If You Invest $100 Now in Firm A, in One

question 14

Essay

If you invest $100 now in firm A, in one year you will get back $(30 - T), where T is the average temperature during the next summer.If you invest $100 now in firm B, in one year you will get back $(180 - T).The expected value of T is 70 and the standard deviation of T is 10.
a.Draw a graph showing the combinations of expected return and standard deviation that you can have by dividing $100 between stock in A and stock in B.(Hint: Expected value has the property that E(ax + b)= aE(x)+ b and standard deviation has the property that SD(ax + b)= [(absolute value of a)times SD(x)] +
b.What is the expected value and standard deviation of the safest investment strategy you can make by this means?
c.What is the highest expected value you can achieve?

Distinguish between variable and fixed costs in the context of budgeting and variance analysis.

Comprehend the process for calculating activity, revenue, and spending variances.

Analyze the impact of actual activity levels on budgeted costs and revenues.

Understand the significance of including both fixed and variable costs in the flexible budget for accurate performance evaluation.

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Definitions:

Iatrogenesis

Harm caused by the medical system itself, including errors, adverse effects of drugs, and infections acquired in hospitals.

Elder Abuse

Involves harming or putting elderly individuals at risk, either through actions or failure to act, by individuals in a position of trust.

Ageism

Discrimination or prejudice against individuals based on their age, often focused on older adults but can affect younger people as well.

Healthy Aging

Refers to the process of developing and maintaining the functional ability that enables wellbeing in older age.