How does the mathematical measure of standard deviation help risk mangers?.

Answers

Answer 1

The standard deviation is a crucial tool for risk managers in financial investment portfolio management and risk management, and it helps them make informed decisions. The mathematical measure of standard deviation helps risk managers in several ways.

Firstly, it measures the degree of variability or dispersion of a set of data from its average. Secondly, it is an effective tool for risk assessment and management in financial investment portfolio management and risk management. Standard deviation is a statistical measurement that calculates how far an investment's return is from its average return over a specific period. It is calculated by computing the square root of the variance. A low standard deviation implies that the investment's average return is stable and predictable, while a high standard deviation implies that the investment's average return is erratic and unpredictable.

In addition, standard deviation is frequently used to determine investment risk. Investment managers may utilize this metric to compare a portfolio's volatility with that of its benchmark index. If an investment's standard deviation is higher than the benchmark index, it is deemed riskier, whereas if it is lower, it is considered less risky. As a result, a risk manager will use the standard deviation to manage the portfolio's risk. A portfolio's risk can be reduced by lowering its standard deviation.

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Related Questions

Normally, product design costs are product-sustaining costs. however, when customized goods are produced in groups, product design can be a(n)?

Answers

When customized goods are produced in groups, product design can be a form of "group customization" or "mass customization." Group customization refers to the process of designing products that can be customized to a certain extent while still being produced in larger quantities.


In this case, the product design costs are no longer considered product-sustaining costs but rather a part of the overall customization process. The design is adapted to allow for variations within the group of customized goods, ensuring that each product meets the specific needs or preferences of the customer.

For example, let's consider a company that produces customizable phone cases. They have a range of designs that can be customized with different colors, patterns, and texts. By offering these options, they allow customers to personalize their phone cases within certain predefined parameters. The company invests in product design to create a diverse range of designs that can be easily customized in terms of color and pattern. The cost of designing these customizable phone cases is part of the overall customization process, allowing the company to offer a unique product to each customer within a group.

In summary, when customized goods are produced in groups, product design can be a form of group customization or mass customization. The design is adapted to allow for variations within the group, enabling each product to be personalized while still being produced in larger quantities.

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Shock jocks draw listeners by making offensive and outrageous comments on the air.
a. true
b. false

Answers

True

Shock jocks draw listeners by making offensive and outrageous comments on the air. In Mutual v. Ohio, the Supreme Court ruled that movies were an art form and thus had First Amendment protection.

The Production Code started in the 1930s to encourage "lustful kissing" as a way of attracting women to the movies.

Production is the process of combining various tangible and intangible inputs (plans, knowledge) to produce things for consumption (outputs). It is the act of creating output, goods, or services that are of value and contribute to an individual's benefit.

The area of ​​economics that focuses on production is called production theory and is intertwined with consumption (or consumption) theory in economics.

The Four Elements of Production

Production processes and outputs result directly from the productive use of original inputs (or production factors). Land, labor, and capital, known as primary goods or services, are considered the three basic elements of production.

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According to the order of operations in solving equations, which step should come first?

Answers

The order of operations indicates a common set of rules for calculations. According to the order of operations, simplification of inner brackets and parentheses should come first if the equation contains symbolic groupings.

The order of operations is a rule that specifies the correct steps for evaluating mathematical expressions. PEMDAS helps you remember the order: parentheses, exponents, multiplication, and division (from left to right), addition, and subtraction (from left to right). Created by Sal Khan.

Explain to students that you have created a series of steps called an Operational Sequence. When simplifying, first do all bracket expressions, then all exponents, then all multiplications and divisions from left to right, and finally all additions and subtractions from left Run right.

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A deposit made by a company will appear on the bank statement as a.

Answers

The information on the bank statement. Any discrepancies should be investigated and corrected to ensure that the company's financial records are accurate and up-to-date.

A deposit made by a company will appear on the bank statement as a credit transaction. When a company deposits funds into its bank account, it is increasing the balance of funds held at the bank. This increase is reflected on the bank statement as a credit, which is a positive entry in the account ledger. The credit entry will show the date of the deposit, the amount of the deposit, and any relevant information such as the source of the deposit.

It is important for a company to reconcile its bank statement regularly to ensure that all transactions, including deposits, are accurately reflected. This involves comparing the company's records of deposits made.

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A Six Sigma level is calculated by which of the following equations

Answers

This question is incomplete because is lacks the appropriate equations.

Complete Question

A Six Sigma level is calculated by which of the following equations: Select one:

a. (Opportunities - Defects)/Opportunities x 100

b. (Opportunities + Defects)/Opportunities x 100

c. (Defects - Opportunities)/Defects x 100

d. (Defects + Opportunities)/Defects x 100

Answer:

a. (Opportunities - Defects)/Opportunities x 100

Explanation:

A Six Sigma level can be defined as statistical analysis that is used to access the quality of a product or service.

A Six Sigma level is a statistical procedure that involves the collection of data that is used to detect any form of defect in a process, product or service such that the highest or maximum level or quality is obtained from such a process, product or service.

The Six sigma level is determined or calculated by subtracting the total number of defects from the total number of opportunities and then dividing by the total number of opportunities, and finally multiplying the result by 100.

This is can be represented mathematically as:

Option a. (Opportunities - Defects)/Opportunities x 100

Where :

a) Opportunities can be defined as any aspect in a process, product of service where a defect can occur.

b) Defects can be defined as the non conformity of a process, product or service to a quality standard.

A defect can also be defined as when a products falls below the acceptable standard by a customer.

How can a diverse economy like the United States, satisfy the needs of its consumers?

Answers

Answer:

Supply and Demand

Explanation:

2. Making choices is necessary in all economic systems because:
A. there are so many products that we cannot use them all at once
B. the government has so much money that it does not know what to do with it
C. there are so many resources compared to people’s needs that we have to choose which ones not to use
D. there are so many wants compared to scarce resources that we have to decide what to produce

Answers

Explanation:

it is d because we don't have enough resources to sustain forever so we have to figure out how to make them last.

Does anyone want to be saved and acceot the lord jesus christ to come into your heart if you do please say these words out loud.
Lord I admit to you that I am a sinner, but i ask you to please forguve me from all of my sins. Lord god I repent and I turn away from them and never go back. Lord gold fill me with you Holy Spirit. Amen
Now from this day on read your bible and pray and talk to the Lord.
If you have done these things write back Remeber Jesus Loves You And I do To

Answers

Answer:

nah im goood

Explanation:

i dont feel like asking him to "forguve me from all of my sins"

very proud of u for sharing the good news and ik our Lord is too! don’t let those ppl discourage u! have a blessed day

what is the law of demand and supply


Answers

Answer:The law of supply and demand is a theory that explains the interaction between the sellers of a resource and the buyers for that resource. The theory defines what effect the relationship between the availability of a particular product and the desire (or demand) for that product has on its price.

Explanation:

Question 2(Multiple Choice Worth 5 points)
(02.06 MC)
In general, what kind of people earn the most money?
O People with skills that are in high demand and high in supply
O People with skills that are in high demand but low in supply
O People with skills that are in low demand and low in supply
People with skills that are in low demand but high in supply

Answers

Ans: people with skills that are high in demand but low in supply

They earn the most money since skills also follow the law of supply and demand, so consumers are willing to pay more due to low supply

pxg co. has total assets of $10,400,000 and a total asset turnover of 2.54 times. assume the return on assets is 12 percent. what is its profit margin? (do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Answers

PXG Co. has $10,400,000 in total assets and a total asset turnover of 2.54. Suppose the asset return is 12 percent. Its profit margin is 4.72%.

How is the profit margin calculated?

The profit margin of a business is calculated as the profit (sales less all costs) divided by the revenue. By comparing profit to sales, the profit margin ratio illustrates how effectively a business is managing its overall finances. Every time, it is expressed as a percentage.

Profit margin is calculated by multiplying revenue by profit (by 100). A net profit margin and a gross profit margin are the two types of profit margins (smaller).

We need the net income and sales in order to calculate the profit margin. We can calculate sales using total asset turnover, and net income using return on assets. Starting with the whole asset turnover, we discover that sales are:

Total asset turnover = Sales / Total assets

2.54 = Sales / $10,400,000

Sales = $26,416,000

As for the net income:

ROA = Net income / Total assets

0.12 = Net income / $10,400,000

Net income = $1,248,000

Now that we have the profit margin, it is:

Profit margin = Net income / Sales

Profit margin = $1,248,000 / $26,416,000

Profit margin = 0.0472 or 4.72%

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Business Application Identify the common testing procedures for the SDLC implementation at your organiza- tion. Evaluate whether they address the need for security with passive system code scanning. Evaluate the need for penetration testing and whether this has been done in the past. If penetration testing is not part of the SDLC process at your organization, identify a feasible solution for actively testing new software systems for compromise.

Answers

The Software Development Life Cycle (SDLC) is a methodology used for developing information systems and software applications. It encompasses several stages, each with its own testing procedures to ensure application quality. These stages include planning and requirements, design, implementation and development, and maintenance. Evaluating the testing procedures for security is crucial to enhance application security and integrity. This evaluation includes passive system code scanning, penetration testing, and actively testing new software systems for compromise.

1 ) Passive System Code Scanning:

  - Passive code scanning is currently not included in the testing procedures.

  - Incorporating passive code scanning is necessary to analyze software code for vulnerabilities and weaknesses.

  - Passive code scanning enhances security by detecting potential exploits that could be used by hackers.

2 ) Penetration Testing:

  - Penetration testing simulates real-world cyberattacks to assess application security.

  - It is an essential step in the SDLC testing procedures.

  - Penetration testing identifies vulnerabilities and weaknesses.

  - If not previously conducted, it is crucial to include penetration testing in the SDLC to ensure application security.

3 ) Feasible Solution for Actively Testing New Software Systems for Compromise:

  - The recommended approach is to employ a third-party penetration testing service.

  - Third-party penetration testers specialize in testing software applications for vulnerabilities.

  - They conduct comprehensive testing and provide detailed reports on weaknesses and vulnerabilities.

  - Using a third-party service ensures active testing of new software systems to prevent compromise.

By following these testing procedures, organizations can enhance the security and integrity of their software applications. Incorporating passive code scanning, conducting penetration testing, and utilizing third-party services for active testing are vital steps to ensure application security throughout the SDLC.

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MISUNDERSTANDING AT THE OFFICE

Information: A very large management consulting company. There are two participants Ahmad (the manager) and Mustapha (the secretary). There is a big problem here.

Scene: Mustapha had just sat down at his desk. It’s 7:30 am, Sunday morning, when his boss Ahmad rushes into the office.

"Mustapha! Have you finished the report I asked you to do?"

"Report? What report was that, Mr. Ahmad?"

"Yes, a report. I asked you for a short report on the Al-Fulaan factory personnel problem. Don’t you remember it Mustapha? I asked you two weeks ago to do it."

"Oh, yes . . . I think I remember it, Mr. Ahmad."

"THINK you remember it? I need it NOW! I
have a meeting in 30 minutes with the personnel director of Al-Fulaan and some very important managers. You mean to tell me you don’t have it ready for me? Ya Allah!"

"Well, Mr. Ahmad, why didn’t you tell me you needed it THIS morning?"

"I told you two weeks ago I needed it soon, Mustapha. Soon means this morning!"

"How was I supposed to know that soon meant this morning?"

"Listen, Mustapha, any DONKEY could have understood what I meant, doesn’t soon mean to complete an assignment in a couple of days?"

{Mustapha responds and answers very quickly} "When I was working for Mr. Ibrahim in the purchasing department here, he always told me the exact date and time he wanted anything done by me. And he NEVER called me a donkey!"

[After Mustapha says this, Ahmad’s face turns red with anger and he rushes out toward the door. He stops a second before going out to say the following]: "Well, Mustapha, you are not working for Mr. Ibrahim

now, and don’t you forget it."

Try to think about the following questions as you read.

1) What is the main communication barrier here?

2) What do you think are their personalities (Filters of the mind) as communicators?

3) What other factors not mentioned in the case could have contributed to Ahmed getting so upset?

4) How would YOU solve the problem if you were Mustapha? Ahmad?

5) Would it make a difference if Ahmad were younger than Mustapha?

6) Which person is from a High Context Culture and Low Context Culture?

Answers

Answer:

The main communication barrier here is a lack of shared understanding and clear expectations regarding the deadline for the report

Explanation:

The main communication barrier here is a lack of shared understanding and clear expectations regarding the deadline for the report. Ahmad assumed that Mustapha would understand "soon" to mean completing the task on the same morning, while Mustapha interpreted it as a couple of days.

Ahmad's communication style appears to be assertive and direct, expecting others to understand his intentions without explicitly stating them. Mustapha, on the other hand, seems to prefer explicit instructions and clear deadlines, possibly due to his past experiences.

Ahmad's frustration could be attributed to several factors. Firstly, the time pressure of having a meeting with important managers and the personnel director of Al-Fulaan may have heightened his stress levels. Secondly, Ahmad may have experienced previous instances of miscommunication or misunderstandings with Mustapha, leading to a build-up of frustration. Additionally, Ahmad's expectation that Mustapha should have understood his intended deadline without explicit clarification might have added to his irritation.

If I were Mustapha, I would apologize for the misunderstanding and take responsibility for not seeking clarification on the deadline earlier. I would express my willingness to complete the report as quickly as possible and prioritize it to meet Ahmad's urgent needs. As for Ahmad, I would address the issue professionally by providing explicit deadlines and expectations for future tasks while emphasizing the importance of effective communication and mutual understanding.

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The main communication barrier here is a lack of shared understanding and clear expectations regarding the deadline for the report

Ahmad's communication style appears to be assertive and direct, expecting others to understand his intentions without explicitly stating them. Mustapha, on the other hand, seems to prefer explicit instructions and clear deadlines, possibly due to his past experiences.

Ahmad's frustration could be attributed to several factors. Firstly, the time pressure of having a meeting with important managers and the personnel director of Al-Fulaan may have heightened his stress levels. Secondly, Ahmad may have experienced previous instances of miscommunication or misunderstandings with Mustapha, leading to a build-up of frustration. Additionally, Ahmad's expectation that Mustapha should have understood his intended deadline without explicit clarification might have added to his irritation.

If I were Mustapha, I would apologize for the misunderstanding and take responsibility for not seeking clarification on the deadline earlier. I would express my willingness to complete the report as quickly as possible and prioritize it to meet Ahmad's urgent needs. As for Ahmad, I would address the issue professionally by providing explicit deadlines and expectations for future tasks while emphasizing the importance of effective communication and mutual understanding.

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Peggy started work after graduation and started investing.
Why do you think Peggy would have decided to invest?

A. to keep her finances liquid for emergencies
B. to earn compound interest
C. to minimize the risk of losing money
D. to build on her retirement fund
E. to take out a student loan for further education

Answers

Answer:

c

Explanation:

C
Highschool students still don’t know what to do after graduation and may lead to debt after

Which of the following scenarios is an apt example of a future-oriented situational interview? A. Gabi was asked about the most hated aspect of his previous job. B. Rani was asked about the most annoying customer he had ever dealt with. C. Marita was asked whether her religious beliefs had ever influenced her decision- making as a manager. D. Rhazim was asked about the most painful decision he had made as a manager. E. Alisa was asked about the steps she would take to change the work environment in her office.

Answers

The scenarios which is an apt example of a future-oriented situational interview is "Alisa was asked about the steps she would take to change the work environment in her office.: Thus, option E is correct.

Future-focused inquiries concentrate on the ways in which the candidate's prior experiences have shaped their perspectives and possible behaviors in the new work setting.

Situational interview interviews resemble behavioral interview questions in that they pose hypothetical questions about the future, whereas behavioral interview questions focus on the past. Employers can compare the responses of all candidates by placing them in identical fictitious settings. Hence, option E is correct.

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Select the response that corrects the capitalization error in the sentence below. I live in Kentwood, louisiana. a. i b. kentwood c. Louisiana Please select the best answer from the choices provided A B C

Answers

answer: c hope it helps!

Answer:

a) I

Explanation:

The letter I continues to be capitalized because it is the only single letter pronoun. Because the pronouns I and me have different uses, it's easy to distinguish between the two in terms of capitalization rules.

You are creating a budget for your new business. What should you include?
A. All income and expenses.
B. Fixed expenses but not income.
C. Income but not variable expenses.
D. Fixed and variable expenses but not taxes.

Answers

Answer:

A

Explanation:

You should include all income and expenses because you need to know the value of the business and the amount of money you'll have to spend after you have deducted all the expenses and added all the incomes of the business.

Why very few subsistence economies exist today

Answers

Answer:

As previously mentioned,

subsistence markets are

extremely vulnerable to

external influences.

Because of this

vulnerability, these economies are

becoming more scarce around the

world. In the past, for example, large

populations of indigenous peoples lived

throughout North America.

it controls were mandated in public companies by _______________, part of the sarbanes-oxley act.

Answers

IT controls were mandated in the public companies by Section 404, part of  Sarbanes-Oxley act.

What are IT controls?

Information technology controls, often known as IT controls in business and accounting, are particular actions taken by individuals or systems that are intended to guarantee the achievement of organizational goals. They are a part of an organization's internal control. Data availability, confidentiality, and integrity are all important aspects of IT control objectives, as is the general management of the business enterprise's IT function. The Information Technology Governance Council (ITGC) includes controls over the Information Technology (IT) environment, computer operations, access to programs and data, program development, and program updates. IT application controls, often known as "input-processing-output" controls, deal with transaction processing. A well-known framework created by the IT Governance Institute called COBIT (Control Objectives for Information Technology) outlines many ITGC and application control objectives as well as suggested evaluation techniques.

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5 time 8

help me pleeeeeeeeeeeeee

Answers

Answer:

40

Explanation:

five times eight is forty

Suppose a lite insurance company selis a $200,000 1-year lecms iffe insurance policy to a 20yoat-old female for $230. According to the Nabional Vial Statistics Report. 58(21) the probablity that the female survives the year is 0999544 Compute and interpret the expected value of this pollcy to the insurance company The expected valje is s (Round to the nearest cent as needed) Which of the folowing interpretations of the expected valise is correct? Select the correct choice below and fir in the answer box to complete your choice (Round to the nearest cent as needed) A. The insurance company expects to make a maximum profit of 5 on every 20 -year-old fermale it insures for 1 year. B. The insurance company expects to make a profit of : on every 20-year-old female it insures for 1 month C. The irsurance company expecis to make a minimum proft of A on every 20 -year-old female it insures for 1 month D. The insurance compary empecta ta make a profit of 3 on every 20 -yeat-old female it inscires for 1 year

Answers

The expected value of this policy to the insurance company is $229.95. The correct interpretation of the expected value is "The insurance company expects to make a minimum profit of $229.95 on every 20-year-old female it insures for 1 year." Therefore, the correct option is C.

Expected value of this policy to the insurance company can be computed as follows:

Expected Value = (Probability of Survival * Amount Paid by the Policy Holder) - (Probability of Death * Amount Paid to the Policy Holder)

Probability of survival is given as 0.999544 and hence the probability of death is 1 - 0.999544 = 0.000456

Amount paid by the policyholder is given as $230 and amount paid to the policyholder in case of death is $200,000

Expected Value = (0.999544 * $230) - (0.000456 * $200,000)

Expected Value = $229.95

The expected value of this policy to the insurance company is $229.95. The correct interpretation of the expected value is "The insurance company expects to make a minimum profit of $229.95 on every 20-year-old female it insures for 1 year." Therefore, the correct option is C.

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Loan covenants are used for which of the following reasons?
a. To ensure timely repayment of the loan.
b. To increase the interest rate on the loan.
c. To reduce the loan amount.
d. To provide additional collateral for the loan.

Answers

Loan covenants are used for the following reasons: To ensure timely repayment of the loan.

Loan covenants are restrictions in a loan agreement that restrict the borrower's activities. The borrower promises to perform or not to perform particular actions when signing a loan covenant. A loan covenant may be defined in terms of performance, including financial ratios that the borrower must maintain, such as interest coverage and debt-to-equity ratios. Covenants may also regulate how the borrower spends the loan proceeds. For instance, the borrower must invest in its own business, repay debt, or return the money to the lender.

These covenants forbid the borrower from engaging in certain activities. These types of covenants often prohibit the borrower from borrowing more money from another lender, selling a significant part of the business, or acquiring new assets. The purpose of negative covenants is to protect the lender's investment by limiting the borrower's ability to take actions that could jeopardize their ability to repay the loan.Correct Option: a. To ensure timely repayment of the loan.

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1. Workplaces that grow plants, such as farms, nurseries, greenhouses,
gardens, and parks are part of
Plant Systems
Animal Systems
Food Products & Processing Systems
Environmental Service Systems

1. Workplaces that grow plants, such as farms, nurseries, greenhouses,gardens, and parks are part ofPlant

Answers

Answer:

Plant Systems

Explanation:

The plant system entails the science of how plants grow. It is the study of the different types of plants and how they impact our world. Gardens, farms, nurseries, greenhouses, and parks also form part of the plant's system.

Plant Systems specialists help feed the nation by monitoring our plant food quality and safety. They provide information that aids consumers in making sensible nutritional decisions.

What is the relationship between grades and GPAS? (5 points)
O Earning all A's lowers your GPA.
The lower your grades, the higher your GPA.
O The higher your grades, the higher your GPA.
The higher your grades, the lower your GPA.

Answers

Answer : the higher your grades the higher your gpa

How old will someone who graduated high school at 18 be until they get a Masters Degree in civil engineerings ?

Answers

Answer:22 years

Explanation:

Logo and website design are
examples of start-up costs.

Answers

True: Logo and website design are examples of start-up costs. Operating costs include payroll. Building improvements should be calculated into start-up costs.


Match the term with the correct description.

Free Market

Fixed Market
The government increased involvement in the economy.
The government scales back involvement in the economy.

Answers

A free market is one in which the economic system is solely supported by voluntary transaction and the principles of supply and demand, without the involvement of the government.

What other term would you use to describe voluntary?

Deliberate, intentional, or willing are a few words that are frequently used as synonyms for voluntary. Voluntary means freedom or spontaneity in choice or action without any outside force, even if all of these words indicate "done and brought out of one's own will."

Why is it referred to as voluntary?

When something is voluntary, it is being done of one's own free will or volition. Since all the muscles linked to the skeleton are voluntary muscles, voluntary muscles are also frequently referred to as skeletal muscles or striated muscles (because the muscle fibers make them look striated, or stripy).

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You want to have Br. 10,000,000 when you retire in 40 years. You expect to earn 12% compounded semiannually over the entire 40-year period. How much extra money per month must you deposit if you choose to fund using an ordinary annuity technique rather than an annuity due technique?

Answers

Answer:

You must deposit Br. 54.01 extra per month if you choose to fund using an ordinary annuity technique rather than an annuity due technique.

Explanation:

This can be determined using the following 3 steps:

Step 1: Calculation of monthly deposit under ordinary annuity

Theis can be calculated using the formula for calculating the Future Value (FV) of an Ordinary Annuity given as follows:

FV = Do * (((1 + r)^n - 1) / r) ................................. (1)

Where,

FV = Future value of the amount = Br. 10,000,000

Do = Semiannual deposit under ordinary annuity = ?

r = Semiannual interest rate = Annual interest rate / Number of semiannuals in a year = 12% / 2 = 6%, or 0.06

n = number of semiannuals = Number of years * Number of semiannuals in a year = 40 * 2 = 80

Substituting the values into equation (1) and solve for Do, wee have:

10,000,000 = Do * (((1 + 0.06)^80 - 1) / 0.06)

10,000,000 = Do * 1746.59989136857

Do = 10,000,000 / 1746.59989136857

Do = Br. 5,725.40972286698

Mo = Monthly deposit under ordinary annuity = Do / Number of months in a semiannual = Br. 5,725.40972286698 / 6 = Br. 954.23

Step 2: Calculation of monthly deposit under annuity due

Theis can be calculated using the formula for calculating the Future Value (FV) of an Annuity Due given as follows:

FV = Dd * (((1 + r)^n - 1) / r) * (1 + r) ................................. (2)

Where

Dd = Semiannual deposit under annuity due = ?

Other values are as already defined in Step 1 above.

Substituting the values into equation (2) and solve for Dd, wee have:

10,000,000 = Dd * (((1 + 0.06)^80 - 1) / 0.06) * (1 + 0.06)

10,000,000 = Dd * 1,851.39588485068

Dd = 10,000,000 / 1,851.39588485068

Dd = Br. 5,401.329927233

Md = Monthly deposit under annuity due = Dd / Number of months in a semiannual = Br. 5,401.329927233 / 6 = Br. 900.22

Step 3: Calculation of difference between monthly deposit under ordinary annuity and monthly deposit under annuity due

Difference = Mo - Md = Br. 954.23 - Br. 900.22 = Br. 54.01

Therefore, you must deposit Br. 54.01 extra per month if you choose to fund using an ordinary annuity technique rather than an annuity due technique.

people with auto insurance tend to drive less carefully. economists use this as an example of

Answers

People with auto insurance tend to drive less carefully. Economists use this as an example of option c moral hazard.

A moral hazard refers to when a person takes an unnecessary risk to earn a profit before the financial contract ends. Moral hazard also refers to people entering into a contract without good faith or providing wrong information about liabilities. assets and credit capacity.

In moral hazards, usually, one party is at benefits from taking extra advantage of the contract which negatively affects the other of the contract. For instance, a shop owner will have shop insurance from the company but he will be laid back in protecting the shop as he knows the insurance company will pay him back for any damage.

Similarly, people with auto insurance take the unnecessary risk of driving carelessly as the insurance company will pay for the damage to their vehicle.

Options to the question are:

a. information optimization

b. asymmetric selection

c. moral hazard

d. adverse selection.

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3) mire corporation had the following transactions involving investments in trading securities during the year. prior to these transactions, mire had never had any investments in trading securities. prepare the required general journal entries to record these transactions.

Answers

Without the specific transactions provided, I cannot prepare the journal entries for you. However, I can give you an idea of what these journal entries might look like.

If Mire Corporation purchases trading securities during the year, the journal entry to record the purchase would typically involve a debit to Trading Securities and a credit to Cash or Accounts Payable, depending on whether the purchase was made for cash or on credit. The entry would also need to include any transaction costs associated with the purchase, such as brokerage fees or commissions.

If Mire Corporation sells trading securities during the year, the journal entry to record the sale would typically involve a credit to Trading Securities and a debit to Cash or Accounts Receivable, depending on whether the sale was made for cash or on credit. The entry would also need to include any gains or losses on the sale, which would be calculated as the difference between the selling price and the cost of the securities sold.

If Mire Corporation receives dividends or interest income from its trading securities, the journal entry to record the receipt of income would typically involve a debit to Cash and a credit to Dividend or Interest Income.

Overall, the journal entries for investments in trading securities would depend on the specific transactions involved and the accounts affected. It is important to keep accurate records of these transactions to ensure proper reporting of the company's financial results.

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