Answer:
C. Less than the variance of each asset, except when the two assets are perfectly positively correlated.
Explanation:
In diversification, there is the less risk in the portfolio that can be determined by the standard deviation. Also the risk can decrease at the time when the asset is lower than the perfect correlation and the same should be place in portfolio. Now if the asset along perfect positive correlation place in the portfolio so the the portfolio risk could be large than the risk of the individuals assets 
 
        
             
        
        
        
Answer:
After tax cost of debt is 5.239%
Explanation:
Given:
Face value = $1,000
Bond price = $895
Coupon payments = 0.035×1,000 = $35 (coupon payment is paid semi-annually so 7% is divided by 2)
Maturity = 20×2 = 40 periods
Using bond price formula:
Bond price = Present value of face value + present value of coupon payments
Use excel function =RATE(nper,pmt,PV,FV) to calculate cost of debt.
substituting the values:
=RATE(40,35,-895,1000)
we get Pre-Tax cost of debt = 4.03% semi- annual
Annual rate is 4.03%×2 = 8.06%
Note: PV is negative as bond price is cash outflow.
After tax cost of debt = 8.06(1 - 0.35)
                                      = 5.239%
 
        
             
        
        
        
Answer:
Empathy is important because it awakens our senses as designers.
 
        
             
        
        
        
Answer:
Entries are given
Explanation:
We will record assets and expenses on the debit as they increase during the year and will record liabilities and capital on the credit side as they increase during the year or vice versa.
                                             DEBIT           CREDIT
A. Kacy Spade, owner, invested cash in the company
Common stock                   14250
Cash                                                           14250
B. The company purchased office supplies 
Office supplies                      413
Cash                                                              413
C.The company purchased office equipment on credit
Office equipment                 7880
Payables                                                      7880
 D.The company received $1,681 in cash
Cash                                       1681
Fees earned                                                 1681
E. The company paid $7,880 cash to settle the payable
Payables                                7880
Cash                                                              7880
F. The company billed a customer $3,021 as fees 
Receivable                              3021
fees earned                                                   3021
G. The company paid $520 cash for the monthly rent.
Rental expense                        520
Cash                                                               520
H. The company collected $1,269 cash as partial payment
Cash                                         1269
Receivables                                                    1269
I. The company paid a $1,000 cash dividend to the owner
Retained earnings                  1000
Cash                                                                 1000
 
        
             
        
        
        
1. a large number of buyers and sellers
2. an identical or a homogeneous product