Based on the scenario analysis on stocks and bonds, we know the following:
- Treasury bonds will provide a higher return in a recession than in a boom.
- The expected return of Bonds is 9.8% and that of stocks is 11.6%.
- The standard deviation of Bonds is 9.24% and that of stock is 11.76%.
<h3>What does the scenario analysis on Bonds and Stocks show?</h3>
In a recession, Bond returns will be 15%. This is much higher than Bond returns in a boom of only 5%.
The expected return on bonds will be:
= ∑(Probability of Scenario x Returns in scenario)
= (0.30 x 15%) + (0.60 x 8%) + (0.10 x 5%)
= 9.8%
The expected return on stocks will be:
= (0.30 x -6%) + (0.60 x 18%) + (0.10 x 26%)
= 11.6%
Using a spreadsheet, you can input the expected returns of the stocks and the bonds to find the standard deviation to be 9.24% and 11.76%, respectively.
Find out more on stock expected returns at brainly.com/question/18724022.
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Answer: 1.41
Explanation:
Given that,
Debt outstanding = $300,000
interest rate = 8% annually
annual sales = $1.5 million
average tax rate = 40%
net profit margin on sales = 4%
interest amount = 300,000 × 0.08
= $24,000
net profit = 4% of 1.5 million
= $6,000
Profit before tax = 
= $10,000
earning before interest and tax = profit before tax + interest
= $10,000 + $24,000
= $34,000
TIE ratio = 
= 
= 1.41
<span>he deposits the money into his
checking account at first main street bank is the answer</span>
Answer:
The net income for 2020 was $90,000
Explanation:
Shmenson Company
Income Statement for the year ended 2020
Sales $470,000
Less Cost of Sales
Beginning Inventories $70,000
Add Net purchases $180,000
Add Freight In $15,000
Less Ending Inventories ($60,000) ($205,000)
Gross Profit $265,000
Less Expenses
Operating expenses ($175,000)
Net Income $90,000
Conclusion
Thus, the net income for 2020 was $90,000.
Answer
A. Currency exchange-Foreign money
B.Commodity Market-Raw, unprocessed goods
C.Stock Market -Shares in corporations
Explanation
Currency exchange market- this is market that deals with the exchange of foreign currencies where the participants members are able to buy and sell currencies. They are normally made of banks, commercial companies, Forex brokers and many other participants.
Commodity Market- This is a type of market where unprocessed materials are sold. Many producers buy the raw materials from these market for further processing.
Stock market- This is the market that deals with trading of shares. Sellers and buyers of stocks which is also called shares gather here. This normally happens that a certain company needs to raise a certain amount of money so the stock buyer will have bought a piece of that company.
