The total labor cost of variance is the difference of the two presented costs. The actual cost of production is presented below,
actual cost of production = $198,000
The other cost can be calculated through the equation,
cost of production = (3 hours/labor u)(($8/unit)(8,000) = $192,000
Thus, the total labor cost variance is approximately $6,000.
Answer:
Achived that the breakeven
Answer:
A.) ALPHA
Portfolio A = 8.5%
Portflio B = 13.5%
B.) Sharpe measure
Portfolio A = 0.1519
Portflio B = 0.1479
Explanation:
T- bill rate (Rf) =5%
S&P 500 index ( Rm) = 10%
Portfolio A;
Expected rate of return = 9.1%
Beta (B) = 0.7
Standard deviation (s) = 27%
Portfolio B;
Expected rate of return = 12.1%
Beta (B) = 1.7
Standard deviation = 48%
Required rate of return for both portfolios;
Rf + B × (Rm - Rf)
Portfolio A :
5% + 0.7 ×(10% - 5%) = 5% + 0.7 × (5%)
5% + 3.5% = 8.5%
Portfolio B :
5% + 1.7 ×(10% - 5%) = 5% + 1.7 × (5%)
5% + 8.5% = 13.5%
A) Alpha(A) of Portfolio A and B ;
A = Expected return - Required return
Alpha of portfolio A :
9.1% - 8.5% = 0.6%
Alpha of Portfolio B:
12.1% - 13.5% = - 1.4%
B.) Sharpe measure for portfolio A and B;
Sharpe ratio = (Expected rate of return - Rf) / s
Portfolio A = (9.1% - 5%)/27% = 0.1519
Portfolio B = (12.1% - 5%)/48% = 0.1479
I will choose Portfolio A
<span>Georgia company (a u.s. firm) wants to export to the country of Zumosa and conducts a country risk analysis. all country risk characteristics of Zumosa except a blockage of funds that are remitted by subsidiaries established in Zumosa should be examined for this purpose.</span>
