BUSI 420 Homework 7 Performance Evaluation and Pro Forma Financials Assignment solutions answers

BUSI 420 Homework 7 Performance Evaluation and Pro Forma Financials Assignment solutions complete answers

 

Thorpe Mfg., Inc., is currently operating at only 93 percent of fixed asset capacity. Current sales are $300,000. How fast can sales grow before any new fixed assets are needed? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

 

Assets and costs are proportional to sales. Debt and equity are not. A dividend of $1,105 was paid, and Martin wishes to maintain a constant payout ratio. Next year’s sales are projected to be $32,450. What is the external financing needed? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

 

Given the above information for Hetrich, Inc., calculate the operating cash flow, investment cash flow, financing cash flow, and net cash flow. (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to the nearest whole number.)

 

Lemon Co. has net income of $720,000 and 80,000 shares of stock. If the company pays a dividend of $1.64 per share, what are the additions to retained earnings? (Do not round intermediate calculations. Round your answer to the nearest whole number.)

 

Alphonse, Inc., has a return on equity of 18 percent, 42,000 shares of stock outstanding, and a net income of $108,500. What are earnings per share? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

 

Weston Corporation had earnings per share of $2.16, depreciation expense of $370,500, and 150,000 shares outstanding. What was the operating cash flow per share? If the share price was $81, what was the price-cash flow ratio? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

 

Assets and costs are proportional to sales. Debt and equity are not. No dividends are paid. Next year’s sales are projected to be $7,788. What is the external financing needed? (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to the nearest whole number.)

 

During the year, Smashville, Inc., had 17,000 shares of stock outstanding and depreciation expense of $13,000. At the end of the year, Smashville stock sold for $47 per share. Calculate the price-book ratio, price-earnings ratio, and price-cash flow ratio. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

 

You have been given the following return information for a mutual fund, the market index, and the risk-free rate. You also know that the return correlation between the fund and the market is .87.

 

a. A stock has an annual return of 16 percent and a standard deviation of 59 percent. What is the smallest expected gain over the next year with a probability of 5 percent? (Do not round intermediate calculations. Round the z-score value to 3 decimal places when calculating your answer. Enter your answer as a percent rounded to 2 decimal places.)

 

a. A stock has an annual return of 11.4 percent and a standard deviation of 46 percent. What is the smallest expected loss over the next year with a probability of 5 percent? (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Round the z-score value to 3 decimal places when calculating your answer. Enter your answer as a percent rounded to 2 decimal places.)

 

The Layton Growth Fund has an alpha of 1.7 percent. You have determined that Layton’s information ratio is .20. What must Layton’s tracking error be relative to its benchmark? (Enter your answer as a percent rounded to 2 decimal places.)

 

Assume that the correlation of returns on Portfolio Y to returns on the market is .80. What percentage of Portfolio Y’s return is driven by the market? (Enter your answer as a decimal not a percentage. Round your answer to 4 decimal places.)

 

Assume that the tracking error of Portfolio X is 8.60 percent. What is the information ratio for Portfolio X? (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 4 decimal places.)

 

You find the monthly standard deviation of a stock is 4.70 percent. What is the annual standard deviation of the stock? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

 

Question 1

 

You find a particular stock has an annual standard deviation of 27 percent. What is the standard deviation for a five-month period? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

 

Question 2

 

You find the monthly standard deviation of a stock is 6.90 percent. What is the annual standard deviation of the stock? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

 

Question 3

 

You are given the following information concerning three portfolios, the market portfolio, and the risk-free asset:

 

What are the Sharpe ratio, Treynor ratio, and Jensen’s alpha for each portfolio? (A negative value should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations. Leave your ratio answers as a decimal rounded to 5 places (e.g., 0.23546). Enter your alpha answers as a percent rounded to 2 decimal places (e.g., 0.22%).)

 

Question 4

 

You are given the following information concerning three portfolios, the market portfolio, and the risk-free asset:

 

Assume that the tracking error of Portfolio X is 9.10 percent. What is the information ratio for Portfolio X? (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 4 decimal places.)

 

Question 5

 

Assume that the correlation of returns on Portfolio Y to returns on the market is 0.84. What is the percentage of Portfolio Y’s return that is driven by the market? (Round your answer to 4 decimal places.)

 

Question 6

 

The Layton Growth Fund has an alpha of 1.5 percent. You have determined that Layton’s information ratio is 0.60. What must Layton’s tracking error be relative to its benchmark? (Enter your answer as a percent rounded to 2 decimal places.)

 

Question 7

 

a. A stock has an annual return of 12.2 percent and a standard deviation of 32 percent. What is the smallest expected loss over the next year with a probability of 1 percent? (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Round the z-score value to 3 decimal places when calculating your answer. Enter your answer as a percent rounded to 2 decimal places.)

 

b. Does this number make sense?

 

Question 8

 

a. A stock has an annual return of 12 percent and a standard deviation of 55 percent. What is the smallest expected gain over the next year with a probability of 2.5 percent? (Do not round intermediate calculations. Round the z-score value to 3 decimal places when calculating your answer. Enter your answer as a percent rounded to 2 decimal places.)

 

b. Does this number make sense?

 

Question 9

 

You have been given the following return information for a mutual fund, the market index, and the risk-free rate. You also know that the return correlation between the fund and the market is 0.97.

 

What are the Sharpe and Treynor ratios for the fund? (Do not round intermediate calculations. Round your answers to 4 decimal places.)

 

Question 10

 

You have been given the following return information for a mutual fund, the market index, and the risk-free rate. You also know that the return correlation between the fund and the market is 0.95.

 

Calculate Jensen’s alpha for the fund, as well as its information ratio. (Do not round intermediate calculations. Enter the alpha as a percent rounded to 2 decimal places. Round the ratio to 4 decimal places.)

 

Question 11

 

Given the following information for Smashville, Inc., construct an income statement for the year:

 

What are retained earnings for the year? (Input all amounts as positive values.)

 

Question 12

 

Given the following information for Smashville, Inc., construct a balance sheet:

 

Question 13

 

You are given the following information for Smashville, Inc.

 

Calculate the gross margin, the operating margin, return on assets, and return on equity. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)

 

Question 14

 

During the year, Smashville, Inc., had 17,000 shares of stock outstanding and depreciation expense of $15,000. Calculate the book value per share, earnings per share, and cash flow per share. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

 

Question 15

 

During the year, Smashville, Inc., had 17,000 shares of stock outstanding and depreciation expense of $12,000. At the end of the year, Smashville stock sold for $46 per share. Calculate the price-book ratio, price-earnings ratio, and the price-cash flow ratio. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

 

Question 16

 

The most recent financial statements for Bradley, Inc., are shown here (assuming no income taxes): 

 

Assets and costs are proportional to sales. Debt and equity are not. No dividends are paid. Next year’s sales are projected to be $9,408. What is the external financing needed? (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to the nearest whole number.) 

 

Question 17

 

Weston Corporation had earnings per share of $1.61, depreciation expense of $673,400, and 260,000 shares outstanding. What was the operating cash flow per share? If the share price was $59, what was the price-cash flow ratio? (Do not round intermediate calculations. Round your answers to 2 decimal places.)   

 

Question 18

 

Alphonse Inc. has a return on equity of 23 percent, 52,000 shares of stock outstanding, and a net income of $126,000. What are earnings per share? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

 

Question 19

 

Lemon Co. has net income of $680,000 and 76,000 shares of stock. If the company pays a dividend of $2.09 per share, what are the additions to retained earnings? (Do not round intermediate calculations. Round your answer to the nearest whole number.)

 

Question 20

 

Given the above information for Hetrich, Inc., calculate the operating cash flow, investment cash flow, financing cash flow, and net cash flow. (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to the nearest whole number.)

 

Question 21

 

The most recent financial statements for Martin, Inc., are shown here: 

 

Assets and costs are proportional to sales. Debt and equity are not. A dividend of $1,120 was paid, and Martin wishes to maintain a constant payout ratio. Next year’s sales are projected to be $34,515. What is the external financing needed? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

 

Question 22

 

Amounts are in thousands of dollars (except number of shares and price per share):

 

Calculate the gross and operating margins for Kiwi Fruit. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) 

 

Question 23

 

Calculate ROA and ROE for Kiwi Fruit. (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)

 

Question 24

 

Calculate the price-book, price-earnings, and price-cash flow ratios for Kiwi Fruit. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

 

Question 25

 

Thorpe Mfg., Inc., is currently operating at only 86 percent of fixed asset capacity. Current sales are $320,000. How fast can sales grow before any new fixed assets are needed? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

 

Problem 19-17 Full-Capacity Sales (LO4, CFA9)
Thorpe Manufacturing, Incorporated, is currently operating at only 86 percent of fixed asset capacity. Current sales are $320,000. How fast can sales grow before any new fixed assets are needed?

Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.

 

Problem 19-14 Calculating Per-Share Measures (LO3, CFA6)
Amounts are in thousands of dollars (except number of shares and price per share):

Kiwi Fruit Company Balance Sheet
Cash and equivalents
$ 490
Operating assets
790
Property, plant, and equipment
3,200
Other assets
180
Total assets
$ 4,660
Current liabilities
$ 1,040
Long-term debt
1,510
Other liabilities
190
Total liabilities
$ 2,740
Paid in capital
$ 410
Retained earnings
1,510
Total equity
$ 1,920
Total liabilities and equity
$ 4,660
 

Kiwi Fruit Company Income Statement
Net sales
$ 8,600
Cost of goods sold
−6,900
Gross profit
$ 1,700
Operating expense
−620
Operating income
$ 1,080
Other income
175
Net interest expense
−200
Pretax income
$ 1,055
Income tax
−265
Net income
$ 790
Earnings per share
$ 2.00
Shares outstanding
395,000
Recent price
$ 44.50
 

Kiwi Fruit Company Cash Flow Statement
Net income
$ 790
Depreciation and amortization
214
Increase in operating assets
−115
Decrease in current liabilities
−130
Operating cash flow
$ 759
Net (purchase) sale of property
$ 215
Increase in other assets
−76
Investing cash flow
$ 139
Net (redemption) issuance of Limited
−$ 202
Dividends paid
−188
Financing cash flow
−$ 390
Net cash increase
508
Calculate the price-book, price-earnings, and price-cash flow ratios for Kiwi Fruit.

Note: Do not round intermediate calculations. Round your answers to 2 decimal places.

 

Problem 19-13 Calculating Profitability Measures (LO3, CFA6)
Amounts are in thousands of dollars (except number of shares and price per share):

Kiwi Fruit Company Balance Sheet
Cash and equivalents
$ 620
Operating assets
800
Property, plant, and equipment
3,200
Other assets
185
Total assets
$ 4,805
Current liabilities
$ 1,040
Long-term debt
1,635
Other liabilities
195
Total liabilities
$ 2,870
Paid in capital
$ 415
Retained earnings
1,520
Total equity
$ 1,935
Total liabilities and equity
$ 4,805
 

Kiwi Fruit Company Income Statement
Net sales
$ 8,100
Cost of goods sold
−6,700
Gross profit
$ 1,400
Operating expense
−400
Operating income
$ 1,000
Other income
180
Net interest expense
−200
Pretax income
$ 980
Income tax
−270
Net income
$ 710
Earnings per share
$ 2.00
Shares outstanding
355,000
Recent price
$ 33.00
 

Kiwi Fruit Company Cash Flow Statement
Net income
$ 710
Depreciation and amortization
212
Increase in operating assets
−120
Decrease in current liabilities
−128
Operating cash flow
$ 674
Net (purchase) sale of property
$ 220
Increase in other assets
−77
Investing cash flow
$ 143
Net (redemption) issuance of Limited
−$ 203
Dividends paid
−190
Financing cash flow
−$ 393
Net cash increase
424
Calculate ROA and ROE for Kiwi Fruit.

Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.

 

Problem 19-12 Calculating Margins (LO3, CFA6)
Amounts are in thousands of dollars (except number of shares and price per share):

Kiwi Fruit Company Balance Sheet
Cash and equivalents
$ 470
Operating assets
730
Property, plant, and equipment
2,900
Other assets
150
Total assets
$ 4,250
Current liabilities
$ 980
Long-term debt
1,280
Other liabilities
160
Total liabilities
$ 2,420
Paid in capital
$ 380
Retained earnings
1,450
Total equity
$ 1,830
Total liabilities and equity
$ 4,250
 

Kiwi Fruit Company Income Statement
Net sales
$ 9,600
Cost of goods sold
−7,600
Gross profit
$ 2,000
Operating expense
−950
Operating income
$ 1,050
Other income
145
Net interest expense
−200
Pretax income
$ 995
Income tax
−235
Net income
$ 760
Earnings per share
$ 2.00
Shares outstanding
380,000
Recent price
$ 42.50
 

Kiwi Fruit Company Cash Flow Statement
Net income
$ 760
Depreciation and amortization
228
Increase in operating assets
−90
Decrease in current liabilities
−118
Operating cash flow
$ 780
Net (purchase) sale of property
$ 185
Increase in other assets
−70
Investing cash flow
$ 115
Net (redemption) issuance of Limited
−$ 174
Dividends paid
−176
Financing cash flow
−$ 350
Net cash increase
545
Calculate the gross and operating margins for Kiwi Fruit.

Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.

 

Problem 19-11 EFN (L04, CFA8)
The most recent financial statements for Martin, Incorporated, are shown here:

Income Statement
Sales
$ 28,000
Costs
−16,800
Taxable income
$ 11,200
Taxes (21%)
−2,352
Net income
$ 8,848
 

Balance Sheet
Assets
$ 114,800
Debt
$ 60,000
 
 
Equity
54,800
Total
$ 114,800
Total
$ 114,800
Assets and costs are proportional to sales. Debt and equity are not. A dividend of $895 was paid, and Martin wishes to maintain a constant payout ratio. Next year’s sales are projected to be $33,040. What is the external financing needed?

Note: Do not round intermediate calculations. Round your answer to 2 decimal places.

 

Problem 19-10 Cash Flow Statement (LO2, CFA5)
Net income:
$ 224
Depreciation:
$ 49
Issuance of new stock:
$ 7
Repurchase of debt:
$ 18
Sale of property:
$ 18
Purchase of equipment:
$ 80
Dividend payments:
$ 5
Interest payments:
$ 29
Given the above information for Hetrich, Incorporated, calculate the operating cash flow, investment cash flow, financing cash flow, and net cash flow.

Note: A negative value should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to the nearest whole number.

 

Problem 19-9 Addition to Retained Earnings (LO2, CFA8)
Lemon Company has net income of $580,000 and 60,000 shares of stock. If the company pays a dividend of $3.15 per share, what are the additions to retained earnings?

Note: Do not round intermediate calculations. Round your answer to the nearest whole number.

 

Problem 19-8 Earnings per Share (LO3, CFA3)
Alphonse, Incorporated, has a return on equity of 12 percent, 64,000 shares of stock outstanding, and a net income of $168,000. What are earnings per share?

Note: Do not round intermediate calculations. Round your answer to 2 decimal places.

 

Problem 19-7 Operating Cash Flow (LO3, CFA5)
Weston Corporation had earnings per share of $1.71, depreciation expense of $636,000, and 240,000 shares outstanding. What was the operating cash flow per share? If the share price was $63, what was the price-cash flow ratio?

Note: Do not round intermediate calculations. Round your answers to 2 decimal places.

 

Problem 19-6 Calculating EFN (LO4, CFA8)
The most recent financial statements for Bradley, Incorporated, are shown here (assuming no income taxes):

Income Statement
Sales
$ 5,800
Costs
−3,480
Net income
$ 2,320
 

Balance Sheet
Assets
$ 18,560
Debt
$ 11,000
 
 
Equity
7,560
Total
$ 18,560
Total
$ 18,560
Assets and costs are proportional to sales. Debt and equity are not. No dividends are paid. Next year’s sales are projected to be $6,554. What is the external financing needed?

Note: A negative value should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to the nearest whole number.

 

Problem 19-5 Price Ratios (LO3, CFA6)
You are given the following information for Smashville, Incorporated.

Cost of goods sold:
$ 259,000
Investment income:
$ 3,100
Net sales:
$ 402,000
Operating expense:
$ 94,000
Interest expense:
$ 7,400
Dividends:
$ 11,000
Tax rate:
21%
 

Current liabilities:
$ 20,000
Cash:
$ 21,000
Long-term debt:
$ 7,000
Other assets:
$ 39,000
Fixed assets:
$ 134,000
Other liabilities:
$ 5,000
Investments:
$ 15,000
Operating assets:
$ 26,000
During the year, Smashville, Incorporated, had 17,000 shares of stock outstanding and depreciation expense of $17,000. At the end of the year, Smashville stock sold for $65 per share. Calculate the price-book ratio, price-earnings ratio, and price-cash flow ratio.

Note: Do not round intermediate calculations. Round your answers to 2 decimal places.

 

Problem 19-4 Per-Share Ratios (LO3, CFA6)
You are given the following information for Smashville, Incorporated.

Cost of goods sold:
$ 174,000
Investment income:
$ 1,400
Net sales:
$ 379,000
Operating expense:
$ 86,000
Interest expense:
$ 7,400
Dividends:
$ 8,000
Tax rate:
21%
 

Current liabilities:
$ 21,000
Cash:
$ 21,000
Long-term debt:
$ 46,000
Other assets:
$ 38,000
Fixed assets:
$ 130,000
Other liabilities:
$ 3,000
Investments:
$ 34,000
Operating assets:
$ 64,000
During the year, Smashville, Incorporated, had 25,000 shares of stock outstanding and depreciation expense of $15,000. Calculate the book value per share, earnings per share, and cash flow per share.

Note: Do not round intermediate calculations. Round your answers to 2 decimal places.

 

Problem 19-3 Performance Ratios (LO3, CFA6)
You are given the following information for Smashville, Incorporated.

Cost of goods sold:
$ 179,000
Investment income:
$ 1,500
Net sales:
$ 364,000
Operating expense:
$ 78,000
Interest expense:
$ 7,400
Dividends:
$ 12,000
Tax rate:
21%
 

Current liabilities:
$ 18,000
Cash:
$ 21,000
Long-term debt:
$ 45,000
Other assets:
$ 39,000
Fixed assets:
$ 160,000
Other liabilities:
$ 4,000
Investments:
$ 35,000
Operating assets:
$ 64,000
Calculate the gross margin, the operating margin, return on assets, and return on equity.

Note: Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.

 

Problem 19-2 Balance Sheets (LO2, CFA4)
Given the following information for Smashville, Incorporated, construct a balance sheet:

Current liabilities:
$ 35,000
Cash:
$ 21,000
Long-term debt:
$ 99,000
Other assets:
$ 36,000
Fixed assets:
$ 163,000
Other liabilities:
$ 18,000
Investments:
$ 40,000
Operating assets:
$ 35,000
 

Problem 19-1 Income Statements (LO2, CFA3)
Given the following information for Smashville, Incorporated, construct an income statement for the year:

Cost of goods sold:
$ 224,000
Investment income:
$ 2,400
Net sales:
$ 489,000
Operating expense:
$ 90,000
Interest expense:
$ 7,400
Dividends:
$ 15,000
Tax rate:
21%
What are retained earnings for the year?

Note: Input all amounts as positive values.

 

Problem 13-20 Jensen's Alpha (LO1, CFA5)
You have been given the following return information for a mutual fund, the market index, and the risk-free rate. You also know that the return correlation between the fund and the market is 0.87.

Year
Fund
Market
Risk-Free
2018
−18.20%
−35.50%
2%
2019
25.10
20.60
5
2020
13.50
12.70
2
2021
6.80
8.40
6
2022
−1.86
−4.20
3
Calculate Jensen’s alpha for the fund, as well as its information ratio.

Note: Do not round intermediate calculations. Enter the alpha as a percent rounded to 2 decimal places. Round the ratio to 4 decimal places.

 

Problem 13-19 Performance Metrics (LO1, CFA5)
You have been given the following return information for a mutual fund, the market index, and the risk-free rate. You also know that the return correlation between the fund and the market is 0.97.

Year
Fund
Market
Risk-Free
2018
−15.8%
−31.5%
3%
2019
25.1
20.2
5
2020
13.1
11.5
2
2021
7.6
8.0
5
2022
−1.62
−3.2
3
What are the Sharpe and Treynor ratios for the fund?

Note: Do not round intermediate calculations. Round your answers to 4 decimal places.

 

Problem 13-14 Value-at-Risk (VaR) Statistic (LO4, CFA2)

A stock has an annual return of 10.2 percent and a standard deviation of 60 percent. What is the smallest expected gain over the next year with a probability of 5 percent?
Note: Do not round intermediate calculations. Round the z-score value to 3 decimal places when calculating your answer. Enter your answer as a percent rounded to 2 decimal places.

Does this number make sense?




Problem 13-13 Value-at-Risk (VaR) Statistic (LO4, CFA2)
a.   A stock has an annual return of 11 percent and a standard deviation of 44 percent. What is the smallest expected loss over the next year with a probability of 1 percent?

Note: A negative value should be indicated by a minus sign. Do not round intermediate calculations. Round the z-score value to 3 decimal places when calculating your answer. Enter your answer as a percent rounded to 2 decimal places.

b.      Does this number make sense?

 

Problem 13-6 Information Ratio (LO1, CFA5)
The Layton Growth Fund has an average return that is 2.1 percent higher than the market benchmark. You have determined that Layton’s information ratio is 0.50. What must Layton’s tracking error be relative to its benchmark?

Note: Enter your answer as a percent rounded to 2 decimal places.

 

Problem 13-3 Performance Evaluation (LO1, CFA5)

You are given the following information concerning three portfolios, the market portfolio, and the risk-free asset:

Portfolio
Rp
σp
βp
X
15.5%
37%
1.65
Y
14.5
32
1.30
Z
8.2
22
0.80
Market
10.8
27
1.00
Risk-free
6.4
0
0
What are the Sharpe ratio, Treynor ratio, and Jensen’s alpha for each portfolio?

Note: A negative value should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations. Round your ratio answers to 5 decimal places. Enter your alpha answers as a percent rounded to 2 decimal places.

 

Problem 13-2 Standard Deviation (LO4, CFA2)
You find the monthly standard deviation of a stock is 9.40 percent. What is the annual standard deviation of the stock?

Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.

 

Problem 13-1 Standard Deviation (LO4, CFA2)

You find a particular stock has an annual standard deviation of 34 percent. What is the standard deviation for a three-month period?

Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.