4. The Sales manager of a company projected the following sales for the next year with the following probabilities: Sales ( $ Millions) $ 20 Scenario Probability 1 0.10 0.30 18 3 0.30 15 4 0.30 14 Required: a) Find the Variance; b) Find the standard deviation.
Q: Budgeted sales OMR 75000; Actual sales OMR 60000; then the variance will be: O a. OMR 15000…
A: In management accounting, variance analysis is the study of variations between actual and projected…
Q: owing variances are determined by Bulldogs Co.: · Sales Price Variance – 560,000 favorable · Cost…
A: The actual amount of sales and budgeted amount of sales may not be same due to the change in prices…
Q: his year’s total sales of Bulldogs Inc. is P4,600,000. The following variances are determined: ·…
A: Total sales variance is the difference between budgeted sales and actual sales. It can be due to…
Q: The returns of Al Maha Ceramics for the last four years are Year 1=(-35), Year 2=10, Year 3=25, Year…
A: Variance measures the change in actual asset price in relation to its average price. It is…
Q: Use the means and standard deviations of return for MSFT and TSLA in percent per month that are…
A: Opportunity set is the set of all possible portfolios that an investor may construct from a given…
Q: Budgeted sales OMR 60000; Actual sales OMR 75000; then the variance will be: O a. OMR 15000…
A: Solution:- Calculation of the variance as follows under:-
Q: The returns of Omantel for the last four years are Year 1=21, Year 2=10, Year 3=5, Year 4=(-2). The…
A: A stock is a financial security issued by a corporation. The return on a stock represents return…
Q: The expected price of an in one (1) year is ₱75 and its variance (σ2) is 0.64. The current price of…
A: The Formula used is shown:
Q: Suppose financial analysts believe that there are four equally likely states of the economy:…
A: Introduction Expected Return: The estimated return is the benefit or loss that an investor may…
Q: In a regression of the single-index model, the R-square is 66%, residual variance is 0.02, beta…
A: The regression analysis is a statistical procedure that allows us to find the linear association…
Q: Over the past 3 years an investment returned 0.15, -0.1, and 0.06. What is the variance of returns?…
A: Introduction:- The commitment of an asset to improve in value over time is referred to as…
Q: C). Your investment in A Limited earned the following returns for the years 1996 to 1999: 30%, 40%,…
A: Year Return 1996 30% 1997 40% 1998 15% 1999 7%
Q: Below are the monthly sales forcast and actual monthly sales for Company. Company has hired you to…
A: Sales variance is the difference between the actual sales and budgeted sales of an entity. Whereas…
Q: The returns of Al Maha Ceramics for the last four years are Year 1=(-35), Year 2=10, Year 3=25, Year…
A: The basic financial formula states that the variance of returns over a particular duration is equal…
Q: Use the information from this table to find the variance for each asset. State of Economy…
A: Formulas for asset J:
Q: The total market was estimated to 54,000 bushels at the time of budget. The actual total market for…
A: Summary of the relevant information to calculate market share variance as provided in the question :…
Q: The actual total sales and budgeted total sales of Bulldogs Inc. are P3,200,000 and P2,750,000. The…
A: Sales variance shows difference between actual sales and budgeted sales. It consists of variance due…
Q: Calculate the Expected Return and Risk measured in terms of standard deviation and Variance relating…
A: Formulas:
Q: Using the graph, answer the following standard deviation questions: 1. As the standard deviation for…
A: Hi, thanks for your question. “You have posted multiple sub-parts in this question. As per our…
Q: Variance and standard deviation (expected). Bacon and Associates, a famous Northwest think tank,…
A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…
Q: Market-share and market-size variances (continuation of 14-38). Miami Infonautics’ senior vice…
A: Market share variance: Market share variance computes the deviation between the actual market share…
Q: Market-share and market-size variances (continuation of 14-38). Miami Infonautics’ senior vice…
A: Market share variance:Market share variance computes the deviation between the actual market share…
Q: Rockport Industries Inc. gathered the following data for March: Planned Actual Sales price per…
A: Formula: Revenue price variance = Actual units sold x ( Actual price - planned price ) Deduction of…
Q: Mabuhay Corporation generated these gross profits during the past recent years when the sales price…
A: Sales volume variance: Sales volume variance is the measure of change in profit due to the…
Q: This year’s total sales of Bulldogs Inc. is P4,600,000. The following variances are determined: ·…
A: Change in sales = Sales price variance favorable + Sales volume variance unfavorable = 750,000 +…
Q: There are two projects, A and B. the following probability distribution for the projects are given…
A: Hello. Since your question has multiple sub-parts, we will solve first three sub-parts for you. If…
Q: Suppose financial analysts believe that there are four equally likely states of the economy:…
A: THERE ARE MANY QUESTIONS IN THIS. ANSWER OF ONLY FIRST 3 SUBPARTS OF QUESTION WILL BE PROVIDED. FOR…
Q: 14. SNOFI Inc.'s manager believes that economic conditions during the next year will be strong,…
A: Expected return refers to the anticipated amount of profit or loss that an investor calculates from…
Q: The covariance of returns between Exxon Mobile Corporation (XOM) and Costco Wholesale Corporation…
A: Covariance and standard deviation are related through the coefficient of correlation between the two…
Q: This year’s total sales of Bulldogs Inc. is P4,600,000. The following variances are determined: ·…
A: Sales variance shows difference in actual sales and budgeted sales. This may be due to difference in…
Q: 14. Consider the following possible returns over the next year on an asset Return probability -£40…
A: Expected return = ∑p*r Variance = ∑p*(r-E(r))2
Q: Conestoga Ltd. has the following estimated probability distribution of returns.…
A: The computation of expected return, variance, standard deviation and coefficient of variation as…
Q: Variance and standard deviation (expected). Hull Consultants, a famous think tank in the Midwest,…
A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…
Q: Consider the following five monthly returns: 0.04 −0.03 0.03 0.07 −0.02 a. Calculate the…
A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: Assume an initial starting Ft of 300 units, a trend (Tt ) of eight units, an alpha of 0.30, and a…
A: So we are given past forecast demand, actual demand and need to forecast demand for the future…
Q: Bulldogs Inc. presents the following amounts: 2021 2020 Variances P247,500 P200,00 P47,500 Favorable…
A: Let Expected Units for 2020 = 100 units Therefore for 2021 = 100+20% =120 units Formula For Cost…
Q: . A manager is using the equation Y(t) = 6400 + 70t to forecast quarterly demand for a product. In…
A: The following calculations are done by the manager to get the result of forecasts of the last…
Q: The following sales were budgeted for the year: Product A Product B Product C Demand (units)…
A: Particulars Product A Product B Product…
Q: In response to poor sales, the sales manager of As a result, the operating statement at the end of…
A: We need to analyze the reason given for variances.
Q: The budget of a company for next period shows that it would breakeven at a sales value of GHC800000…
A: At break even, Fixed costs = contribution margin so, contribution margin = 320000 contribution…
Q: Below is some comparative data for ABC Company. Management wants us to investigate variances between…
A: Variance is the change in current year amount based on change in previous year amount. Variance =…
Q: The expected price of an in one (1) year is ₱75 and its variance (σ 2 ) is 0.64. The current price…
A: Expected price in one year - ₱75 Variance (σ 2 ) - 0.64 Current price of the asset - ₱65 Reference…
Q: The returns of Al Maha Ceramics for the last four years are Year 1=(-35), Year 2=10, Year 3=25, Year…
A: Solution: Mean of returns = (-35+10+25+28) / 4 = 7 X X-Mean (X-Mean)^2 -35 -42 1764 10 3 9…
Q: 1. Calculate the Expected Rate, Standard Deviation, Variance and Coefficient of variation and decide…
A: The expected return is an anticipated return from a stock, which is calculated y estimating the…
Q: Use this problem to answer the following requirements: Mabuhay Corporation generated these gross…
A: Sales volume variance is the difference between the budgeted sales and the actual sales of a…
Q: Assume that a project is expected to produce the following cash flows in each year, each periodic…
A: NPW FORMULA: NPW = -initial value +present value of future cashflow
Q: ompute the followings: a. A project has a budget of $15M and scheduled for 1 year. It is assumed…
A: Cost variances: The cost variance is the net of the earned value and the actual cost. The…
please see attatched file
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Expected Return, Variance, Std. Deviation and Cofficient of Variation:Magee Inc.'s manager believes that economic conditions during the next year will be strong, normal, or weak, and she thinks that the firm's returns will have the probability distribution shown below. What's the standard deviation of the estimated returns?Round your answer to two decimal places. For example, if your answer is $345.6671 round as 345.67 and if your answer is .05718 or 5.7182% round as 5.72. State of the Economy Probability of State Occurring Stock's Expected Return Boom 20% 24.15% Normal 50% 13.50% Recession 30% –13.30% Group of answer choices 15.68% 16.39% 14.26% 13.54% 10.69%Expected Return, Variance, Std. Deviation and Cofficient of Variation:Magee Inc.'s manager believes that economic conditions during the next year will be strong, normal, or weak, and she thinks that the firm's returns will have the probability distribution shown below. What's the standard deviation of the estimated returns?Round your answer to two decimal places. For example, if your answer is $345.6671 round as 345.67 and if your answer is .05718 or 5.7182% round as 5.72. State of the Economy Probability of State Occurring Stock's Expected Return Boom 20% 22.20% Normal 50% 12.90% Recession 30% –11.40%Expected Return, Variance, Std. Deviation and Cofficient of Variation:Magee Inc.'s manager believes that economic conditions during the next year will be strong, normal, or weak, and she thinks that the firm's returns will have the probability distribution shown below. What's the standard deviation of the estimated returns?Round your answer to two decimal places. For example, if your answer is $345.6671 round as 345.67 and if your answer is .05718 or 5.7182% round as 5.72. State of the Economy Probability of State Occurring Stock's Expected Return Boom 30% 21.60% Normal 55% 13.50% Recession 15% –11.35% A. 11.04% B. 12.10% C. 9.47% D. 10.52% E. 9.99%
- Your rate of retum expectations for the common stock of Company during the next year are: Possible Rate of Return Probability- 0.10 0.250.00 0.150.10 0.350.25 0.25 Required: Compute the expected return [E(R)] on this investment, the variance of this returm, and its standard deviationConsider the following information regarding a new investment that a company intends to undertake:. State of the Economy Probability Market Return Investment Return Expansion 0.30 40% 60% Normal 0.50 10% 25% Recession 0.20 -15% -40% a). Compute the variance and standard deviation of eachYour rate of return expectations for the stock of Kayleigh Cosmetics Company during the next year are: KAYLEIGH COSMETICS CO. Possible Rate of Return Probability −0.60 ............0.15 −0.30 ............0.10 −0.10 ............0.05 0.20 ............0.40 0.40 ............0.20 0.80 ............0.10 a. Compute the expected return [E(Ri)] on this stock, the variance (σ2) of this return, and its standard deviation (σ).
- Use this problem to answer the following requirements: Mabuhay Corporation generated these gross profits during the past recent ears when the sales price was 10% lower during 2020 compared to 2019. 2020 Sales P1,944,000; 2020 Cost of Sales P1,152,000; 2019 Sales P1,900,800; 2019 Cost of Sales P1,113,600. The sales volume variance must be?Consider the following information: State Probability ABC, Inc. Return Boom .25 0.15 Normal .50 0.08 Slowdown :15 0.04 Recession .10 -0.03 What is the expected return? What is the variance? What is the standard deviation?Suppose financial analysts believe that there are four equally likely states of the economy: depression, recession, normal, and boom. The returns on the Supertech Company are expected to follow the economy closely, while the returns on the Slowpoke Company are not. The return predictions are as follows: States of the economy Depression -20% 5% Recession 10% 20% Normal 30% -12% Boom 50% 9% •Required: 1.For each company calculate: i.the expected returns ii.the Variance iii.the Standard deviation 2.For each company calculate and explain: i.The covariance ii.The correlation 3.Assuming you are an investor with GHS100 available. If you invest GHS60 and GHS40 in Allos Inc. and Orangus Inc. respectively, what will be your portfolio returns? 4.Calculate the Standard deviation of the portfolio.
- 1. Over the past 3 years an investment returned 0.18, -0.11, and 0.08. What is the variance of returns?Suppose financial analysts believe that there are four equally likely states of the economy: depression, recession, normal, and boom. The returns on the Supertech Company are expected to follow the economy closely, while the returns on the Slowpoke Company are not. The return predictions are as follows: States of the economy Allos Inc. Returns (RA) Orange Inc. Returns (RB) Depression -20% 5% Recession 10% 20% Normal 30% -12% Boom 50% 9% Required: 1.For each company calculate: i.the expected returns ii.the Variance iii.the Standard deviation 2.For each company calculate and explain: i.The covariance ii.The correlation 3.Assuming you are an investor with GHS100 available. If you invest GHS60 and GHS40 in Allos Inc. and Orangus Inc. respectively, what will be your portfolio returns? 4.Calculate the Standard deviation of the portfolio.We have 50 years of annual data on (detrended) ex post prices P∗ t and on (detrended) actual stock prices Pt . We find that the sample variances (svar) are as follows: svar(P∗ t ) = 120 and svar(Pt) = 80. What does this tell us and why?
