Compute for the returns, average of returns and Standard Deviation:

Q: Define standard deviation

A: It refers to the variation in the actual observations from the average. Z-Score helps to know how…

Q: ecoral ansactio Ints, Preparing the ance She lai Balan ng the Current Ratio LO2-2, 2-4, 2-5 wing…

A: The ability of a business to pay its short-term financial commitments that are due within a year is…

Q: Thomas Textiles Corporation began November with a budget for 41,000 hours of production in the…

A: Variance represents the result of difference between the actual performance and actual performance…

Q: Begin by selecting the formula to compute the current ratio.   Current ratio formula =…

A: Current ratio: The financial ratio which evaluates the ability of a company to pay off the debt…

Q: The following data set shows the probability distribution for a survey conducted t determine the…

A: A Discreet probability distribution list a finite list of possible value with probability of each…

Q: What is the expected return? What is the variance? What is the standard deviation?

A: State Probability Returns       Boom 0.25 0.15 Normal 0.50 0.08 Slow down 0.15 0.04…

Q: 2. Using your calculations in Part 1, complete the following table: (Do not round intermediate…

A: Inventory valuation is based on the flow of assumptions used by the business entity. It can be…

Q: Which one of the following measures is relevant for assessing exposure to systematic risk?

A: Systematic Risk: It refers to the risk caused by factors that are not in the control of an…

Q: MARISSA Co., the consultant of MARISOL Co. had summarized the following standard cost data extracted…

A: Budgeted hours = normal capacity x budgeted hours  per unit   = 400 units x 5 hours x 12 months   =…

Q: Use the following sample data to calculate the following summary statistics X Y 5 20 7 50 4…

A: S.NO X Y 1 5 20 2 7 50 3 4 10 4 5 20 5 5 30 6 5 20 7 3 10 8 8 50 9 2 10 10 2 5…

Q: Commodore Company uses a standard cost system for its production process and applies overhead based…

A: Cost accounting is a mechanism adopted by entities to find out the true cost of a specific service,…

Q: Prior Year Current Year Prior Year Current Y $100,000 $120,000 Assets: ods Sold 50,000 60,000 Cash…

A: Current Ratio=current assets/current liability  Current Assets=cash+accounts receivable+short term…

Q: The efficient frontier measures risk by using: Group of answer choices B. Correlation A. Risk-free…

A: Efficient frontier refers to the graphical representation of the set of optimal portfolios…

Q: I need the Standard Deviation formula and how to solve it, please

A: Formula for population standard deviation for N data points in a population  is given by:

Q: Expected return and standard deviation. Use the following information to answer the questions: a.…

A: Expected return, variance and standard deviation of each asset is calculated in excel

Q: Thestandard error of the mean is equal to:a.the sample variance divided by the sample size.b.the…

A: Standard error of the mean (SEM) is a measure of the difference between the mean of the sample and…

Q: The variance and its square root, the standard deviation, are the most commonly used measures of…

A: Variance refers to the expectation of squared deviation of a random value from its arithmetic mean.…

Q: Summarize the concept behind monetary-unit sampling (MUS). How does MUS use attribute-sampling…

A: As per ISA 530, "Audit Sampling" can be defined as application of audit procedure to less than 100%…

Q: What is the sample variance and standard deviation for x =23,17, 15, 30, 25.

A: Sample Variance = ΣX2 - n(Avg X)2/(n - 1) Standard Deviation =√sample Variance

Q: b) Calculate the variance and standard deviation.

A: Calculation of expected return Probability Return Expected return A B C=A*B 30% -13% -3.90%…

Q: Consider two assets with expected return R1=0.22,R2=0.55and variance are s1=0.80, s2=0.88 and…

A: Computation of expected return and variance is enumerated as below:

Q: Total risk is measured by _____ and systematic risk is measured by _____. Group of answer choices…

A: Risk and return are fundamental concepts that are closely intertwined. They represent the trade-off…

Q: Experimental outcomes that are based on measurement scales such as time, weight, and distance can be…

A: The correct answer is: (C) Continuous  Continuous random variables are variables that can take on…

Q: The following income statement data presented by VGP Company for the years ended December 31, 2020…

A: Cost Releted : Price and Price Quantity variance

Q: What type of risk is measured by the standard deviation?

A: Standard deviation is the measure of risk that the actual return of an investment will deviate from…

Q: Determine the most accurate statement about variances. Unfavorable variances normally have a credit…

A: Variance: A variance is defined as the difference between a budgeted, planned, or standard cost and…

Q: Which of the following are measurements of risk? range coefficient of variation mean average…

A: The measurements of risk are range, coefficient of variation, standard deviation, and median.…

Q: Show that the lower semi-standard deviation corrected expectation has properties (UT) und (UC)

A: Semi-deviation is an alternative to standard deviation for determining the degree of risk associated…

Q: 1. What percent of the area under the standard normal curve is within one standard deviation of…

A: The objective of the question is to find out the percentage of the area under the standard normal…

Q: percentage

A: Margin of safety = Actual sales volume- Breakeven sales volumeActual sales volume = 34,500.UNIT RATE…

Q: Variance percentage is calculated by dividing the choose your answer... by the choose your answer...

A: Variation refers to the difference i.e. the difference between the current amounts with the budgeted…

Q: Laker Company reported the following January purchases and sales data for its only product. The…

A: Inventory Valuation Methods are methods of valuation of inventory. There are three methods of…

Q: Distinguish between a favorable variance and an unfavorable variance.

A: Favorable Variance: Favorable variance is the variation in the actual and planned output which is…

Q: Actual (500 units) Budgeted (800 units) 800,000 Sales 800,000 Cost of Goods Sold 700,000 640,000…

A: The sales volume variance is the difference between the standard number of units sold and the actual…

Q: A measure, such as the mean, based on sample data is called a Select one: O a. O b. Statistic…

A: Answer is b.statistic A measure , such as the mean, based on sample data is called a sample…

Q: Write down two possible causes for each variance.

A: Variance refers to the differs between the budgeted and actual. It may be favourable and…

Q: he variance of expected returns is equal to the square root of the expected returns. a. True b.…

A: Formula for variance:S2=∑(Xi-X̄) 2/n S2=VarianceXi=Value of one observationX̄=Mean value of all…

Q: Shaw Incorporated began this period with a budget for 1,070 units of predicted production. The…

A: Variance analysis is an evaluation of the discrepancy between actual and planned data. The sum of…

Q: 1 15% 21%

A: Give :XY15212636713-13-261115To calculate the arithmetic average returns for X and Y:For X:Average…

Q: sider the following two sets of data: A = [0.5, -0.6, 0.1, 10] & B = [6, 4, 4.5, 5.5]. Which data…

A: Variance is a measure of risk in finance terms. Variance measures degree of spread for a given data.

Q: The __ __, denoted p hat is given by the formula p hat =. where x is the number of individuals with…

A: Formula: Sample proportion P= XN where,             P is Sample proportion             X is count of…

Q: Define and explain the relationship between simple variance analysis and flexible variance analysis.

A: Simple variances analysis is the study of  deviations of the actual result against the forecasted…

Q: Using the following returns, calculate the arithmetic average returns, the variances, and the…

A: YearReturn XReturn Y19%23%227%44%316%-6%4-17%-20%518%52%

Q: Target Corporation Common Size Income Statement Total revenue Cost of sales Selling, general and…

A: Common size statements are used for the analysis of financial statements. The Common Size Income…

Q: Requirement: Compute for the following variances 1. Fixed Spending Variance 2. Variable Spending…

A: Lets understand the basics. Fixed overhead spending variance indicates the variance between the…

Q: How can we determine the mean and variance of the NPW on the basis of the three NPW estimates?

A: Identify the Rate, project life. Then Identify the cash flows. Compute the Present worth and net…

Risk and return

Before understanding the concept of Risk and Return in Financial Management, understanding the two-concept Risk and return individually is necessary. 

Capital Asset Pricing Model

Capital asset pricing model, also known as CAPM, shows the relationship between the expected return of the investment and the market at risk. This concept is basically used particularly in the case of stocks or shares. It is also used across finance for pricing assets that have higher risk identity and for evaluating the expected returns for the assets given the risk of those assets and also the cost of capital.