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Author Question: The purpose of maintaining a raw materials inventory is to integrate the purchasing and production ... (Read 38 times)

gbarreiro

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on: Jul 10, 2018
The purpose of maintaining a raw materials inventory is to integrate the purchasing and
  production functions.
 
  Indicate whether the statement is true or false

Question 2

Andre is considering an investment in Bristol Inc. and has gathered the following information. What is the expected standard deviation for a share of the firm's stock?
 
  State of the Economy Probability of the
  State Conditional Expected Return
  Bristol Inc.
  Recession .20 -10
  Steady .50 10
  Boom .30 45
 
  A) 17.48
  B) 122.63
  C) 20.13
  D) 5.14


harveenkau8139

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Reply #1 on: Jul 10, 2018
Answer to Question 1

FALSE

Answer to Question 2

Answer: C
Explanation: C) Standard deviation = (rs - E(r))2  probs1/2
= (-10 - 16.50)2  .20 + (10 - 16.50)2  .50 + (45 - 16.50)2  .301/2
= 20.13.


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