UNIVERSITY OF TORONTO Joseph L. Rotman School of Management RSM332 PROBLEM SET #2 SOLUTIONS 1. (a) Expected returns are: E[RA ] = 0.3 × 0.07 + 0.4 × 0.06 + 0.3 × (−0.08) = 0.021 = 2.1%‚ E[RB ] = 0.3 × 0.14 + 0.4 × (−0.04) + 0.3 × 0.08 = 0.05 = 5%. Variances are: 2 σA = 0.3 × (0.07)2 + 0.4 × (0.06)2 + 0.3 × (0.08)2 − (0.021)2 = 0.004389‚ 2 σB = 0.3 × (0.14)2 + 0.4 × (0.04)2 + 0.3 × (0.08)2 − (0.05)2 = 0.00594. Standard deviations are: √ 0.004389 = 6.625%‚ σA = √ 0.00594 =
Premium Interest Variance Standard deviation
SYS702 PROBLEM SOLVING FORMALISMS FOR INFORMATION TECHNOLOGY LECTURE 1: UNDERSTANDING IT WITHIN THE CONTEXT OF SYSTEMS Systems Science Perspective IT and Problem Solving Socio-technical Systems SYS702 Jan-Apr2011 Prepare by Nor Laila Md Noor 2 LEARNING OUTCOMES • Upon completion of this topic‚ students will be able to: • Demonstrate a good understanding of the systems science perspective in contrast with the computer science perspective. • Demonstrate a good understanding
Premium Systems theory Problem solving Systems thinking
ACCOUNTING EXAM 2 STUDY GUIDE Chapter 5 1. Know the following terms: merchandise inventory‚ sales‚ sales returns and allowances‚ sales discounts‚ net sales‚ cost of merchandise sold‚ gross profit‚ operating expenses‚ operating cycle‚ purchase discounts‚ purchase returns and allowances‚ FOB shipping point‚ FOB destination‚ and inventory shrinkage. 2. Be able to prepare a multiple step income statement. 3. Be able to prepare the journal entries for the seller and buyer including
Premium Generally Accepted Accounting Principles Finance Management
When looking around the world today at our global civilization there are many problems that leap to our attention and everyone has a vested interest‚ one such example is food. Science has been tinkering with nature for the past one-hundred years trying to come up with solutions to help fight famine‚ and as a result‚ man made products have created ever more problems. The easiest way in which an individual or individuals can create change is to effect change in their local communities‚ so others can
Premium Organic food Genetically modified organism Pesticide
1. What is the FASB Accounting Standards Codification? The FASB Accounting Standards Codification® is the source of authoritative generally accepted accounting principles (GAAP) recognized by the FASB to be applied to nongovernmental entities. 2. When did the codification become effective? The Codification is effective for interim and annual periods ending after September 15‚ 2009. 3. The FASB had three primary goals in developing the Codification. Identify them. a.
Premium Stock Bond Debt
Violence in High Schools Columbine High School‚ April 20‚ 1999 was the scene of a massacre‚ but in wake of this massacre America experienced an epiphany. Tragically‚ this was not the last we would here about crimes of a similar nature to this one. From 1996 to 2000 an unprecedented slew of violence occurred. There were twelve incidents which received national coverage and left many millions more questioning what happened‚ what went wrong‚ where did this come from. This clearly marked the social
Premium High school
CNPR® Certification Exam 13th and 14th Edition Directions: The timer will be viewable throughout your exam at the bottom left of the page. Once your time is up the exam will submit your answers‚ so please make sure you answer each questions before you run out of time. PLEASE WRITE DOWN THE ANSWERS ON PAPER IN CASE OF SUBMISSION ERROR. Name: Carmen Littleton Email: cml0029@auburn.edu 1. How are drugs sorted into therapeutic groups and classes? 1. first by the conditions that they are used to treat
Premium Pharmacology Pharmaceutical industry Food and Drug Administration
CHAPTER 3 Product Costing and Cost Accumulation in a Batch Production Environment ANSWERS TO REVIEW QUESTIONS 3-1 (a) Use in financial accounting: In financial accounting‚ product costs are needed to determine the value of inventory on the balance sheet and to compute the cost-of-goods-sold expense on the income statement. b) Use in managerial accounting: In managerial accounting‚ product costs are needed for planning‚ for cost control‚ and for decision making. c) Use in cost
Premium Cost Costs Management accounting
CHAPTER 11 DECISION MAKING AND RELEVANT INFORMATION SHORT‐ANSWER QUESTIONS 11‐1 The five steps in the decision process outlined in Exhibit 11‐1 of the text are 1. Identify the problem and uncertainties 2. Obtain information 3. Make predictions about the future 4. Make decisions by choosing among alternatives 5. Implement the decision‚ evaluate performance‚ and learn An example of interdependencies include absenteeism/low employee morale and increased labour costs. 11‐2
Premium Variable cost Costs
Too Much Pressure? Table of Contents Too Much Pressure? Abstract It’s known that being a teenager can be difficult at times. Students have to study every day in order to get good grades into an acceptable college to be successful in life. However‚ the pressure to succeed is becoming a bigger issue for many of these students. It has been shown that teenagers have shown signs of insomnia‚ depression‚ changed eating habits and other stress related symptoms. Whether this pressure is from
Free High school Adolescence Education