased competition can harm businesses in developing
countries.

Answers

Answer:

the answer I got was D. Increased competition can harm businesses in developing countries.

Explanation:

Globalization is the movement of business internationally. It is harmful to developing countries as it increases the competition.

What is Globalization?

It is believed that Globalization started with Columbus's expedition in 1492. But actually, it started way before with the first movement of Africans to the world in 5000 BCE. It is the movement of a business or organization in the international market.

It has many advantages but the biggest disadvantage of Globalization is harmful to developing countries as it increases the competition in the internal market.

Therefore option D describes the drawback of globalization.

Learns more about globalization here:

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Cullumber Company reported the following information for 2020: Sales revenue $2410000 Cost of goods sold 1751000 Operating expenses 284000 Unrealized holding gain on available-for-sale securities 85600 Cash dividends received on the securities 10900 For 2020, Cullumber would report comprehensive income of

Answers

Answer:

$85,600

Explanation:

The computation of the comprehensive income is shown below:

It is not a part of the income statement. It is a gain or loss i.e. unrealized. It could be unrealized gain or loss on the bonds or investments, gain or loss while doing foreign currency transaction etc

Therefore in the given situation, the comprehensive income should be equivalent to the unrealized holding gain i.e $85,600

The same is to be considered

Select the education and qualifications that are most helpful for Human Resources careers. Check all that apply.

integrity
long-term planning skills
communication skills
bachelor’s degree
research skills
creativity
organizational skillsWhich is the best estimate for the percent equivalent of 7/15

Answers

Answer:

2 4 5 7

Explanation:

Answer:

2,4,5,7

Explanation:

Select the incorrect statement regarding relevant costs and revenues. Group of answer choices Sunk costs are never relevant for decision-making purposes. Differential revenues are expected future revenues that differ from past revenues. To be relevant, a cost or revenue must not be future-oriented and must differ between the alternatives. Avoidable costs are also known as differential costs.

Answers

Answer:

The incorrect statement regarding relevant costs and revenues:

To be relevant, a cost or revenue must not be future-oriented and must differ between the alternatives.

Explanation:

For a cost or revenue to be considered as relevant, it must be incurred or earned at a future time.  It must also differ between the options available for decision making.  A cost or revenue cash flow is relevant if it arises from a management decision and can be avoided.  This simply means that if the cost or revenue is not affected by management decision or does not make any difference in decisions, it is not relevant.

Identify five areas of concern where business standards apply

Answers

Answer:

The government regulates the activities of businesses in five core areas: advertising, labor, environmental impact, privacy and health and safety.

Consumer protection Via Advertising Restrictions. ...

Employment and Labor Protection. ...

Environmental Impact of Business. ...

Date Security and Privacy Protection. ...

Safety and Health.

A firm is considering a project and plan to obtain a target capital structure with $64,519 of debt at a before-tax cost of 9.6%, $17,673 of preferred stock at a cost of 10.7% and $70,938 of equity at a cost of 13.5%. The firm faces a tax rate of 40%. What will be the firm’s weight on preferred stock?

Answers

Answer:

Weight on preferred stock =   0.1154 or 11.54%

Explanation:

The capital structure of a firm can be made up of one, two or all of the following components namely Debt, preferred stock and common equity. To calculate the firm's weight on the preferred stock, we need to calculate the total value of the firm's target capital structure and divide the value of preferred stock in the capital structure by the total value of the target capital structure.

Total value of capital structure = 64519  +  17673  +  70938  = 153130

Weight on preferred stock = 17673 / 153130  =  0.1154 or 11.54%

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