Suppose that the stock return follows a normal distribution with mean 20% and standard deviation 40%. What is the 5% VaR (value-at-risk) for this stock

Answers

Answer 1

Answer:

The 5% VaR (value-at-risk) for this stock 0.858

Explanation:

Value at risk determines the value of the investment at risk of loss. It shows how much of the investment might lose in the given market conditions.

Now deter,ine the value at risk formula

Var = Mean + Standard Deviation x Z score value

Where

Mean = 20%

Standard Deviation = 40%

Z score value = Z Score at significance 5% = 1.645

Placing values in the formula

Var = 20% + 40% x 1.645

Var = 0.2 + 0.4 x 1.645

Var = 0.2 + 0.658

Var = 0.858


Related Questions

inventory g Ronald Homes purchased land for development for $2,500,000. The land will be parceled into lots and sold for vacation homes as follows: 10 lots (Type A) to sell for $100,000 each; 15 lots (Type B) to sell for $70,000 each; and 20 lots (Type C) to sell for $50,000 each. At what amount should Ronald Homes record the Type B lots

Answers

Answer:

Ronald Homes

The amount at which Ronald Homes should record Type B lots is $860,656 while each should be recorded at $57,377.

Explanation:

a) Data and Calculations:

Cost of land for development = $2,500,000

Land parceled into lots as follows:

Type A (10 lots) to sell for $100,000 each = $1,000,000

Type B (15 lots) to sell for $70,000 each =     1,050,000

Type C (20 lots) to sell for $50,000 each =   1,000,000

Total sales value =                                         $3,050,000

Type A lots to be recorded at $1,000,000/$3,050,000 * $2,500,000

= $819,672

Type B lots to be recorded at: $1,050,000/$3,050,000 * $2,500,000

= $860,656

Type C lots to be recorded at $1,000,000/$3,050,000 * $2,500,000

= $819,672

Strengths and weaknesses Group of answer choices should be kept confidential. are areas of high and low capability. relate to the external environment. are an outcome of strategic implementation.

Answers

Answer: are areas of high and low capability.

Explanation:

Strength and weakness are areas of high and low capability. Some examples of the strengths that an organization has include large market share, strong employee attitudes, economies of scale, hug integrity etc. These gives an organization an edge over its rivals.

The weakness of an organization makes such organization lag behind its rivals.

Your roommate asks for a loan, offering to make weekly payments of $25 for two years. If the appropriate interest rate is 8.25% APR, compounded weekly, how much would you be willing to lend her today

Answers

Answer:

You should be willing to lend your roommate the sum of $2,395.08 today.

Explanation:

a) Data and Calculations:

Weekly loan repayment = $25

Period of loan = 2 years

Interest rate = 8.25% APR, compounded weekly

b) Using online finance calculator:

FV (Future Value) $2,824.37

PV (Present Value) $2,395.08

N (Number of Periods) 104.000

I/Y (Interest Rate) 0.159%

PMT (Periodic Payment) $25.00

Starting Investment $0.00

Total Principal $2,600.00

Total Interest $224.37

Assume you could either open a lemonade stand near a college campus and sell 80 cups of lemonade for $.50 per cup in one day or open a stand selling brownies and sell 50 brownies in one day for $1 each. In terms of dollars, what would be your opportunity cost of selling lemonade for one day

Answers

Answer:

$50

Explanation:

If marginal business tax rates are decreased, how will aggregate supply and employment change in the long run

Answers

Answer:

If corporate tax rates decrease, this should shift the aggregate supply curve tot he right, increasing total quantity supplied and price level. An increase in the quantity supplied should eventually make that producers hire more workers, therefore, the unemployment rate should decrease.

Explanation:

"Tom, at Bode Corporation we align our individual goals with the company's goals.
That is, as managers, we use
to drive ourselves and our employees
to accomplish key goals that are linked with the company's success," said Tom's new
CEO.
remuneration
contingency management
quantitative management
management by objective
time-and-motion studies

Answers

Contingency Management

Suppose the demand for apples becomes more elastic. All else equal, this means that the same change in price will result in

Answers

Answer:

a greater change in quantity demanded

Explanation:

Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.

Price elasticity of demand = percentage change in quantity demanded / percentage change in price

If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.

Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one

Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded.

Drag each tile to the correct box.
Match each characteristic of a successful blog to the correct description.
creates the need for people to continue reading
proves to readers thazine information is trustworthy
clearly expresses an idea for readers to understand easily
credibility
conciseness
regular schedule

Answers

Answer:

1. Regular schedule.

2. Credibility.

3. Conciseness.

Explanation:

A blog can be defined as an informative or discussion-based website that is updated regularly and published over the internet. The informations that are posted on a blog are usually done chronologically.

Basically, the characteristics of a successful blog are;

1. Regular schedule: creates the need for people to continue reading. Thus, informations posted on blogs are to be updated and made available to the audience at regular intervals.

2. Credibility: proves to readers that this information is trustworthy. You should ensure you always post information that are factual, credible and trustworthy.

3. Conciseness: clearly expresses an idea for readers to understand easily. You should write in a simple and straightforward manner without the use of ambiguous or complex words.

What amount is recorded for a nonmonetary asset acquired in exchange for another nonmonetary asset when the exchange has commercial substance

Answers

Answer:

The fair value of the asset given up, with a gain or loss recognized.

Explanation:

In Financial accounting, Accounts Receivable are considered to be a current asset because it is the payment a business firm would receive from its customers for goods purchased or services taken on credit. Also, accounts receivable are recorded in the current assets section of the balance sheet because they add value to a business firm.

Generally, current assets are considered to be liquid because they are listed on the balance sheet in the order (descending) in which they are expected to turn or be converted to cash within a relatively short term period.

The amount recorded for a nonmonetary asset acquired in exchange for another nonmonetary asset when the exchange has commercial substance is the fair value of the asset given up, with a gain or loss recognized.

Additionally, the par value of an asset such as a bond is its face value and it comprises of its total dollar amount as well as its maturity value. Also, the par value of a bond gives the basis on which periodic interest is paid.

A bond is issued at par value when the market rate of interest is the same as the contract rate of interest. This simply means that, a bond would be issued at par (face) value when the bond's stated rated is significantly equal to the effective or market interest rate on the specific date it was issued.

which factor plays the biggest role in motivating economic decisions in a traditional economy?

Answers

Answer:

These are the answer choices for the question:

A. Cooperation between governments and citizens

B. Commitment to maintaining long-standing customs

C. Corruption in the leadership of powerful groups

D. Competition between different businesses

And this is the correct answer choice:

B. Commitment to maintaining long-standing customs

Explanation:

Traditional economies are economies that have not yet industrialized, that tend to be small-scale, and that give great weight to traditions when taking economic decisions, precisely.

Examples of traditional economies can be seen in nomadic, semi-nomadic, and pastoralist peoples, who often lack enough economic complexity to become large populations with complex poltiical and economic institutions.

In these societies, economic decisions may be guided more by the insight of a leader, than by economic rationality per se, as long as the bare minimum needs for survival are met beforehand.

There are factors plays the biggest role in motivating economy decisions in a market economy. The factor is Competition between different businesses.

A traditional economy is known to be a type of economic system where local or traditions, customs, and beliefs help defines the goods and services the economy creates, and also rule and way of their distribution.

Countries often this type of economic system and they are said to be rural and farm-based. Examples includes nomadic, semi-nomadic, and pastoralist etc.

See answer choices below

A. Cooperation between governments and citizens

B. Commitment to maintaining long-standing customs

C. Corruption in the leadership of powerful groups

D. Competition between different businesses

Learn more about Economy from

https://brainly.com/question/1169360

Borrowers who believe they will be in a home for only a short period of time would be good prospects for a/an:

Answers

Answer:

Hard money loan

Explanation:

Options "A) no interest loan, B) adjustable-rate loan, C) Convertible loan, D) Hard money Loan"

Hard money loan is a way to raise money quickly, usually taken out for a short time but at a higher cost and lower LTV ratio. The terms of hard money loans are often negotiated between the lender and the borrower. This type of loans use the property of the borrower as collateral and does not rely on the creditworthiness of the borrower.

The Impala Company issues $5,000,000, 7.8%, 20-year bonds to yield 8% on 1/1/16. Interest is paid on June 30 and December 31. The bonds sold for $4,901,036. Using straight-line amortization, compute the 12/31/18 carrying value of the bonds.

Answers

Answer:

carrying value at the end of 2018 = $4,915,880.60

Explanation:

the journal entry to record the sales of the bonds

Dr Cash 4,901,036

Dr Discount on bonds payable 98,964

    Cr Bonds payable 5,000,000

Amortization of bond discount per year = $98,964 / 20 years = $4,948.20

Accumulated amortization for the first 3 years (2016, 2017, 2018) = $14,844.60

carrying value at the end of 2018 = $4,901,036 + $14,844.60 = $4,915,880.60

the Quality Control element most directly related to assuring that the company has sufficient personnel with needed competence, capabilities, and commitment is

Answers

Answer:

Human resources (HR).

Explanation:

The Quality Control element most directly related to assuring that the company has sufficient personnel with needed competence, capabilities, and commitment is Human resources (HR).

Human resources (HR) can be defined as an art of managing, controlling and improving the number of people (employees or workers), functions, activities which are being used effectively and efficiently by an organization.

Hence, human resources managers are saddled with the responsibility of managing and improving the welfare and working conditions of the employees working in an organization.

c. Suppose that the total amount to be paid under the contract with the city is estimated at $14,000 but may be adjusted to $12,000 next year during the review of the city budget. What amount from the contract, if any, should Brown Thumb recognize as income this year

Answers

Answer:

$14,000

Explanation:

The amount that should reported as the income for this year is $14,000 as if he takes the other amount so he wants to adjust the amount in order to reconcile the real amount of income

So as per the given situation this year amount i.e. $14,000 would be considered and the other amount i.e. $12,000 would be ignored

SO the same is to be relevant

g explain which types of organizations (if any) will traditional HRM fit most and which types of organizations (if any) will strategic HRM fit most

Answers

Answer:

HR Function refers to areas such as recruitment, selection, recruitment and retention, performance evaluation, promotional preparing, and reimbursement managerial staff.

Explanation:

Throughout traditional HRM every one of these operations has been associated with capacity building and therefore are constrained even within the HR manager. Those other operations are not focused on an organization’s strategy.Traditional HRM is therefore not focused on effective organizational culture, while strategy Implementation focuses on its philosophy.

Situation I On January 1, 2020, Bramble, Inc. signed a fixed-price contract to have Builder Associates construct a major plant facility at a cost of $4,446,000. It was estimated that it would take 3 years to complete the project. Also on January 1, 2020, to finance the construction cost, Bramble borrowed $4,446,000 payable in 10 annual installments of $444,600, plus interest at the rate of 10%. During 2020, Bramble made deposit and progress payments totaling $1,667,250 under the contract; the weighted-average amount of accumulated expenditures was $889,200 for the year. The excess borrowed funds were invested in short-term securities, from which Bramble realized investment income of $269,200. What amount should Bramble report as capitalized interest at December 31, 2020

Answers

Answer:

$88,920  

Explanation:

capitalized interest = weighted average accumulated expenditure for the year x interest rate of the loan = $889,200 x 10% = $88,920

Capitalized interest can be added to the basis of the new building that is being constructed. This way, the building's depreciable value will increase.  

Marcy Company did not pay any dividends in 2004. In 2005, they declared and paid total dividends of $4,000, and in 2006, they declared total dividends of $20,000. How much dividends will be paid to preferred and common stockholders in 2006

Answers

Answer:

Dividends paid to preferred and common stockholders in 2006 will be :

Preferred stockholders get $20,000

Common stockholders get $0

Explanation:

Hie , I have attached the full question as an image below.

Preferred Stockholders received their dividends first before the common stockholders do. This is because the Preferred Equity have first preference when it comes to payments of dividends.

Also, when the dividends are cumulative, it means that the previous amounts of dividends not paid are payable in future when the distribution is made. Preference dividends are payable as a fixed amount of stocks outstanding during the reporting period.

That said, the amounts of dividends to be paid to preferred and common stockholders in 2006 can be calculated as follows :

2004

Dividends Declared = $0

Preference dividends Payable = ($100,000 + $250,000) × 6 % = $21,000

Paid to Common Shareholders  = $ 0

2005

Dividends Declared = $4,000

Paid to Preference Shareholders = $4,000

Paid to Common Shareholders  = $ 0

Payable to Preference Shareholders = $17,000 (2004) + $21,000 (2005) = $38,000

2006

Dividends Declared = $20,000

Paid to Preference Shareholders = $20,000

Paid to Common Shareholders  = $ 0

Payable to Preference Shareholders =  $18,000 (2005) + $21,000 (2006) = $39,000

The shareholders' equity of Green Corporation includes $398,000 of $1 par common stock and $580,000 par of 7% cumulative preferred stock. The board of directors of Green declared cash dividends of $68,000 in 2018 after paying $38,000 cash dividends in each of 2017 and 2016. What is the amount of dividends common shareholders will receive in 2018

Answers

Answer:

$22,200

Explanation:

The computation of the dividend amount made to the common shareholders is shown below:

Arrear in Preferred Stock Dividend is

= $580,000 × 7% × 2 - $38,000 - $38,000

= $5,200

Now

Current Preferred Stock Dividend is

= $580,000 × 7%

= $40,600

Now

The amount of dividends made to the common shareholders is

= $68,000 - $40,600 - $5,200

= $22,200

P&G sells cosmetics, laundry detergent, and products like Pringles to the ________ market by establishing strong brand images, developing superior products, ensuring their availability, and backing them with engaging communications and reliable performance"

Answers

Answer:

Consumer

Explanation:

A consumer market is simply defined as all the individuals and households who gets or purchase and acquire goods and services.

A Consumer is simply an individual who see, knows or is able to identifies a need or desire, thereafter buy the product and then disposes of the product during the three stages of the consumption process.

If Malaland exports $51 billion in goods to Bursia, and Malaland imports $34 billion of goods from Bursia , what is the goods trade balance for Malaland

Answers

Answer:

$17 billion

Explanation:

Calculation for what is the goods trade balance for Malaland

Using this formula

Goods trade balance=Exports goods- Imports goods

Let plug in the formula

Goods trade balance=$51 billion- $34 billion

Goods trade balance=$17 billion

Therefore the goods trade balance for Malaland will be $17 billion

Uncollectible accounts are determined by the​ percent-of-sales method to be ​% of credit sales. How much is​ uncollectible-account expense for ​?

Answers

Answer:

$1,160

Explanation:

Hie, I have attached the full question as an image below.

The firm usually makes provision for certain amounts so as not to overstate their profits. This expected as it is prudent than reporting profits that might never occur. Provisions of Uncollectible accounts are examples of such amounts.

An increase in Uncollectible amount compared to the opening balance is treated as an Expense in the Income Statement whilst a decrease is treated as an Income.

For this question, we are told that Uncollectible accounts are determined by the​ percent-of-sales method to be ​4% of credit sales. Thus calculation of the 2012 uncollectible-account expense is as follows :

Credit Sales - 2012 = $44,000

Beginning Balance in allowances = $600

Therefore,

Uncollectable Amount (2012) = Credit Sales x percent-of-sales

                                                 = $44,000 x 4%

                                                 = $1,760

The Uncollectable amount has increased by $1,160 ($1,760 - $600)

Conclusion :

The collectible-account expense for 2012 is $1,160

 

The Lion Incorporated is currently going bankrupt and is a subsidiary of the Dorothy Ltd. The CFO of the Dorothy Ltd is preparing consolidating statements for a listing of the company on the French stock exchange. She does not include in consolidation the Lion Company, saying Lion does not have and is not in the process of having debt or equity instruments that are publically traded. The CFO is:

Answers

Answer: In compliance with the IFRS

Explanation:

Based on the information given in the question, we can say that the CFO is in compliance with the IFRS. IFRS Standards are typically used by accountable entities. We should note that even though IFRS Standards are normally permitted, it is not required for every accountable entities.

In the scenario in the question, we are informed that the CFO does not include in consolidation the Lion Company, saying Lion does not have and is not in the process of having debt or equity instruments that are publically traded. In this case, the CFO is in compliance with the IFRS.

Ridge Company issues $10,000,000 10-year, 9% bonds on 3/1/17 at 97 plus accrued interest. The bonds are dated January 1, 2010, and pay interest on June 30 and December 31; original issue date was 1/1/17. What is the total cash received on 3/1/17

Answers

Answer:

$9,850,000

Explanation:

Calculation for What is the total cash received on 3/1/17

Total cash received on 3/1/17=$10,000,000 × .97) + ([9%*$10,000,000) × 2/12]

Total cash received on 3/1/17=$10,000,000 × .97) + ($900,000 × 2/12)

Total cash received on 3/1/17=$9,700,000+$150,000

Total cash received on 3/1/17 = $9,850,000

Therefore the total cash received on 3/1/17 is $9,850,000

What are some of the advantages and disadvantages of a) individuals as innovators, b) firms as innovators, c) universities as innovators, d) government institutions as innovators, e) nonprofit organizations as innovators

Answers

Answer:

a. Individuals as innovators

Advantages

1. Individuals have no limits (no hard rules) as to whom they can sell their innovation to.

2. An individual can be able lead a successful career with their innovation is any company

Disadvantages

1. Capital is a major limit for most individuals who may not be able to market their innovations.

2. Lack of Knowledge in Patenting innovation ideas have led to most individuals losing their innovation to others.

b. firms as innovators

Advantages

1. Successful innovation can help a firm improve its processes and increase its revenues.

2. Innovation in a unique product can often lead a firm to monopoly as the product becomes a necessity

Disadvantages

1. Firms have more rivalry such that others can copy the innovation or produce another close substitute which can render all efforts to a loss.

2.It takes so much time for the innovation to be approved in a firm as some structures of authority have to be followed and also depending on the culture of the firm towards innovation.

c. universities as innovators

Advantages

1. Universities are better able to raise capital through the Research Funds granted to them by stakeholders.

2. Innovation increases a University`s reputation and improves it rankings.

Disadvantages

1. High dependence on government agencies for funding by Universities means Innovation successes are easily affected by the fiscus.

2. Universities are not effective at marketing Innovations on their own.

d. government institutions as innovators

Advantages

1. The government can increase revenue by improving processes and cutting costs.

2. Innovation can improve transparency and help improve governance and administration.

Disadvantages

1. Adoption of innovation is usually slow as it has to pass so much bureaucracy.

2. Most personnel prefer working in private institutions hence the personnel to drive innovation in governments may be unavailable or inadequate

e. nonprofit organizations as innovators

Advantages

1. There is so much option for funding of innovations ranging from Individuals, Companies and Government

2. Most innovations are driven by Human Need hence their increased success.

Disadvantages

1. The innovation may not be able to generate the revenue to cover the costs.

2. The organizations are usually lacking personal's to drive innovations as people prefer to be paid more for their work.

Explanation:

Innovation is defined as the creation, development and implementation of a new product, process or service. The aim of  innovation is to  improve efficiency, effectiveness or competitive advantage. Innovation presents advantages and disadvantages to various players as listed above.

What nominal return was received by an investor when inflation averaged 3.46% and the real rate of return was 2.5%

Answers

Answer:

Nominal rate of return= 0.0596 = 5.96%

Explanation:

Giving the following information:

Inflation averaged 3.46%

The real rate of return was 2.5%

To calculate the nominal rate of return, we need to use the following formula:

Real rate of return= nominal rate of return - inflation rate

Nominal rate of return= real rate of retunr + infaltion rate

Nominal rate of return= 0.0346 + 0.025

Nominal rate of return= 0.0596 = 5.96%

(True) or (False)? Accumulated depreciation is recorded as a contra expense account on the income statement, and the depreciation expense is recorded as an asset on the balance sheet.

Answers

Answer:

false

Explanation:

Depreciation is the reduction in the value of an asset. It is recorded as an expense on the income statement.

Accumulated depreciation is the sum of depreciation over a time period. It is recorded as a contra asset on the balance sheet

n the industry and the community, Tri-State is known for its low-cost business strategy, but also as a company that is generous to its employees. After 100 years of successful operation, it now finds itself with a respected brand and a market share leader. Tri-State also prides itself on helping with school lunch programs in disadvantaged school districts. In the past, it has helped organizations like the Salvation Army and Red Cross when natural disasters occur across the United States, but this is on an as-needed basis. How would you classify Tri-State's social actions

Answers

Answer:

Tri-State's social actions would be classified as:

Corporate Social Responsibility.

Explanation:

Corporate Social Responsibility involves alignment or integration of the social and environmental concerns with the entity's operations and economic responsibilities for sustainable organizational development.  It enables a business entity to remain relevant and accountable.  Companies like Tri-State are increasingly trying to make a difference in their environments while building positive brand image by giving back to their community, taking active part in philanthrope, and providing positive social values.

Compare the development of clustered rural settlements with dispersed rural settlements. In your paragraph, consider each of the following:

explanation or description of each advantages or purpose of such a community one specific example of its use.

Answers

Answer:

Dispersed settlement are simplex and uncommon while the compacted are common and densely populated.

Explanation:

The dispersed rural settlements are called scattered settlements, they are spread out in the entire area. The clustered settlements are nucleated or compact in nature and are closely build up houses.  The dispersed settlements are found along the tree lines, rivers, ponds and are sparsely populated. They are small groups of buildings ad are popular in the mid-west US. The clustered settlements are closely knitted and represent geometric patterns such as rectangular, radial, and linear. They are densely populated.

An investment is expected to yield $300 in three years, $500 in five years, and $300 in seven years. What is the present value of this investment if our opportunity rate is 5%

Answers

Answer:

Total PV= $864.11

Explanation:

Giving the following information:

Cash flows:

Cf3= $300

Cf5= $500

Cf7= $300

Opportunity rate= 5%

To calculate the total present value, we need to use the following formula on each cash flow:

PV= FV/(1+i)^n

PV1= 300/(1.05^3)= 259.15

PV2= 500/(1.05^5)= 391.76

PV3= 300/(1.05^7)= 213.20

Total PV= $864.11

What is the standard deviation of returns of a portfolio that produced returns of 10%, 15%, 25%, and 30%

Answers

35404550556066707780

Other Questions
How is the United States rated on the scale of economic freedom?A. RepressedB. Moderately Free C. Mostly FreeD.Free 6y > 12 when y=2SolutionNot a solution A wooden plank rests in equilibrium on two rocks on opposite sides of a narrowstream. Three forces P, Q and Ract on the plank.PRAplankQHow are the sizes of the forces related?AP+ Q = RBP+R =CP= Q = RDP= Q +R HELP ASAP PLS. Analyze the reflectional symmetry of the image. How many lines of symmetry does this image have?0124 can you help me with this The most important source of oligopoly is: economies of scale. government-created barriers. technological superiority. all of the above. which number expression represents 1/2 the sum of 7 and 5 please help What was apartheid?A the rule and authority of British leaders in the South African governmentB) the lack of religious freedom in South Africathe segregation of black South Africans in white South African society Evaluate (754 mm)/(41 s) to three significant figures and express answer in SI units using an appropriate prefix. If Josh can read 18 pages in 40 minutes, how long will it take him to read 90 pages? In your opinion, how did music influence the life of the Medieval and Renaissancecomposers? Diagram shows the composite solid formed by a cuboid and a right prism. Trapezium LMNP is the uniform cross section of the prism. It is given the volume of the composite solid is 444cm. Calculate the length, in cm of MN What is 28% of 76. Somebody help please!!! always, sometimes, or never.in an isosceles right triangle, the ratio of the measure of the angles is 1:1:2 helpp this is characteristics of quadratic functions Simplify this expression2 x x x 3 x y(The 2nd x is algebra) We believe that our kids deserve good day care and public schools. We believe our kids deserve public schools where students can learn and teachers can teach. And we want to believe that our parents will have a good retirementand that we will too. 1988 Democratic National Convention Keynote Address, Ann Richards Use the drop-down menu to answer the question. What type of rhetorical device does the speaker use in this passage? need help asapKatherine was out at a restaurant for dinner when the bill came. Her dinner came to $22. After adding in a tip, before tax, she paid $28.38. Find the percent tip. 10. (a) Describe how the structure of an alloy is different to a pure metalYou can type directly into this text box below: (2)10. (b) Suggest why coins are not made of pure copper. Do not give cost as a reason.You can type directly into this text box below: (1)Grade 5+ 15 marksTotal 27 marksUm, yea, please help lol