answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Kisachek [45]
2 years ago
13

Asset A has an expected return of 15% and a reward-to-variability ratio of .4. Asset B has an expected return of 20% and a rewar

d-to-variability ratio of .3. A risk-averse investor would prefer a portfolio using the risk-free asset and ______. Multiple Choice
asset B asset A
no risky asset
The answer cannot be determined from the data given.
Business
1 answer:
4vir4ik [10]2 years ago
8 0

Answer:

Correct option is B.

<u>Asset A</u>

Explanation:

Reward to variability ratio = return/σ

Asset A,σ = 15/0.4 = 37.5

Asset B,σ = 20/0.3 = 66.67

Since deviation(volatility) is lesser for asset A,a risk investor would prefer asset A.

You might be interested in
GMC is considering launching a new line of hybrid diesel-electric SUVs. The heavy advertising expenses associated with the new S
uranmaximum [27]

Answer:

$24 million

Explanation:

Given that

Tax rate = 30%

Pre-tax income = $80 million

The calculation of  pre-tax income next year is shown below:-

The 30% taxes on pre-tax income × $80 million next year

= 30% × $80 million

= $24 million

Therefore, SUV is not introduced so here we will not consider the operating loss for the next year $30 million.

4 0
2 years ago
In terms of explaining the probability of assignment to trial arms in consent forms, which is true?
tamaranim1 [39]

In terms of explaining the probability of assignment to trial arms in consent forms, it is true that ICH notes should be included

To add, an internationally accepted standard for the designing, conducting, recording and reporting of clinical trials is called The Note for Guidance on Good Clinical Practice (CPMP/ICH/135/95).

3 0
2 years ago
White &amp; Checker is releasing a new power drill that requires the manufacturing of a new part.They are considering whether th
gizmo_the_mogwai [7]

Answer:

A

Explanation:

Breakeven quantity is the number of units produced and sold at which net income is zero

The product should not be released because the demand is less than breakeven quantity. If the product is released, the firm would earn losses

8 0
2 years ago
ABC Manufacturing produces a product for which the monthly demand is 900 units. Production averages 100 units per day. Holding c
vekshin1

Answer:

EPQ =  1982  

maximum inventory =  1090

average inventory =  545

order cycles =  44.04

total cost of managing  =  $2180

Explanation:

given data

monthly demand = 900

annual demand = 12 × 900 = 10800

Production averages = 100 units

Holding costs = $2.00

setup cost = $200.00

company operates= 240 days

solution

daily usage = \frac{10800}{240}

daily usage = 45

we find here EPQ

EPQ = \sqrt{\frac{2*demand*setucost}{holding cost}} × \sqrt{\frac{daily production}{daily production - daily use}}   ...........1

EPQ = \sqrt{\frac{2 * 10800 * 200}{2}} × \sqrt{\frac{100}{100-45}}

EPQ =  1982  

and

maximum inventory = \frac{Q}{daily production} × daily production - daily use

maximum inventory = \frac{1982}{100} × (100-45)

maximum inventory =  1090

and

average inventory = \frac{maximum inventory}{2}

average inventory = \frac{1090}{2}

average inventory =  545

and

order cycles =  \frac{Q}{daily use}

order cycles =  \frac{1982}{45}

order cycles =  44.04

and

total cost of managing  = \frac{maximum inventory}{2}* holding cost + \frac{demand}{Q}*setup cost

total cost of managing  = \frac{1090}{2}* 2 + \frac{10800}{1982}*200

total cost of managing  = 2179.81 = $2180

5 0
2 years ago
Each week a soft drink machine sells x cans of soda for $0.75/soda. The cost to the owner of the soda machine for each soda is $
Assoli18 [71]

Answer:

$34.8

Explanation:

Profits = sales - costs( variable costs +fixed costs)

In this case : total sales will be price $0.75 x units sold X= 0.75X

Variable costs : =$10 x units sold= $10x

Fixed cost remain $25 as they are not affected by quantity.

profits for the Week

P= (0.75x- 0.10x)-$25

Profit for the week with units sold as 92: x = 92

p= ( {0.75x92} - {0.10x92} )- $25

P= $69 - $9.2- $25

P=$59.8- $25

   =$34.8

3 0
2 years ago
Other questions:
  • Customer complaints and terrible ratings for customer service let sprint know it had a problem. these are examples of _____ cont
    11·1 answer
  • Suppose you want to play a carnival game that costs 7 dollars each time you play. If you win, you get $100. The probability of w
    13·2 answers
  • Psychographic segmentation is based on ________.
    11·1 answer
  • Bank of the Atlantic has liabilities of $4 million with an average maturity of two years paying interest rates of 4.0 percent an
    11·1 answer
  • Jack Corp. has a profit margin of 6.4 percent, total asset turnover of 1.77, and ROE of 15.84 percent. What is this firm’s debt-
    5·1 answer
  • Which of these liens has the highest priority?
    13·1 answer
  • Paulina has never cheated on a psychology test, but she often does so on chemistry tests. She recently stole some merchandise fr
    14·1 answer
  • Which of the following is an application of​ conservatism? A. reporting inventory at the lower of cost or market B. using the sa
    13·1 answer
  • 1. A county's general fund has $4,000,000 in purchase orders outstanding at the beginning of 2020. The orders are delivered in 2
    15·2 answers
  • Alpha Industries is considering a project with an initial cost of $8.5 million. The project will produce cash inflows of $1.51 m
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!