3. You’ve observed the following returns on Regina computer stock over the past five years: 7%, -12%, 11%, 38% and 14% a.) What was the arithmetic average return on Regina stock over this five-year period? b.) What was the variance of Regina returns over this period? The standard deviation?
Q: A monopolist provides the same service in two separate markets A and B given the nature of the…
A: A market structure in which a single individual or firm holds exclusive control or dominance over a…
Q: Which of the following is correct? a. Less than 5 percent of world output is sold in a country…
A: This statement is not accurate. International trade plays a significant role in the global economy,…
Q: 3. A municipal police department has decided to acquire an unmanned drone for aerial surveillance of…
A: The incremental present worth analysis helps us determine if the project is financially viable. To…
Q: What is total expenditure method in price elasticity of demands. Need a diagram too.
A: Price elasticity of demand refers to the percentage change in the quantity demanded with respect or…
Q: Three firms, A, B and C engage in Bertrand price competition in a market with inverse demand given…
A: Determine the reaction function for each firm. The reaction function represents the best response of…
Q: Consider the supply and demand functions graphed below. Price 100 75 70 60 10 1 56 Supply Demand 20…
A: Demand curve is the downward sloping curve. Supply curve is the upward sloping curve. Equilibrium…
Q: The soft drink industry is dominated by two cola firms- DEW and HEW. The market is worth $8…
A: The pay-off matrix represents the possible outcomes by using the action or strategy of each player.…
Q: Instructions: Enter your answers as a whole number. The profit-maximizing price for Lady Gaga MP3s…
A: Profit maximizing price refers to the level of price at which a business or firm aims to maximize…
Q: If the government were to give avocado farmers a $2 subsidy per kilo, what would be the new…
A: The subsidy given to farmers decreases the avocado production cost, and leading to a rightward shift…
Q: 1.) Relevance of the Taxation in the Philippines (What are the advantages and Disadvantages of…
A: ***Since the student has posted multiple unrelated questions, the expert is required to solve only…
Q: Suppose you're an agent for a hockey player. The player is offered two contracts: A. A signing bonus…
A: To determine which contract would be more advantageous for the hockey player, we need to consider…
Q: Nominal GDP in 1990 was $40,000, and in 2000 it was $35,000. The GDP deflator was 102 in 1990, and…
A: The GDP deflator is a measure of inflation that reflects the price changes of all goods and services…
Q: Assume the reserve requirement is 15%. If the Fed increases reserves by $30 billion, what is the…
A: The amount of liabilities or deposits kept in the commercial bank's safe is known as RRR. RRR has…
Q: two firms make these choices at the same time. The payoffs are given in the normal form game below.…
A: In a finite time period game, both players play Nash equilibrium in all time period. As in this…
Q: E) Give an example of an event that will shift the supply curve for the chocolate bars left. Explain…
A: We have given the following demand function for chocolate bars. QD = 1600 - 200PQS = 100 + 100PWhere…
Q: 1. Draw the graph and find the slope for the following set of data-Show your work. a) b) Point A B с…
A: The slope of a curve at a particular point represents the rate of change of the curve at that point.…
Q: Discuss the main negative social and economic implications of industrializing in an open globalised…
A: Industrialization refers to the process of transforming an economy from primarily agrarian and…
Q: 1.3. Incomplete information. There are two firms competing on price. They sell different…
A: To find the equilibrium in this incomplete information game, we need to analyze the strategies and…
Q: Country (currency measured in FX units) Per $ (EFX/$) Price of Market Basket (in FX) Price of…
A: Calculation for BrazilPrice of U.S. Basket in FX (PUS * EFX/$) = $190 * 4.07 real/$ = 773.30…
Q: The owner of the Jets is going to offer a contract to a free agent player, Hapoleon. If signed,…
A: The optimal wage is the economic wage level that maximizes an individual or a group's utility in the…
Q: Given the data and news stories released in the past two weeks, in your assessment has inflation in…
A: Inflation is an economic phenomenon characterized by a sustained increase in the general price…
Q: 20 18 16 14 12 10 g 6 2 Chile's Production Possibilities Frontier soybeans (in pound) 2 4 L Chile:…
A: The production possibility frontier depicts the combination of two goods that can be produced using…
Q: A manufacturing company is considering investing in a new machine that costs $12,000. The machine…
A: Present value is the value of investment in today's dollar.…
Q: If the firm were to charge only individual prices, what prices should it set for its laptops to…
A: To maximize profit when charging individual prices, the firm should set prices for laptops and…
Q: Dear Respected Expert, I need The following analysis for the year 2023 {would it be possible to…
A: the macro outlook of Vietnam for the year 2023, focusing on GDP, CPI, IIP, import and export, and…
Q: Which one of the followings is NOT a correct statement about the future of the healthcare reform in…
A: Health economics is the study of broader health characteristics as well as the economic consequences…
Q: (a) A monopolist sells its product in two markets, Spain and France. Its cost function is given by C…
A: Monopolist : A monopolist is a single seller or producer in the market who has complete control over…
Q: In the market for travel, what is true about the relationship between the market equilibrium (n) and…
A: The consequence or impact of an economic activity that affects individuals or firms who are not…
Q: In Country 1, the values of the aggregate variables in 2020 are given as follows: Country 1 (in…
A: National income accounting is highly significant for any economy as it offers a well-structured and…
Q: In the FT article “Japan’s core inflation hits 41-year high with central bank under policy pressure”…
A: I am going to provided a response to a question that involved two parts. Firstly, I graphically…
Q: 1) Define Cartel and give an example. 2) Thelma and Louise are being charged for a murder/robbery.…
A: The oligopoly refers to the market where few dominant firms dominate the market. The competition is…
Q: Year Stickers Paper plates Price Quantity Price Quantity (Dollars per sticker) (Number of stickers)…
A:
Q: What are the import and export requirements and costs of boat engines in Philippine?
A: The movement of goods, services, and finance across countries or geographical areas is often…
Q: what is efficient scale in economics
A: In economics, the concept of efficient scale means the optimal level of production at which a firm…
Q: . MBI and Pear are the only two producers of computer. MBI started producing computers earlier than…
A: Two firms: MBI and PearCost of MBI: C1(y1) = y12 Cost of Pear: C2(y2) = 15y1 +y22 Total demand: y =…
Q: (iii) research and discuss factors that could account for the difference(s) observed in the…
A: Unemployment describe as a situation in the economy in which individuals who are actively seeking…
Q: 3. Consider a two-stage game of R&D competition. The players are firm i and j, each produces with…
A: In the world of economic competition, firms are constantly seeking ways to gain an edge over their…
Q: Policy Brief needs to provide some background information on the role of fiscal policy in the…
A: The business cycle Shows the frequent pattern of expansion and contraction in an economy over time.…
Q: costs are given in the following table. At what price will they earn zero profits? Output D O $5 O…
A: Firm maximizes profit by producing at a point where marginal cost is equal to price.
Q: Total Utility from Ice Cream 50 Marginal Utility of Ice Cream 40 30 20 10 ol setre Y 20- 16- 12- 8-…
A: Utility means satisfaction. Utility is the satisfaction derived from the consumption of good.…
Q: explain what role the production possibility frontier has in the decision making process
A: Production possibility frontier (PPF) is a graphical representation of the distinct combinations of…
Q: For the last few months, we already heard of news pertaining to shortages on key agricultural…
A: ***Since the student has posted multiple questions, hence, the expert is required to solve only the…
Q: Suppose that there are T periods to maximize over. Show that the intertemporal budget constraint is…
A: The consumers utility depends on consumption of a composite good over two time periods. U = C1C2. C1…
Q: 2) Show that the cost function for a firm with the constant returns Cobb-Douglas production function…
A: Optimal input demand problem: The optimal input demand bundle is such that at that bundle the firm…
Q: Consider a monopolistically competitive firm in the short-run. The residual demand curve for the…
A: In a monopolistic competition market, the following two conditions are always satisfied in the long…
Q: buyers). What is most likely to be the new price buyers pay? a. $40 b. All of these are equally…
A: Answer:Let's go through each option to determine which is correct:a. $60:FreeThis option is correct.…
Q: GDP per capita is a widely used measure of economic well-being. Discuss the appropriateness of this…
A: Gross Domestic Product (GDP) refers to the proportion of the total monetary worth of all goods and…
Q: The following cost and benefit information has been estimated for a pump that has a 10-year useful…
A: Purchase Cost : The initial cost or price paid to acquire the pump.Annual Operating Cost : The cost…
Q: Use the following diagram to answer the question: Aggregate spending Total income, production As a…
A: Economic policy refers to the actions and measures taken by governments to manage and influence the…
Q: Please use the following debit and credit entries for various BO accounts (in billions of $) to…
A: The trade balance refers to the difference between the earning from exports of goods and services…
3. You’ve observed the following returns on Regina computer stock over the past five years: 7%, -12%, 11%, 38% and 14%
a.) What was the arithmetic average return on Regina stock over this five-year period?
b.) What was the variance of Regina returns over this period? The standard deviation?
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- The following data show the closing stock price of MNM Corporation for the last seven trading days. Please answer the following questions. Table 1 Day Stock Price 1 84 2 87 3 84 4 88 5 85 6 90 7 91 Range = ______________. Mean = ______________. Variance = ____________. Standard deviation = _________. (Round off your answer at 2 decimal places.) Coefficient of variation = ___________%. (Round off your answer at 2 decimal places.)You expect KT Industries (KTI) will have earnings per share of $4.6 this year and expect that they will pay out $1.66 of these earnings to shareholders in the form of a dividend. KTI's return on new investments is 11% and their equity cost of capital is 16%. KTI's dividend growth rate is _________ (Round to two decimal places) If KTI's dividend growth rate will remain constant, and KTI's next year dividend is $1.78, then KTI's current stock price should be ________ (Round to two decimal places)Which of the following statements about the current value of a short European call option on Warwick plc stock, a non-dividend-paying stock, is/are true? (a) The current value of a short European call option is less than or equal to zero. (b) The current value of a short European call option decreases as the volatility of returns on Warwick plc stock increases, holding all else constant. (c) The current value of a short European call option decreases as the price of Warwick plc stock increases, holding all else constant.
- Stock X has a 9.5% expected return, a beta coefficient of 0.8, and a 30% standard deviation of expected returns. Stock Y has a 12.0% expected return, a beta coefficient of 1.1, and a 30.0% standard deviation. The risk-free rate is 6%, and the market risk premium is 5%. Calculate the required return of a portfolio that has $7,500 invested in Stock X and $5,500 invested in Stock Y. Do not round intermediate calculations. Round your answer to two decimal places. rp = %QUESTION 2 Elizabeth has decided to form a portfolio by putting 30% of her money into stock 1 and 70% into stock 2. She assumes that the expected returns will be 10% and 18%, respectively, and that the standard deviations will be 15% and 24%, respectively. Describe what happens to the standard deviation of the portfolio returns when the coefficient of correlation ρ decreases. The standard deviation of the portfolio returns decreases as the coefficient of correlation decreases. The standard deviation of the portfolio returns increases as the coefficient of correlation increases. The standard deviation of the portfolio returns decreases as the coefficient of correlation increases. The standard deviation of the portfolio returns increases as the coefficient of correlation decreases.Given the following information, what is the standard deviation of the returns on a portfolio that is invested 35 percent in both Stocks A and C, and 30 percent in Stock B? (see attached chart)
- D&R A3 6-1 Question 6. VAR Calculation A firm has a portfolio composed of stock A and B with normally distributed returns. Stock A has an annual expected return of 15% and annual volatility of 20%. The firm has a position of $100 million in stock A. Stock B has an annual expected return of 25% and an annual volatility of 30% as well. The firm has a position of $50 million in stock B. The correlation coefficient between the returns of these two stocks is 0.3. Compute the 5% annual VAR for the portfolio. Interpret the resulting VAR.Elizabeth has decided to form a portfolio by putting 30% of her money into stock 1 and 70% into stock 2. She assumes that the expected returns will be 10% and 18%, respectively, and that the standard deviations will be 15% and 24%, respectively. Describe what happens to the standard deviation of the portfolio returns when the coefficient of correlation ρ decreases. The standard deviation of the portfolio returns decreases as the coefficient of correlation decreases. The standard deviation of the portfolio returns increases as the coefficient of correlation increases. The standard deviation of the portfolio returns decreases as the coefficient of correlation increases. The standard deviation of the portfolio returns increases as the coefficient of correlation decreases.QUESTION 1 Elizabeth has decided to form a portfolio by putting 30% of her money into stock 1 and 70% into stock 2. She assumes that the expected returns will be 10% and 18%, respectively, and that the standard deviations will be 15% and 24%, respectively. Compute the standard deviation of the returns on the portfolio assuming that the two stocks' returns are uncorrelated. 17.4%. 27.4%. 7.4%. 11.4%. QUESTION 2 Elizabeth has decided to form a portfolio by putting 30% of her money into stock 1 and 70% into stock 2. She assumes that the expected returns will be 10% and 18%, respectively, and that the standard deviations will be 15% and 24%, respectively. Describe what happens to the standard deviation of the portfolio returns when the coefficient of correlation ρ decreases. The standard deviation of the portfolio returns decreases as the coefficient of correlation decreases. The standard deviation of the portfolio returns increases as the coefficient…
- A firm is expected to pay a dividend of $1.35 next year and $1.50 the following year. Financial analysts believe the stock will be at their price target of $68 in two years.Compute the value of this stock with a required return of 10 percent. (Do not round intermediate calculations. Round your answer to 2 decimal places.)The Franko Company has a beta of 1.20 By what percent will the rate of return on the stock of Franko Company increase if the market rate of return rises by 3%?Which of the following statements is false? a. The slope of the security market line is measured by beta. b. Company-specific risk can be diversified away. c. The market risk premium is affected by attitudes about risk. d. Higher beta stocks have a higher required return.