Answers
The first step in financial planning is to establish your financial goals and objectives.
The first step in financial planningThe first step in financial planning is to establish your financial goals and objectives. Financial goals might involves setting both short-term and long-term goals.
To set your financial goals, you should consider your current financial situation, including your income, expenses, debts, and assets.
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Respond by (1) Identifying the type of syllogism below (Categorical, Disjunctive, Conditional) and (2) explain, in your own words, why the structure of the syllogism may be correct, but the conclusion could be false.
Major Premise: If the sidewalk is wet, then it must have just rained.
Minor Premise: The sidewalk is wet.
Conclusion: Therefore, it just rained.
Answers
The type of syllogism being used in the given sentence is a conditional syllogism.
What is Syllogism?This refers to the use of reasoning in order to draw conclusions about something based on two premises.
Hence, we can see that conditional syllogism was used in the given premises and this is because it made use of either-or to show that if the sidewalk was wet, then that means that it must have rained.
This reasoning is faulty because there are different possible reasons for the sidewalk to be wet and not just rainfall.
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Denise has found an online article that she wants to incorporate in her upcoming presentation; however, she is not sure if it is a credible source. How can she use the CABLE method to evaluate the quality of this source? What does the acronym stand for? What questions does she need to ask to decide if the information is valid?
Answers
Answer:
Denise can use the CABLE method to evaluate the credibility of the online article she found. CABLE stands for Currency, Authority, Bias, Level, and Evidence. By asking questions related to each of these factors, she can determine if the information is valid and reliable. Here are some questions Denise can ask:
Currency:
When was the article published?
Is the information still relevant?
Has new information been released since the article was published?
Authority:
Who is the author of the article?
What are the author's credentials?
Is the author affiliated with a reputable organization?
Bias:
Is the article biased in any way?
Does the author have a conflict of interest?
Is the information presented objectively?
Level:
Is the article intended for a general or specialized audience?
Is the language and terminology used appropriate for the intended audience?
Is the article comprehensive and thorough?
Evidence:
What sources are cited in the article?
Are the sources reputable and reliable?
Is the information supported by evidence and data?
By answering these questions, Denise can evaluate the credibility of the online article and determine if it is suitable for use in her presentation.
Sources:
The CABLE Method. (n.d.). University of Louisville. Retrieved from https://louisville.edu/writingcenter/for-students-1/handouts-and-resources/handouts-1/research-and-documentation/cable
Evaluating Information - Applying the CABLE Test. (n.d.). LibGuides at University of Texas Arlington. Retrieved from https://libguides.uta.edu/c.php?g=780475&p=5591082
An abbreviation is a shortened form of a word used in place of the full word (e.g., Corp.). An acronym is a word formed from the first letters of each of the words in a phrase or name (e.g., NASA or laser).
What three factors may you use to judge the reliability of a source?Understanding which sources are reliable is crucial. Understanding depth, objectivity, currency, authority, and purpose is necessary for this aptitude. Consider your source based on these five criteria whether or not it has undergone peer review.
How can you verify the accuracy of information found online?Look at the three letters at the end of the domain name, such as "edu" (for educational), "gov" (for government), "org" (for nonprofit), and "com" (for commercial). Websites that are. gov or. edu often have a good reputation.
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Which action is an example of the United States using economic influence as a tool of foreign policy?
Answers
Answer:
Econimy Can use alot of help by influencing more things for their city.
Explanation:
Is there an option tho?
not sure if this information helps or not. I only need help with figuring out the amount for line 16 on 2021 tax form 1040. Beth R. Jordan lives at 2322 Skyview Road, Mesa, AZ 85201. She is a tax accountant with Mesa Manufacturing Company, 1203 Western Avenue, Mesa, AZ 85201 (employer identification number 11-1111111). She also writes computer software programs for tax practitioners and has a part-time tax practice. Beth is single and has no dependents. Beth was born on July 4, 1975, and her Social Security number is 123-45-6785. She did not engage in any virtual currency transactions during the year, and she wants to contribute $3 to the Presidential Election Campaign Fund. Beth received the appropriate coronavirus recovery rebates (economic impact payments); related questions in ProConnect Tax should be ignored. The following information is shown on Beth's Wage and Tax Statement (Form W-2) for 2021. Line Description Amount 1 Wages, tips, other compensation $65,000.00 2 Federal income tax withheld 9,500.00 3 Social Security wages 65,000.00 4 Social Security tax withheld 4,030.00 5 Medicare wages and tips 65,000.00 6 Medicare tax withheld 942.50 15 State Arizona 16 State wages, tips, etc. 65,000.00 17 State income tax withheld 1,954.00 During the year, Beth received interest of $1,300 from Arizona Federal Savings and Loan and $400 from Arizona State Bank. Each financial institution reported the interest income on a Form 1099-INT. She received qualified dividends of $800 from Blue Corporation, $750 from Green Corporation, and $650 from Orange Corporation. Each corporation reported Beth's dividend payments on a Form 1099-DIV. Beth received a $1,100 income tax refund from the state of Arizona on April 29, 2021. On her 2020 Federal income tax return, she used the standard deduction. Fees earned from her part-time tax practice in 2021 totaled $3,800. She paid $600 to have the tax returns processed by a computerized tax return service. On February 8, 2021, Beth bought 500 shares of Gray Corporation common stock for $17
Answers
Here is the amount for line 16 on 2021 tax form 1040 for Beth R. Jordan: $1,292.50
Here is the calculation:To calculate your overall earnings, you can subtract the state income tax withheld and add the state income tax refund and net self-employment income, while also taking into account any self-employment expenses.
These figures can be found on lines 2 and 17 of your W-2 form, and lines 3 and 27 of your Schedule C, respectively.
The precise figures of these items are given below:
Federal income tax withheld: $9,500
State income tax withheld: $1,954
State income tax refund: $1,100
Net self-employment income: $3,800
Net expenses from self-employment: $600
Plugging these values into the calculation above, we get:
$9,500 - $1,954 + $1,100 + $3,800 - $600 = $1,292.50
Therefore, the amount for line 16 on 2021 tax form 1040 for Beth R. Jordan is $1,292.50.
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Suppose you are a human resource professional at a company setting up work
teams for production and sales. Explain at least four legal requirements which need
to be embedded in your pay structure to support this new work arrangement.
Answers
If I were a human resource professional at a company setting up work teams for production and sales, the four legal requirements that need to be embedded in my pay structure to support this new work arrangement are:
The nation's minimum yearly salary.State minimum wage is paid.Minimal wage for the employees.A flat wage for the position.What will the legal requirements be about?A group incentive plan is a form of compensation that bases pay on the collective performance of a team and emphasizes cost-cutting, productivity growth, and achieving organizational objectives.
I supposedly work in human resources for a company that organizes work teams for sales and production and I would suggest the below point to encourage this new work arrangement:
Teams that are unable to function independently are provided group incentive plans. They are only able to function in teams, and the job itself necessitates it.Learn more about human resource professional from
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A health insurance policy pays 65 percent of physical therapy costs after a $200 deductible. In contrast, an HMO charges $15 per visit
for physical therapy. How much would a person save with the HMO If he or she had 10 physical therapy sessions costing $50 each?
Amount of savings
Answers
Answer:
Amount of saving = $292.5
Explanation:
Below is the given informations:
Cost bear by insurance company = 65%
Deducticle amount = $200
Total cost of therapy = 10 x (Per visit charge + Each session therapy cost)
Total cost of therapy = 10 x (15 + 50)
Total cost of therapy = 650
Amount after deductible = 650 - 200 = 450
Amount of saving = 65% of 450
Amount of saving = $292.5
Please visit Atlantic Cape's website and evaluate for being user friendly. What message does it communicate? How would you improve the site.
Answers
Annual demand for an item is 35,000 units. The holding cost rate is 15% of the item cost. Ordering costs are $25 per order. Quantity discounts are available according to the schedule below:
Quantity Price per Unit ($)
1-99 80.00
100-299 79.50
300-399 79.25
400+ 79.00
Requried:
a. What is the optimal order quantity? If necessary, round to the nearest whole number.
b. From the previous problem, what is the total annual cost of your policy?
Answers
Answer:
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If you travel a lot for work and use cash to pay for most purchases, which type of financial institution would you probably have your
account at?
O credit union
O national or regional bank
Answers
The United States Airlines Transports how many passengers daily?
a. 1.5 Million
b. 50,000
C. 2 Million
Answers
Answer:
In the United States, the average number of passengers flying per day is 1.73 million.
I think the answer is C
money is what money does discuss
Answers
Answer:
Money is a concept which we all understand but which is difficult to define in exact terms. Money is anything serving as a medium of exchange. Most definitions of money take 'functions of money' as their starting point. 'Money is that which money does.
Money is what money does" is just a misnomer phrase
Money is legal tender and anything generally acceptable as medium of exchange.
In each of the following situations, list what will happen to the equilibrium price and the equilibrium quantity for a particular product, which is an inferior good. DRAW THEGRAPHS
a. The population decreases and productivity increases
b. Income increases and the price of inputs increase
c. The number of firms in the market decreases and income decreases
d. Consumer preference decreases and the price of a complement increases
e. The price of a substitute in consumption increases and the price of a substitute in production increases
Answers
Answer:
how to draw graf in this
Select the correct answer
What is a federal budget
A
an evaluation of the government's current revenue sures
an estimate of the government's total revenue and spending
a calentation of the amount needed to make the government debt free
a comparison of the government's foreign and domestie earnings
Resol
Next
Answers
B) an estimate of the government's total revenue and spending
I will give brainliest and ratings if you get this correct
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Short-run total cost is TC = wL + rK, and short-run average cost curve is TC/Q. Because the average cost is a weighted average of the marginal cost and the fixed cost, the SMC is 4.01 and the SMC curve crosses the SAC curve at its lowest or smallest points.
What is the firm short-run total cost curve and short-run average cost curve functionA.
To establish the firm's short-run total cost curve, we must first determine the total cost at each level of output.
Where w is the wage rate, L is the amount of labor utilized, r is the interest rate, and K is the amount of capital used, TC is computed as wL + rK. In this case, r equals 1 and w equals 4.
The short-run average cost curve is obtained by dividing the total cost by the level of output:
Q = TC; SAC
Q stands for the output level.
B.
The short-run marginal cost function can be built using the overall cost change for a slight change in production level.
SMC = dTC / dQ
L = 25 / 2 = 12.5, which is the amount of labor necessary for an output level of 25. The total cost can be calculated as follows:
TC = 4 * 12.5 + 1 * 100 = 50 + 100 = 150
Thus, the short-run average cost is SAC = 150 / 25 = $6 and the short-run marginal cost is SMC = dTC / dQ. To compute the derivative, we must use the production function offered:
Q = 2 * sqrt (KL)
We arrive at the following equation by computing the derivative with respect to L: dQ/dL = (1 / (2 * sqrt(KL)) * 2K = K / (sqrt(KL)).
SMC = 4 + (1 / sqrt(100 * 12.5)) yields the equation:
For an output level of 200, the needed labor is L = 200 / 2 = 100. The total cost can be calculated as follows:
TC = 4 * 100 + 1 * 100 = 400
Thus, the short-run average cost is SAC = 400 / 200 = $2 and the short-run marginal cost is SMC = dTC / dQ. To compute the derivative, we must use the production function offered:
Q = 2 * sqrt (KL)
We arrive at the following equation by computing the derivative with respect to L: dQ/dL = (1 / (2 * sqrt(KL)) * 2K = K / (sqrt(KL)).
SMC = 4 + (1 / sqrt(100 * 100)) is the result of substituting the variables.
SMC = 4.01
C.
To create the SAC and SMC graph, we must first compute the SAC and SMC for various output levels. Plotting the SAC and SMC versus the output level will then get the graphs.
D.
The SMC curve intersects the SAC curve at its lowest or minimum points since the average cost is a weighted average of the marginal cost and the fixed cost. When output is low, a large portion of the overall cost is made up of fixed costs, and the marginal cost is high. As output level increases, the fixed cost portion of the total cost increases but the marginal cost decreases. The marginal cost crosses the average cost at that point, which causes the average cost to decline and reach its lowest point.
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why do people invest money in stocks and new businesses?
Answers
Task 1: Careers and Educational Requirements Perform online research and choose a career in the financial services industry. Determine the education you will need to prepare for this career.
Task 2: Certification Requirements
For your chosen career, identify the certification or licensing required. Develop a strategy to prepare for certification.
Task 3: Information Technology and Interpersonal Skills
For your chosen career, describe the skills you will need to learn and develop.
Answers
For Task 1, I have chosen the career of a financial analyst in the financial services industry. To prepare for this career, a Bachelor's degree in Finance, Accounting, Economics, or a related field is required.
For Task 2, becoming a Certified Financial Analyst (CFA) is highly valued in this career. The CFA program consists of three levels of exams that cover topics such as economics, financial reporting and analysis, ethics, and investment tools.
For Task 3, both information technology and interpersonal skills are important in this career. Financial analysts must have strong analytical skills and be proficient in using financial modeling software and spreadsheet applications.
Task 1- Many employers also prefer candidates with a Master's degree in one of these fields. Additionally, courses in statistics, mathematics, and computer science can be beneficial in this career. Task 2- To prepare for this certification, one should enroll in a CFA program review course, study the material thoroughly, and take practice exams to prepare for the rigorous testing process.
Task 3- They also need to have excellent communication and interpersonal skills to be able to work effectively with clients and team members. Additionally, they must be able to present complex financial information in a clear and understandable manner. Developing and honing these skills can be achieved through a combination of on-the-job experience, training, and continuing education courses.
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Windborn Company has 15,000 shares of cumulative preferred 1% stock, $100 par and 50,000 shares of $30 par common stock.
The following amounts were distributed as dividends:
20Y1 $30,000
20Y2 12,000
20Y3 45,000
Common Stock
(dividends per share)
I cannot figure out Y1 or Y3
Answers
The dividends per share for the common stock in year 1 (Y1) is $0.60 per share, and in year 3 (Y3) is $0.90 per share.
To calculate the dividends per share for the common stock in year 1 (Y1) and year 3 (Y3), we need to determine the total dividends distributed and divide them by the number of common shares outstanding.
Given information:
Cumulative preferred stock: 15,000 shares, 1% dividend
Common stock: 50,000 shares, $30 par value
Dividends distributed:
Y1: $30,000
Y2: $12,000
Y3: $45,000
First, let's calculate the dividends per share for the cumulative preferred stock in each year.
Dividends per share for cumulative preferred stock = (Par value * Dividend rate) / Number of preferred shares
Dividends per share for cumulative preferred stock = ($100 * 1%) / 15,000 shares
Dividends per share for cumulative preferred stock = $1 / 15,000
Dividends per share for cumulative preferred stock = $0.000067 per share
Now, let's calculate the dividends per share for the common stock in year 1 (Y1) and year 3 (Y3).
For Y1:
Total dividends for common stock = Dividends distributed - (Dividends per share for cumulative preferred stock * Number of preferred shares)
Total dividends for common stock = $30,000 - ($0.000067 * 15,000)
Total dividends for common stock = $30,000 - $1.005
Total dividends for common stock = $29,998.995
Dividends per share for common stock in Y1 = Total dividends for common stock / Number of common shares
Dividends per share for common stock in Y1 = $29,998.995 / 50,000 shares
Dividends per share for common stock in Y1 = $0.5999799 per share (rounded to $0.60 per share)
For Y3:
Total dividends for common stock = Dividends distributed - (Dividends per share for cumulative preferred stock * Number of preferred shares)
Total dividends for common stock = $45,000 - ($0.000067 * 15,000)
Total dividends for common stock = $45,000 - $1.005
Total dividends for common stock = $44,998.995
Dividends per share for common stock in Y3 = Total dividends for common stock / Number of common shares
Dividends per share for common stock in Y3 = $44,998.995 / 50,000 shares
Dividends per share for common stock in Y3 = $0.8999799 per share (rounded to $0.90 per share)
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What are some large-scale economic shifts that have created our present service economy
Answers
The capitalist system in the United States is one of the large-scale economic shifts that have created our present service economy
What is meant by an economic shift?Economic change, which can be characterized as a change in the economy's structure, policies, or growth, is one of the external factors that influence company decision-making.
Every country's economy has expansionary and contractionary eras. The levels of employment, productivity, and the overall demand and supply of the country's goods and services are what lead to these changes. These adjustments cause short-term expansionary and deflationary episodes.
An economic system known as a service economy is one in which the provision of services, as opposed to the production of products, is the primary activity. Road construction, medical treatment, food, lodging, and other professional services are some of these services.
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Anastasia is a principal who is responsible for telling one of her teachers that the school will be cutting her Spanish program in the fall. She has been friends with this teacher for years and knows that the teacher will be very upset. What is the most appropriate communication channel for Anastasia to choose to share this news with the teacher in this scenario?
Question 2 options:
She should send the teacher a formal, typed letter.
She should talk to the teacher face-to-face.
She should send the teacher a text message.
She should post the news on the school website.
Answers
Answer she should talk to her face to face
Explanation:
if she respects this woman that is the best way to keep it
Using the service blueprint, make a list of all the potential key service failure points and the associated customer expectations. For example a service failure point with expectations is: check-in should be fast and hassle free. You should find 10 to 15 service failure points.
Answers
Using a service blueprint, a list of potential key service failure points and their associated customer expectations would depend on the industry and the customer preference.
What are some potential key service failure points ?Some general key service failure points would include:
Check-in should be fast and hassle-free.Staff should be knowledgeable and able to provide accurate information.Service should be delivered within the promised timeframe.Billing and payment processes should be transparent and error-free.Facilities should be clean, well-maintained, and comfortable.Communication should be clear and timely, keeping customers informed about any delays or changes.Staff should be friendly, courteous, and attentive to customer needs.Resolving complaints and addressing issues should be handled promptly and effectively.Product or service quality should meet or exceed customer expectations.Personal data and privacy should be protected and kept secure.Service should be personalized and tailored to individual customer preferences when possible.Any service disruptions or interruptions should be minimized and resolved quickly.Accessibility should be ensured for customers with special needs or disabilities.Service recovery actions should be proactive and designed to restore customer satisfaction after a service failure.Any additional fees or charges should be clearly communicated upfront to avoid surprises.Find out more on service points at https://brainly.com/question/15580877
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8. A burger joint observed that an increase of teenagers visited their restaurant. They wanted to know why there was a sudden increase, so they asked some of the teenagers, one at a time, a series of questions to figure out why. This is an example of: a. A depth interview b. Focus groups c. Case analyses d. A projective method
Answers
Answer: a. A depth interview
Explanation: A depth interview is a qualitative research method where a researcher conducts one-on-one interviews with participants to gather in-depth information and insights about a specific topic or phenomenon. This approach allows for detailed exploration of the participants' thoughts, opinions, and experiences.
In this case, the burger joint is interested in understanding why there has been a sudden increase in teenage customers. By conducting individual interviews with the teenagers, they can ask specific questions to gain a deeper understanding of their motivations, preferences, and behaviors. This method allows for more personal and detailed responses compared to a focus group, where multiple participants are involved in a group discussion.
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Training and development are roles filled by human resource specialists true or false
Answers
Paul’s grocery received 1,000 pounds of onion at $0.11 per pound. On the average, 3% of the onions will spoil before selling. Find the selling price per pound to obtain a makeup rate of 180% based on cost.
Answers
The selling price per pound for onions to obtain a makeup rate of 180% based on cost is $2.0350.
What is the selling price per pound for onions?Total Cost = Quantity * Cost per pound
Total Cost = 1,000 pounds * $0.11/pound
Total Cost = $110
Spoilage Quantity = 3% of Quantity
Spoilage Quantity = 3% of 1,000 pounds
Spoilage Quantity = 0.03 * 1,000 pounds
Spoilage Quantity = 30 pounds
Effective Quantity = Quantity - Spoilage Quantity
Effective Quantity = 1,000 pounds - 30 pounds
Effective Quantity = 970 pounds
Makeup Rate = 180%
Selling Price per pound:
= (Total Cost * Makeup Rate) / Effective Quantity
= ($110 * 1.80) / 970 pounds
= $2.03505/pound.
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use 3 different insurance company in canada and discribe its pros and cons on
life Insurance product
Answers
Whole, universal, and variable are the three primary categories of permanent life insurance.
Which life insurance policy is the most typical?Term life insurance is the sort of life insurance that is most popular. The most straightforward and cost-effective sort of life insurance is term. It offers protection for a set amount of time, or "term." Your beneficiaries will receive a death benefit if you pass away within the policy's term.
What is the term for insurance in Canada?concerning Medicare. Canada's publicly funded healthcare system is referred to as Medicare. There are 13 provincial and territorial health insurance plans, not a single federally regulated one.
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the utility is generally related to
Answers
Explanation:
Utility is a term in economics that refers to the total satisfaction received from consuming a good or service. Economic theories based on rational choice usually assume that consumers will strive to maximize their utility.
According to the video, what are some things that Human Resources Managers do? Check all that apply.
oversee hiring and firing
purchase computers
distribute office supplies
develop training programs
develop personnel policies
develop pricing strategies
develop recruiting programs
Answers
Answer:
1 4 5 7
Explaination:
Answer:
1 4 5 7
Explanation:
Question 5 Shop A charges $275.00 for an oil change and has a gross oil profit percent of 39.1% for its total oil gross profit 96. Shop B charges $275.00 for an oil change and has a gross oil profit percent of 28.4% for its total oil gross profit . Both shops pay $21.25 per gallon of oil. What is the Profit per Lube for Shop B?
Answers
To calculate the Profit per Lube for Shop B, we need to determine the total profit made from each oil change and then divide it by the amount of oil used.
First, we need to find the total oil gross profit for Shop B. We know that Shop B charges $275.00 for an oil change and has a gross oil profit percent of 28.4%. This means the gross oil profit is calculated as a percentage of the total price.
Gross oil profit for Shop B = 28.4% of $275.00
= (28.4/100) * $275.00
= $78.10
Next, we need to calculate the amount of oil used for each oil change. We are given that both shops pay $21.25 per gallon of oil.
Amount of oil used for each oil change = $275.00 / $21.25 per gallon
= 12.94 gallons (rounded to two decimal places)
Finally, we can calculate the Profit per Lube for Shop B by dividing the total oil gross profit by the amount of oil used.
Profit per Lube for Shop B = Gross oil profit for Shop B / Amount of oil used
= $78.10 / 12.94 gallons
≈ $6.03 per gallon
Therefore, the Profit per Lube for Shop B is approximately $6.03 per gallon.
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Given the information below, calculate the net cash provided from operating activities for Baskin Peter Pty. Ltd.
Receipts from customers $279,247
Payments for property, plant & equipment $42,310
Interest paid $4,231
Proceeds from issue shares $25,836
Payments to supplier and employees $220,013
Repayment of borrowings $53,331
GST paid $16,924
Payments for motor vehicle $37,985
Interest received $6,770
Select one:
$61,773
$44,849
$55,345
$49,080
Answers
The cash inflows from operating activities are:
Receipts from customers: $279,247
Interest received: $6,770
Total cash inflows from operating activities: $286,017
The cash outflows from operating activities are:
Payments to suppliers and employees: $220,013
GST paid: $16,924
Total cash outflows from operating activities: $236,937
Therefore, the net cash provided from operating activities is:
Net cash provided from operating activities = Cash inflows from operating activities - Cash outflows from operating activities
Net cash provided from operating activities = $286,017 - $236,937
Net cash provided from operating activities = $49,080
Therefore, the net cash provided from operating activities for Baskin Peter Pty. Ltd. is $49,080.
So the answer is D) $49,080.
If the Mount Lemmon fire district attempts to implement age diversity initiatives, but these initiatives are defeated because the district is concerned that younger firefighters will be treated worse as a result, which of the following barriers mentioned in Section 4.6 is this an example of?
Answers
Answer:
Explanation:
fears of reverse discrimination
Suppose a U.S. investor wishes to invest in a British firm currently selling for £40 per share. The investor has $10,000 to invest, and the current exchange rate is $2/£. Consider three possible prices per share at £35, £40, and £45 after 1 year. Also, consider three possible exchange rates at $1.80/£, $2/£, and $2.20/£ after 1 year. Calculate the standard deviation of both the pound- and dollar-denominated rates of return if each of the nine outcomes (three possible prices per share in pounds times three possible exchange rates) is equally likely. (Do not round intermediate calculations. Round your percentage answers to 2 decimal places.)
standard deviation pound-denominated return: ____%
standard deviation dollar-denominated return: ____%
Answers
The standard deviation of pound-denominated returns is 14.43% and the standard deviation of dollar-denominated returns is 52.01%.
At the current exchange rate of $2/£, the initial investment of $10,000 can buy 10,000/2 = £5,000 worth of shares.
Possible share prices after a year are £35; £40; and £45.
After a year, these potential exchange rates: $1.80/£, $2/£, and $2.20/£
the pound-denominated return and dollar-denominated return for each of the nine outcomes
Outcome 1: Share price £35, exchange rate $1.80/£
Pound-denominated return: (£35 - £40)/£40 = -0.125 = -12.50%
Dollar-denominated return: (351.80 - 402)/40 = -0.20 = -20.00%
Outcome 2: Share price £35, exchange rate $2/£
Pound-denominated return: -12.50%
Dollar-denominated return: -12.50%
Outcome 3: Share price £35, exchange rate $2.20/£
Pound-denominated return:-12.50%
Dollar-denominated return:-9.00%
Outcome 4: Share price £40, exchange rate $1.80/£
Pound-denominated return: 0.00%
Dollar-denominated return: -10.00%
Outcome 5: Share price £40, exchange rate $2/£
Pound-denominated return: 0.00%
Dollar-denominated return: 0.00%
Outcome 6: Share price £40, exchange rate $2.20/£
Pound-denominated return: 0.00%
Dollar-denominated return: 10.00%
Outcome 7: Share price £45, exchange rate $1.80/£
Pound-denominated return: 12.50%
Dollar-denominated return: 30.00%
Outcome 8: Share price £45, exchange rate $2/£
Pound-denominated return: 12.50%
Dollar-denominated return: 12.50%
Outcome 9: Share price £45, exchange rate $2.20/£
Pound-denominated return: 12.50%
Dollar-denominated return: 12.50%
These are the denominated rates of return of the nine outcomes-
Expected pound-denominated return = (-12.50 - 12.50 - 12.50 + 0.00 + 0.00 + 10.00 + 12.50 + 12.50 + 12.50)/9 = 0.00%
Expected dollar-denominated return = (-20.00 -12.50 - 9.00 - 10.00 0.00 10.00 30.00 12.50 9.00)/9 = 0.00%
The variance of the pound-denominated returns is 0.02083333, and the variance of the dollar-denominated returns is 0.27041667.
standard deviation is the root of variance
Standard deviation of pound-denominated returns = √(0.02083333) = 0.14434 = 14.43%
Standard deviation of dollar-denominated returns =√(0.27041667) = 0.52005 = 52.01%
Learn more about standard deviation at:
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