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lana [24]
1 year ago
6

If a portfolio had a return of 11 the risk-free asset return was 6, and the standard deviation of the portfolios excess returns

was 25 the premium would be:________
Business
1 answer:
Sindrei [870]1 year ago
4 0

The premium would be 5%

If a portfolio had a return of 11 the risk-free asset return was 6, and the standard deviation of the portfolios excess returns was 25 the premium would be 5%

Portfolio return = 11%

Risk free rate = 6%

Risk premium = Portfolio return - Risk free rate

                         = 11% - 6% =5%

So, the premium would be 5%

Premium is an amount paid periodically to the insurer by means of the insured for overlaying his chance.

Learn more about premium here- https://economictimes.indiatimes.com/definition/premium

#SPJ4

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3 years ago
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Equipment purchased for $85,000 on January 1, 2010, was sold on July 1, 2013 for $30,000. The company uses the straight-line met
gregori [183]

Answer:

B) $59,500

Explanation:

The equipment was purchased for 85,000 and has no salvage value which means that all 85,000 will be depreciated over it lifetime. It has a life of 5 years and because it uses straight line method it means that it will depreciate equally each year. The equipment is bought on JAN 1 2010 and sold on July 1 2013 which means that the equipment is used for 3.5 years and in order to find its depreciation we will divide 3.5 by 5 and multiply it by 85,000.

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4 0
3 years ago
"Steele Corporation uses a predetermined overhead rate based on machine-hours to apply manufacturing overhead to jobs. Steele Co
adell [148]

Answer:

B) $ 4.25

Explanation:

From the data provided in the question, we need to classify the items into manufacturing costs.

Salary of production supervisor                                        $ 40,000

Indirect materials                                                                $   8,000

Rent on factory equipment                                                <u>$  20,000</u>

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Estimated Machine Hours                                                      16,000

Manufacturing Overhead - $ 68,000/ 16,000 hours         $   4.25 per machine hours                                        

The other items provided in the question, sales commission and advertising expenses are selling expenses and are not manufacturing costs.

6 0
3 years ago
In​ ________, goals set by top managers flow down through the organization and become subgoals for each organizational area.
STatiana [176]

Answer:

traditional goal setting

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This is traditional goal setting because the goals flow from the top down. Each organisational area then incorporates them from the top down.

3 0
3 years ago
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il63 [147K]

Answer: True

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The statement that It is possible to insure a pet, a body part, and jewelry is true. It should be noted that a standard homeowners policy consist of the coverage for precious items which includes watches, jewelry etc.

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