The stock’s expected return, standard deviation, and coefficient of variation. Portfolio: The portfolio refers to a group of financial assets like bonds, stocks, and equivalents of cash. The portfolio is held by investors and financial users. A portfolio is constructed in accordance with the risk tolerance and the objectives of the company. Expected Return on Stock: The expected return on stock refers to the weighted average of expected returns on those assets which are held in the portfolio. Standard Deviation: The standard deviation refers to the stand-alone risk associated with the securities. It measures how much a data is dispersed with its standard value. The Greek letter sigma represents the standard deviation. Coefficient variation: The coefficient of variation is a tool to determine the risk. It determines the risk per unit of return. It is used for measurement when the expected returns are same for two data.

Question

In each of the following cases, certain qualifying education expenses were paid during the tax year for individuals who were the taxpayer, spouse, or dependent. The taxpayer has a tax liability and no other credits. Required: Determine the amount of the American opportunity tax credit (AOTC) and/or the lifetime learning credit that should be taken in each instance. a. A single individual with modified AGI of $32,900 and expenses of $2,440 for a child who is a full-time college freshman. b. A single individual with modified AGI of $44,500 and expenses of $3,080 for a child who is a full-time college junior. c. A couple, married filing jointly, with modified AGI of $79,300 and expenses of $6,100 for a child who is a full-time graduate student. Allowable Credit Type of Credit

Answer 1

Question

Chapter 8, Problem 1P

Summary Introduction

To determine: The stock’s expected return, standard deviation, and coefficient of variation.

Portfolio:

The portfolio refers to a group of financial assets like bonds, stocks, and equivalents of cash. The portfolio is held by investors and financial users. A portfolio is constructed in accordance with the risk tolerance and the objectives of the company.

Expected Return on Stock:

The expected return on stock refers to the weighted average of expected returns on those assets which are held in the portfolio.

Standard Deviation:

The standard deviation refers to the stand-alone risk associated with the securities. It measures how much a data is dispersed with its standard value. The Greek letter sigma represents the standard deviation.

Coefficient variation:

The coefficient of variation is a tool to determine the risk. It determines the risk per unit of return. It is used for measurement when the expected returns are same for two data.

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