BUSINESS HIGH SCHOOL

Suppose Maria prefers to buy a bond with a​ 7% expected return and​ 2% standard deviation of its expected​ return, while Jennifer prefers to buy a bond with a​ 4% expected return and​ 1% standard deviation of its expected return.Can you tell if Maria is more or less​ risk-averse than​ Jennifer?A.Maria is less​ risk-averse than Jennifer because Maria is choosing a bond with higher standard deviation.
B.Maria is more​ risk-averse than Jennifer because Maria is choosing a bond with lower volatility of its expected return.
C.There is not enough information to tell. In order to decide whether Maria or Jennifer is more risk​ averse, one will need to compare two bonds with the same expected return and different standard deviations of their expected returns.

Answers

Answer 1
Answer:

Answer: The correct answer is "A.Maria is less​ risk-averse than Jennifer because Maria is choosing a bond with higher standard deviation.".

Explanation: We can measure the risk according to the standard deviation of its expected return, therefore: Maria is less risk averse because she is willing to take more risk in order to obtain a higher return and Jennifer instead prefers to sacrifice performance in order to be less exposed to risk.
Answer 2
Answer:

Final answer:

Maria is less risk-averse than Jennifer because she chooses a bond with a higher expected return and a higher standard deviation, indicating a willingness to accept more risk.

Explanation:

This question involves the concepts of expected return and risk associated with investments, particularly bonds. Risk-aversion is the degree to which an investor prefers lower risk when investing. Maria, who prefers a bond with a 7% expected return and a 2% standard deviation, is displaying characteristics of being less risk-averse than Jennifer, who prefers a bond with a 4% expected return and a 1% standard deviation. This is because a higher standard deviation indicates a higher degree of risk, which Maria is willing to accept for the potential of a higher return.

Therefore, the correct answer is A. Maria is less risk-averse than Jennifer because Maria is choosing a bond with higher standard deviation.

Learn more about Risk-Aversion here:

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If 18,000 units are produced and sold, what is the variable cost per unit produced and sold?2. if 22,000 units are produced and sold, what is the variable cost per unit produced and sold?3. if 18,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold?4. if 22,000 units are produced and sold, what is the total amount of variable cost related to the units produced and sold?5. if 18,000 units are produced, what is the average fixed manufacturing cost per unit produced?6. if 22,000 units are produced, what is the average fixed manufacturing cost per unit produced?7. if 18,000 units are produced, what is the total amount of fixed manufacturing overhead incurred to support this level of production?8. if 22,000 units are produced, what is the total amount of fixed manufacturing overhead incurred to support this level of production?

Answers

Based on the information given, it should be noted that the variable cost per unit will be $14.

Calculation of the Variable Cost.

The variable cost per unit will be:

= Direct materials + Direct labor + Variable manufacturing overhead + Sales commission + Variable administrative expenses

= 7 + 4 + 1.5 + 1 + 0.5

= 14

The total amount of variable cost will be:

= 14 × 18000

= $252000

When 22,000 units are produced and sold, the total amount of variable cost will be:

= 22000 × 14 = $308000

The average fixed cost manufacturing cost per unit will be:

= (20000 × 5)/18000

= 5.56

When 22,000 units are produced, the average fixed manufacturing cost per unit produced will be:

= (20000 × 5)/22000

= 4.55

The total amount of fixed manufacturing overhead incurred will be:

= 20000 × 5

= $100000.

Learn more about variablescost on:

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Answer:

1) total variable cost per unit $14

2) total variable cost per unit $14

3) total variable cost = $14 x 18,000 = $252,000

4) total variable cost = $14 x 22,000 = $308,000

5) average fixed manufacturing cost = $100,000 / 18,000 units = $5.56 per unit

6) average fixed manufacturing cost = $100,000 / 22,000 units = $4.55 per unit

7) total fixed manufacturing overhead = $100,000

8) total fixed manufacturing overhead = $100,000

Explanation:

The company's variable costs for producing 20,000 units

  • direct labor cost is $4 per unit
  • direct material is $7 per unit
  • variable manufacturing overhead $1.50 per unit
  • sales commissions $1 per unit
  • variable administrative expense $0.50 per unit
  • total variable cost per unit = $14

The company's variable costs for producing 20,000 units

  • fixed manufacturing overhead $5 x 20,000 = $100,000
  • fixed selling expense $3.50 x 20,000 = $70,000
  • fixed administrative expense $2.50 x 20,000 = $50,000
  • total fixed costs $220,000

Evaluate the endogenous reasons of business cycle

Answers

In certain schools of economics, business cycles -- the ebb and flow of business and economic health -- are said to be tied to endogenous and exogenous factors. Endogenous factors are considered internal forces and occur entirely within a particular model, while exogenous factors are considered external and occur entirely outside a particular model. Both endogenous and exogenous factors exert influence on the way a business, and the economy as a whole, behaves.

A company selling food product has received a number of complaints about its packaging After researching the complaints, the company switched packaging and sales increased significantly. In marketing research terms, this type of change is best understood as...

Answers

Answer:

Unplanned change

Explanation:

Unplanned change is one of the changes that occur in an organization. The other being planned change. As the name suggests, unplanned change arises from unforeseen events or developments in the business environment. They are the changes necessitated by unexpected occurrences.

The company in reference had not planned on switching its packaging. The change was a result of customer complaints, which can be described as an unforeseen development. Switching packages happened though it was not planned. It is, therefore, an unplanned change.

Bob is training for a triathlon, a timed race that combines swimming, biking, and running.Consider the following sentence: Bob has only 20 hours this week that she can devote to training. Each hour she spends swimming is an hour that she can't spend biking or running.Which basic principle of individual choice do these statements best illustrate?A. Bob can use time most efficiently by spending the same amounts of time on swimming, biking, and running.B. People face trade-offsC. People usually exploit opportunities to make themselves better off.D. Bob has an incentive to spend more time on swimming than on biking or running.

Answers

As bob is training for the triathlon, he has 20 hours to the week and spends those in swimming and thus cant spend in biking and running. As far as the basics of bob is concerned with a trade-off.

  • That is opportunity that is need to be traded with another for the same amount f time. Hence the option B is correct, trade-offs

Learn more about the biking, and running. Consider the following.

]brainly.com/question/20713759.

Answer:

B) People face trade-offs

Explanation:

A trade-off happens when you have to balance two (or three in this case) opposing situations. In economics all resources are scarce, and time is the only resource that everyone shares equally. Bob is facing opportunity costs, i.e. if he chooses to train one activity he cannot train the other.

Bob has to decide how to divide the time he can spend training. If he chooses running, he can´t swim or ride a bike. So he has to balance the time spent on each activity, probably depending on which sport he needs to train the most.

What is the ultimate purpose of the system of checks and balances? a. to restrict power
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Answers

The right answer for the question that is being asked and shown above is that: "c. to distribute responsibility" the ultimate purpose of the system of checks and balances is that c. to distribute responsibility

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Answers

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