George has projections for the 3 alternative investments in equity shares (stock): What is the Standard Deviation in portfolio 2? State ofEconomyBoomRecessionProbability ofState Economy40.00%60.00%Rate of Return if State of Economy occursStock Ice Bear Stock Grizzly Stock Panda10.00%8.00%15.00%4.00%20.00%0.00%

A standard deviation (or σ) is a proportion of how distributed the data is corresponding to the…

Answered: State of Economy bom ecession…

State of Economy bom ecession Probability of State Economy 40.00% 60.00% Rate of Return if State of Economy occurs Stock Ice Bear Stock Grizzly Stock Panda 10.00% 8.00% 15.00% 4.00% 20.00% 0.00%

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: Question 2 Q 0 2 3 8 3 TC 5 M VC ZN What is the correct value for M? FC G AC 6 AVC H 5 AFC MC 3

A: At the marketplace, when a firm producing output, there are different types of cost associated with…

Q: 4 of 100 credit union A is a not-for-profit, member-owned financial cooperative that offers checking…

Q: An increase in the excise tax on a pack of cigarettes will: A. Shift the demand for cigarettes in…

A: Excise tax is a type of indirect tax which imposed by the government on the sale of particular…

Q: The perfectly competitive output level is Pareto-optimal because at this output level Paras output…

A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: The difference between economic profit and accounting profit is that economic profit is calculated…

A: Introduction A producer will be in equilibrium if he maximize his revenue and minimize his cost.…

Q: Pegion, in part because of high union-negotiated wages. He would like to work at the high union wage…

A: Unemployment refers to situation where a worker is capable and want to work but still does not find…

Q: 5. Product Choices You are trying to figure out what combination of Products A and B to buy, given…

A: The marginal utility refers to the change in the total utility when one additional unit of good is…

Q: Valdemar is a small, open economy. If the world real interest rate increases, in the long run, which…

A: In the international market, Anu change in the interest rate of a country will affect the demand for…

Q: What is a market

A: An Area is one of a market's fundamental characteristics. In terms of economics, a market refers to…

Q: Which of the following examples describe the "adverse selection problem"? ntara contoh berikut, yang…

A: Disclaimer: “Since you have asked multiple questions, we will solve the first question for you. If…

Q: Discuss the nominal money demand concept in the monetary intertemporal model. Support your answer…

A: Money Demand The entire quantity of money that the populace of an economy wishes to own is the…

Q: The difference between economic profit and accounting profit is that economic profit is calculated…

A: Economic profit and accounting profit are the two measurements that are used by a firm to analyze…

Q: Suppose the production of two goods (books and shoes) require the use of two types of inputs (labor…

A: Thank You for the question. As per Bartleby answering guidelines, we can answer only 1 question in…

Q: Tyson and Ella work at the Ruby Red Movie Theater in town. After work, they decide to watch a movie.…

A: In a simple economic model, the circular flow diagram depicts how an economy is structured.…

Q: ymakers are provided data about the private and social benefits of a good being sold in the market.…

A: An externality is a cost or benefit associated with the production or consumption which is borne or…

Q: Examples of public services provided by the government to households

A: Public services refer to the various benefits and amenities provided by the government to its…

Q: as Canada benefited from NAFTA? If yes, how? Kindly support with references. 300 to 400 words

A: Answer is given below

Q: ligopoly markets are less competitive than _____________, but more competitive than ____________.

A: An oligopoly market is the market structure in which there are few firms and each firm produces a…

Q: The World Bank projects that the world's population will increase from 7.6 billion in 2019 to 8.6…

A: The World Bank is an international association that gives financing, guidance, and examination to…

Q: Consider the following data. 10,11,7,2,4,−410,11,7,2,4,−4 Copy Data Step 1 of 3: Determine the…

A: The mean of a certain amount of data is the sum of its total value divided by the number of…

Q: Explain and calculate Price Elasticity in an example you come up

A: The price elasticity of demand measures the change in demand of a good or service in response to a…

Q: Social efficiency consists of which of the following: the sum of consumer and producer surplus the…

A: The sum of consumer surplus and producer surplus is total surplus. i.e., Total surplus = Consumer…

Q: GRAPH 100 90 80 70 20 10 01 COORDINATE PAIRS 10.00 1 20.00 2 30.00 3 40.00 50.00 S 60.00 6 SETTINGS…

A: The following graph represents an upward sloping curve with the given coordinate pairs: X 0 1 2 3…

Q: 4. Profit maximization and loss minimization BYOB is a monopolist in beer production and…

A: Firms enter the business to procure a profit. Nonetheless, how much profit procured by the firm…

Q: Component of agriculture

A: Agriculture economics is the study of agricultural practices, situations, and policies from a…

Q: 6. Calculating inflation using a simple price index Consider a fictional price index, the College…

A: Price index, proportion of relative price changes, comprising of a progression of numbers organized…

Q: Economics Explain the logic behind Say's law and how it really only makes sense in a barter economy…

A: This Say's law implies that 'supply generally drives its own demand. There can't be general…

Q: Given a Cobb Douglas production function KX^aY^b Derive the Cost Function. [Note the Cost Function…

A: Given Production function y=KXaYb .... (1) To find the cost function, we have to solve the…

Q: When government changes the government purchases by $1, the national income will change by more than…

A: Government makes intervention in the economic activities to drive up economic growth. The impacts of…

Q: Fatima shop demand and supply function of a particular goods is given as: Qs=2P, Qd=140-5p 1. find…

A: Demand and Supply Demand refers to the quantities of a commodity that the consumers are ready to…

Q: A forecaster used the regression equation Q=a+b+q+c202 + c303 and quarterly sales data for…

A: Given information: A forecaster used the following regression equation Qt = a + bt +c1D1 +c2D2 +…

Q: 1. A firm sells 150 units of output at a price of $8 each. The economic cost of producing the 150…

A: Here, given information is, Output sold: 150 units Selling price: $8 each Economic cost of…

Q: A progressive income takes a ncome O flat; declines O larger; rises smaller; rises percentage of…

A: An income tax is a tax forced on individuals in regard of the income earned by them. Income tax for…

Q: The Bureau of Public Highways is considering possible types of road surfacing with cost estimates…

A: We are going to use pw approach to answer this question.

Q: Effect of tax on economic activity Suppose a per unit tax is imposed on perfectly competitive,…

A: Perfect Competition Market Perfect competition refers to a type of market where there are many…

Q: Given the Production function for Mwaba & Mutale Enterprises as follows: Q = f (k,l) = 300k 2l2 - k…

A: Introduction Production is said to be the transformation of input into output. Total product is the…

Q: Economics QUESTION TWO a)Suppose May start working as Economic Lecturer at age 25 years and earn…

A: The life cycle hypothesis states that people in their life times save when they have more incomes…

Q: Q)What are some reasons that health care markets may not be perfectly competitive? a. Many types…

A: A perfectly competitive firm is characterized by five factors: 1. Infinite number of buyers and…

Q: Suppose the demand function for good x is given as: Qd=-1.1Px +0.7P, -0.5P₂ + 0.025M - 0.05T where…

A: Please find the answer below. DEMAND FUNCTION: The demand function shows the functional…

Q: Attempts Keep the Highest/3 8. Interest, inflation, and purchasing power Suppose Alyssa is a sports…

A: Given Deposits = 1000 $ nominal interest rate = 5 % Price of baseball cap = 10 $

Q: The manager of a bicycle shop has found that, at a price (in Rands) of p(x) = 150 –x/4 per bicycle,…

A: Given information: p(x) = 150 - (x /4) Where p(x) is the price of the bicycle sold (in Rands) x is…

Q: Problem 2 Refer to problem 1.(Problem 1: Auto Mart is a mythical seller of a variety of automobile…

A: Given Holding cost (H) =US$2.50 Order cost (S)= US$50 Annual demand for wiper blades = 16000…

Q: Which statement is INCORRECT? Statisticians use the prices of goods and services like a ruler to…

A: Introduction Gross domestic product is the market value of final goods and services produced during…

Q: A good's demand is given by: Q = 100 - 20P. At Q = 20, what is the point price elasticity?

Q: QUESTION 9 4 Ain) is a network device commonly used to display project schedules. It was developed…

A: In economics, there are numerous mathematical and statistical tools used to display and determine…

Q: 622) The accompanying table lists the cross-price elasticities of demand for several goods, where…

A: The cross elasticity of demand measures the responsiveness of one good's quantity demanded when the…

Q: Give an example of Oligopoly market and a Simultaneous Move Game you observe in this market

A: The oligopoly market is just like the market of monopolist but here there are more sellers but the…

Q: A futures market trades contracts on the growth rate for nominal GDP. The contract pays $X to the…

A: Given information: A future market trades contracts on the growth rate for nominal GDP. The contract…

Q: Calculate the marginal rate of substitution (MRS12) for the following utility function: U(91,92)…

A: Marginal rate of technical substitution is the rate at which one input is the substituted for other.

Q: Consider a perfectly-competitive industry where each firm has the following long run cost function…

A: A perfectly competitive firm aims to maximize profit, it does so by producing at the output level at…

Question

George has projections for the 3 alternative investments in equity shares (stock): What is the Standard Deviation in portfolio 2?

State of
Economy
Boom
Recession
Probability of
State Economy
40.00%
60.00%
Rate of Return if State of Economy occurs
Stock Ice Bear Stock Grizzly Stock Panda
10.00%
8.00%
15.00%
4.00%
20.00%
0.00%

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Chambers Company has just gathered estimates forconducting a break-even analysis for a new product.Variable costs are $7 a unit. The additional plant willcost $48,000. The new product will be charged $18,000a year for its share of general overhead. Advertisingexpenditures will be $80,000, and $55,000 will be spenton distribution. If the product sells for $12, what is thebreak even point in units? What is the break even pointin dollar sales volume?
A fabrication company engaged in production with a capacity of 150, 000 pieces per year. But, it is just operating at 70% of its full capacity. The company has an annual income of P 250, 000.00, annual fixed cost are P 50, 000.00 and variable costs are P 1.00 per unit. How many productions of parts must be produced for break-even point? Given: Required: Solution: refer to this textbook: https://drive.google.com/file/d/1h4ra80IE8IRtYyja16iK6TtjCrTDi73j/view?usp=sharing
Problem Solving. Solve the following problems completely. 4. Atty. Gacayan invested P280, 000 which will be used in a project that will produce auniform annual revenue of P180,000 for 5 years and then have a salvage value of 16% ofthe investment. Out-of-pocket costs for operation and maintenance will be P80,000 peryear. Taxes and insurance will be 3% of the first cost per year. Atty Gacayan expectscapital to earn not less than 30% before income taxes. Determine if the investment is goodand Calculate the following:a. Calculate using Rate of Return Method.b. Payback period of the investment.
Lim Bon Fing Y Hermanos Inc has offered for sale its two-storey building in thecommercial district of Cebu City. The building contains two stores on the ground floor anda number of offices on the second floor.A prospective buyer estimates that if he buys this property, he will hold it for about 10years. He estimates that the average receipts from the rental during this period to beP350,000.00 and the average expenses for all purpose in connection with its ownershipand operation (maintenance and repairs, janitorial services, insurance, etc.) to beP135,000.00. He believes that the property can be sold for a net of P2,000,000 at the endof the 10th year. If the rate of return on this type of investment is 7%, determine thecash price of this property for the buyer to recover his investment with a 7% return beforeincome taxes.ANSWER: P2,526,768.61
Given EVM data, estimate the cost at completion of a project using the method "EAC based on combined cost and schedule performance." BCWS = $82.2M BCWP = $70.5M ACWP = $95.5M BAC = $105.5M A) $130M B) $150M C) $160M D) $170M
Solar plant investment or cost establish 40000$, Maintenance Cost Expected customer Demand (KWH) Year 0 0 0 350 1500 1 300 1200 2 200 1000 3 200 800 4 150 700 5 What is the cost Consumption Kilowatt Per Hour? please tell me how can I solve it , as you know we have Present worth, annual worth and future worth! please i need correct answer because i have post it before and they give me wrong answer , do not search it because these number is randomly , i am looking for the way of answer in case of the question has change that i can solve it by your clarification . rate 10%
You need to determine whether a project is profitable or not in a long run. Based on the data given, which of theseprojects will be profitable according to engineering economy methods?a. θ = 3 yrs., Net Value: 0b. Accumulated (without interest) net values of the revenues, expenses and investments after 5 years is +300.c. Accumulated (without interest) net values of the revenues, expenses and investments after 4 years is +100.d. θ = 6 yrs., Net Value: +400
Consider these two alternatives.Alternative A Alternative BCapital investment OMR 6000 7500Annual revenues OMR 1800 2250Annual expenses OMR 500 750Estimated market valueOMR1200 1600Useful life 10 10MARR 12% 1. Recommend which alternative should be selected.2. How much capital investment of the expensive alternative have to vary so that theinitial decision would be reversed.
A business invests $5000 and initially plans to achieve annual revenue of $1100/yr with $200/yr expenses (starting at the end of ar 1) for ten years. No market value if used for ten years. 1.If at the end of the sixth year, instead, the investment is sold for $1000, calculate the PW, FW and AW for a BTCF MARR of 12%. Is the investment a good one if used this way? Why?
BASED ON ESTIMATES THE DATA FOR TWO TYPES OF BRIDGES WITH DIFFERENT LIVES ARE AS FOLLOWS. IFTHE MINIMUM RATE OF RETURN IS 9%, DETERMINE W/C PROJECT IS MORE DESIRABLE. TIMBER BRIDGE STEEL BRIDGEFIRST COST P 50,000.00 P 140,000.00SALVAGE VALUE 2,000.00 10,000.00LIFE IN YEARS 12 36ANNUAL MAINTENANCE 6,000.00 2,500.00EVALUATE USING:A.) THE ANNUAL COST METHODB.) PRESENT WORTH COST METHODC.) RATE OF RETURN METHOD
1. The Present Worth Method A project your firm is considering for implementation has these estimated costs and revenues: an investment cost of $50,000; maintenance costs that start at $5,000 at the end of year (EOY) 1 and increase by $1,000 for each of the next 4 years, and then remain constant for the following 5 years; savings of $20,000 per year (EOY 1–10); and finally a resale value of $35,000 at the EOY 10. If the project has a 10-year life and the firm’s MARR is 10% per year, what is the present worth of the project? Is it a sound investment opportunity?
A project is being considered that has a first cost of $12,500, creates $5000 in annual cost savings, requires $3000 in annual operating costs, and has a salvage value of $2000 after a project life of 3 years. If interest is 10% per year, which formula calculates the project’s present worth? (a) PW = 12,500(P/F, 10%, 1) + (− 5000 + 3000) (P/A, 10%, 3) − 2000(F/P, 10%, 3) (b) PW = − 12,500 + (5000 − 3000) (P/A, 10%, 3 ) − 2000(P/F, 10%, 3) (c) PW = 12,500(F/P, 10%, 3) + (5000 − 3000) (F/A, 10%, 3) + 2000 (d) PW = − 12, 500 + 5000(P/A, 10%, 3) − 3000 (P/A, 10%, 3) + 2000(P/F, 10%, 3)