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Nana76 [90]
1 year ago
10

Consider the following two investment alternatives. First, a risky portfolio that pays a 12 percent rate of return with a probab

ility of 50% or a 4 percent return with a probability of 50%, and second, a T-bill that pays 3 percent. The risk premium on the risky investment is
Business
1 answer:
zaharov [31]1 year ago
5 0

The risk premium on the risky investment is 5%

<h3>What is investment?</h3>

The dedication of an asset to achieve an increase in value over time is referred to as investment. Investment necessitates the sacrifice of a current asset, such as time, money, or effort. The goal of investing in finance is to generate a return on the invested asset.

Income investing is an investment strategy that focuses on constructing an investment portfolio that is specifically designed to generate regular income. The income investing strategy's sole goal is to generate a consistent stream of income.

The type of investor you are and how you should make investments are determined by your investing personality. Your investing personality is essentially your financial risk profile, which takes into account a variety of factors such as age, financial history, circumstances, and investment objectives.

To know more about investment follow the link:

brainly.com/question/25790997

#SPJ4

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Adjusting entries are made to ensure that?-expenses are recognized in the period in which they are incurred.-revenues are record
Sveta_85 [38]

Answer:

The correct option is all of these choices are correct.

Explanation:

Adjusting Entries: The adjusting entries are those entries which are adjusted at the end of the year.

According to the statements given in the question:

1. Whenever expenses are incurred, it is recognized in the financial statements on that year itself. Moreover, the adjustment entries is also made.

Thus, the given statement is true

2. Under revenue recognition principle, the revenue is recorded when products are supplied and services are rendered to the customers or the performance obligation is completed. Rather than payment is received or not.

Thus, it is a part of adjustment entries

3. If all the correct entries are passed and the income statement and the balance sheet are matched. Or we can say

Assets = Owner's Equity + Liabilities

So, it would be a part of adjusting entries.

When all choices are correct. So, none of the choices are correct option is invalid.

Hence, The correct option is all of these choices are correct.

3 0
3 years ago
A franchise can be among the more expensive business to start because
nataly862011 [7]

............................... b...............................

5 0
3 years ago
Read 2 more answers
Assuming no employees are subject to ceilings for their earnings, Harris Company has the following information for the pay perio
Tanya [424]

Answer:

The correct answer is B. Salaries Payable would be recorded in the amount of 13,542.39.

Explanation:

Given that the company's gross payroll is $19,676, and that a discount of $3,438 must be applied by the Federal Income Tax, a 6% social security rate, a 0.8% federal unemployment rate, a 1.5% rate Medicare and 5.4% state unemployment rate, the following gross discounts must be made to gross payroll to determine wages to be paid after taxes:

3,438 (Federal Income Tax)

19,676 x 0.06 = 1,180.56 (social security rate)

19,676 x 0.008 = 157.408 (federal unemployment rate)

19,676 x 0.015 = 295.14 (Medicare rate)

19,676 x 0.054 = 1,062.5 (state unemployment rate)

Therefore, those discounts should be subtracted from the gross payroll in order to get the Salaries Payable:

19,676 - 3,438 - 1,180.56 - 157.4 - 295.14 - 1,062.5 = 13,542.39.

8 0
3 years ago
The _______ transport of auxin establishes the orientation of growth; the _______ redistribution of auxin causes a growth respon
Novosadov [1.4K]
This is the complete sentence: the polar transport of auxin establishes the orientation of growth, the lateral redistribution of auxin causes a growth response to an enviromental stimulus  that is called morphogenesis.<span />
5 0
3 years ago
Sandblasting equipment acquired at a cost of $40,000 has an estimated residual value of $8,000 and an estimated useful life of e
marta [7]

Answer:

a. $3,000 ; $4,000

b. $7,500 ; $8,125

Explanation:

The computation of the depreciation expense under each method is shown below:

a) Straight-line method:

= (Original cost - residual value) ÷ (useful life)

For year 1

= ($40,000 - $8,000) ÷ (8 years)

= ($32,000) ÷ (4 years)  

= $4,000

In the first year, the nine months depreciation would be charged

= $4,000 × 9 months ÷ 12 months

= $3,000

The 9 months is calculated from April 1 to December 31

In this method, the depreciation is same for all the remaining useful life

So, in year 2, the depreciation expense is $4,000

(b) Double-declining balance method:

First we have to find the depreciation rate which is shown below:

= Percentage ÷ useful life

= 100 ÷ 8

= 12.5%

So, the rate would be double i.e 25%

In year 1, the original cost is $40,000, so the depreciation expense is

= $40,000 × 25% × 9 months ÷ 12 months

= $7,500

The 9 months is calculated from April 1 to December 31

And, in year 2, the depreciation expense would be

= ($40,000 - $7,500) × 25%

= $8,125

5 0
2 years ago
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