« previous next »

Author Question: The purpose of carrying inventory is to A) have collateral for loans. B) make sales more ... (Read 96 times)

LaDunn

  • Hero Member
  • *****
  • Posts: 526
on: Jul 10, 2018
The purpose of carrying inventory is to
 
  A) have collateral for loans.
  B) make sales more independent of the production process.
  C) make different production processes more dependent on sales.
  D) improve the current ratio.

Question 2

Richard has two investment opportunities. He can invest in The Sunglasses Company or The Umbrella Company.
 
  If he diversifies his investment by putting 50 of his money into each company, what is the expected return and standard deviation of his portfolio?
 
  State of the Economy Probability of the State Expected Return Sunglasses Company Expected Return
  Umbrella Company
  Sunny .50 25 0
  Rainy .50 0 25
 
  A) The expected return for the portfolio is 12.50 and the standard deviation 0.00.
  B) The expected return for the portfolio is 25.00 and the standard deviation 0.00.
  C) The expected return for the portfolio is 12.50 and the standard deviation 12.50.
  D) The expected return for the portfolio is 25.00 and the standard deviation 25.00.


marict

  • Sr. Member
  • ****
  • Posts: 304
Reply #1 on: Jul 10, 2018
Answer to Question 1

B

Answer to Question 2

Answer: A
Explanation: A) The expected return is 12.50 in each state of the world, so the standard deviation is 0.0.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

The first successful kidney transplant was performed in 1954 and occurred in Boston. A kidney from an identical twin was transplanted into his dying brother's body and was not rejected because it did not appear foreign to his body.

Did you know?

When intravenous medications are involved in adverse drug events, their harmful effects may occur more rapidly, and be more severe than errors with oral medications. This is due to the direct administration into the bloodstream.

Did you know?

Illness; diuretics; laxative abuse; hot weather; exercise; sweating; caffeine; alcoholic beverages; starvation diets; inadequate carbohydrate consumption; and diets high in protein, salt, or fiber can cause people to become dehydrated.

Did you know?

To combat osteoporosis, changes in lifestyle and diet are recommended. At-risk patients should include 1,200 to 1,500 mg of calcium daily either via dietary means or with supplements.

Did you know?

Before a vaccine is licensed in the USA, the Food and Drug Administration (FDA) reviews it for safety and effectiveness. The CDC then reviews all studies again, as well as the American Academy of Pediatrics and the American Academy of Family Physicians. Every lot of vaccine is tested before administration to the public, and the FDA regularly inspects vaccine manufacturers' facilities.

An aryballe vase or decanter made for carrying body oils clearly demonstrates that ancient Greeks we An aryballe vase or decanter made for carrying body oils clearly demonstrates that ancient Greeks we
Couples whose marriages have become distant or hostile can make changes in their patterns of ... Couples whose marriages have become distant or hostile can make changes in their patterns of ...
Does everything in nature have a unique purpose (entelechy)? Does everything in nature have a unique purpose (entelechy)?
To help make good electrical contact with the terminals without doing any harm, select the ... To help make good electrical contact with the terminals without doing any harm, select the ...
Patrician Carrying Portrait Busts of Two Ancestors (Known as the Barberini Togatus) Patrician Carrying Portrait Busts of Two Ancestors (Known as the Barberini Togatus)
Magnetic Force on a Current Carrying Conductor Magnetic Force on a Current Carrying Conductor
Video: Structures that affect circulation - arterioles and vasomotor responses

For a complete list of videos, visit our video library