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Murrr4er [49]
2 years ago
8

Your investment has a 40% chance of earning a 15% rate of return, a 50% chance of earning a 10% rate of return, and a 10% chance

of losing 3%. What is the standard deviation of this investment
Business
1 answer:
soldi70 [24.7K]2 years ago
6 0

Answer:

5.139%

Explanation:

P(Xi) = Probability of event Xi

E(X) = Expected value of X

The expected value of this investment is the weighted average of the possible returns:

E(X) = 0.40*0.15+0.50*0.10+0.10*(-0.03)\\E(X) = 0.107

The standard deviation of this investment is:

S=\sqrt{\sum P(X_i)(X_i-E(X))^2}\\S=\sqrt{0.40*(0.15-0.107)^2+0.50*(0.10-0.107)^2+0.10*(-0.03-0.107)^2} \\S=0.05139=5.139\%

This investment has a standard deviation of 5.139%.

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You believe that you can earn 2% more on your portfolio if you engage in full-time stock research. However, the additional tradi
Korolek [52]

Answer:

the most spend on research will be $12,000

Explanation:

given data

earn =  2% more

trading costs = 0.5%

stock portfolio = $800,000

solution

we know that here net earnings due to research is expected is

net earnings due to research = 2% - 0.5 %  = 1.5 % of stock portfolio

so

spend on research is = 1.5 % of stock portfolio

spend on research is = $800,000  × 1.5%

spend on research is = $12,000

so here when we spend more than $12,000 it end up in a net loss

so the most spend on research will be $12,000

6 0
2 years ago
Skip's sealcoating service increased its total monthly revenue from $12,000 to $13,500 when it raised the price of driveway repa
inna [77]

a. 1.12.

re. 2.11................

7 0
2 years ago
Rachel initiated the practice of company visits as part of reaching out to her company’s loyal customers . She set up a campaign
USPshnik [31]

Answer:

Rachel has displayed the explicit concept of CSR

Explanation:

The corporate sector has a duty towards its very own business, investors as well as towards the society. Subsequently, every corporate unit must have a duty regarding the upliftment of society which is comprehensively considered as Corporate Social Responsibility (CSR).

The social duty of a business demonstrates standards and commitments by the corporate leadership to take proper activities which can ensure and improve the welfare of society alongside securing business interest.

Corporate social responsibility has been accepted more and more in the recent past. This is because the actions of the corporate sector most of the time cause negative effects to the society, therefor taking up this responsibility towards the society aims at giving back to the society while at the same time achieving their business goals.

The CSR can be divided two two main concepts; implicit and explicit Corporate social responsibility (CSR). Explicit CSR alludes to corporate rules and arrangements that accept and accountability in the interest of society.  They regularly comprise of deliberate projects by  companies to combine social and business worth and address issues viewed as being part of their social obligation. An example is a move by various corporations to provide relief aid to the victims of hurricane Katrina in 2005. On the other hand, implicit CSR refers to the role of corporations in the formal and informal institution for the benefit of the society. It usually comprises of qualities, standards  and rules which bring about obligatory and standard prerequisites that need to be addressed by the organizations.

A major key difference between implicit and explicit CSR is that implicit CSR is usually thought of as a mandatory and involuntary exercise as a reaction to it's environment, while explicit CSR is often seen as a deliberate and voluntary exercise. In our case, Rachel displayed the explicit concept of CSR since the intent was deliberate and voluntary towards the benefit of the society while at the same time improving the image of the company in the mind of the loyal customers.

7 0
3 years ago
Consider a hypothetical closed economy in which households spend $0.70 of each additional dollar they earn and save the remainin
Gekata [30.6K]

Answer:

$0.70 and 3.3

Explanation:

Data provided in the question

Household spending for each additional dollar = $0.70

And, the remaining amount = $0.30

So in the given case,

The marginal propensity to consume (MPC) = household spending for each additional dollar i.e $0.70

And, the Spending multiplier is

= 1 ÷ 1 - MPC

= 1 ÷ 1 - $0.70

= 1 ÷ $0.30

= 3.3

5 0
2 years ago
Consider the following balance sheet for TD. Assets Liabilities Reserves 493 Deposits 2900 Loans 2407 4. Suppose that TD is a ty
anzhelika [568]

Answer:

what is the money multiplier?

  • 5.88

what is the total change in the M1 Money Supply?

  • Just because a client deposits money into a bank it does not increase M1, it just changes its composition. The immediate effect of the deposit in the total money supply is nothing. If the bank loans the money to other clients ($581 in total loans are possible), and other clients deposit the funds in the same bank or other banks, then the money supply could increase up to $3,416.

what is the minimum amount by which the money supply will increase?

  • If the bank loans the disposable funds, the money supply should increase by $581 at least.

Explanation:

The bank's required reserve ratio = reserves / deposits = $493 / $2,900 = 0.17 or 17%.

the money multiplier = 1 / required reserve ratio = 1 / 0.17 = 5.88

if a client deposits $700, the minimum amount by which the money supply will increase = $700 x (1 - required reserve) = $700 x (1 - 0.17) = $700 x 0.83 = $581

the maximum amount by which the money supply could increase = ($700 x 5.88) - $700 = $4,116 - $700 = $3,416

6 0
2 years ago
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