A Hedge Fund Returns on Average 26% Per Year with a Standard

question 62

Multiple Choice

A hedge fund returns on average 26% per year with a standard deviation of 12%. Using the empirical rule, approximate the probability the fund returns over 50% next year.

• A) 0.5%
• B) 1%
• C) 2.5%
• D) 5%

Recognize the significance of inventory turnover and its impact on business operations.

Identify guidelines for choosing between FIFO and average cost methods for inventory valuation.

Comprehend the principles and implications of the specific identification method of inventory costing.

Understand the effects of price changes on inventory valuations and company profit margins.

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Definitions:

Yield To Maturity

The total expected return on a bond if held to its maturity date, taking into account both interest payments and capital gains or losses.

Premium

The amount paid for an insurance policy or an additional amount above the nominal or face value of securities.

Par Value

The face value of a bond or stock as stated by the issuer, which does not necessarily reflect its market value.

Yield To Maturity

The expected complete return on a bond when retained through its entire lifespan.