Consider the rate of return of stocks ABC and XYZ. Year rABC rXYZ
1 22 6
2 10 10
3 19 17
4 3 0
5 1 -8
a. Calculate the arithmetic average return on these stocks over the sample period.
b. Which stock has greater dispersion around the mean?
c. Calculate the geometric average returns of each stock.
d-1. If you were equally likely to earn a return of 22%, 10%, 19%, 3%, or 1%, in each year (these are the five annual returns for stock ABC), what would be your expected rate of return?
d-2. If you were equally likely to earn a return of 36%, 10%, 17%, 0%, or -8%, in each year (these are the five annual returns for stock XYZ), what would be your expected rate of return?

You are president of a large corporation. at a typical monthly meeting, each of your vice presidents gives standard area reports. in the past, these reports have been good, and the vps seem satisfied about their work. based on situational approach to leadership, which leadership style should you exhibit at the next meeting?

Mae jong corp. issues $1,000,000 of 10% bonds payable which may be converted into 10,000 shares of $2 par value ordinary shares. the market rate of interest on similar bonds is 12%. interest is payable annually on december 31, and the bonds were issued for total proceeds of $1,000,000. in accounting for these bonds, mae jong corp. will: (a) first assign a value to the equity component, then determine the liability component. (b) assign no value to the equity component since the conversion privilege is not separable from the bond.(c) first assign a value to the liability component based on the face amount of the bond.(d) use the “with-and-without” method to value the compound instrument.

If a government accumulates chronic budget deficits over time, what's one possible result? a. a collective action problem b. a debt crisis c. regulatory capture d. an unfunded liability