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1 year ago

Which investment has the least amount of risk?

Business

1 answer:

wariber [46]1 year ago

3 0

Standard deviation = $300, expected return = $5,000 has the least amout of risk.

If preserving capital is important to you, there are many options to consider when it comes to bonds and bond mutual funds. Low risk means low return, but many people, such as retirees and those who need access to savings for specific short-term needs, want some return to sleep at night. I think it's okay to withhold.

With that in mind, here are the eight leading options in Rector, the low-risk segment of the fixed income market. They don't offer exceptional yields, but that's not the point.

Learn more about risk here:

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The price of a home is $400,000. The mortgage company requires a downpayment of 20% and 1 point at the time of closing for a 30-

ASHA 777 [7]

(a) down payment = 0.20*400000=80000

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3 years ago

Carla Vista Company reports the following operating results for the month of August: sales $385,000 (units 5,500), variable cost

Neko [114]

Answer and Explanation:

The computation is shown below:

Selling Price = Sales ÷ Units Sold

Current Selling Price = $385,000 ÷ 5500

= $70

Now

Expected Selling Price per unit = $70 + ($70× 10%)

= $77

Now

Expected Sales = 5500 × $77

= $423,500

Now

Net Income = Sales - Variable Cost - Fixed Cost

= $423,500 - $250,000 - $94,000

Sales = $385000

Variable cost = $385,000 × 56% = $215,600

Sales $385,000

Less: variable cost -$215,600

Contribution Margin $169,400

Les: fixed cost -$94,000

Net Income $75,400

As we can see that if there is an increase in Selling Price by 10% so it would produce highest Net Income.

3 0

3 years ago

Suppose you borrow at the risk-free rate an amount equal to your initial wealth and invest in a portfolio with an expected retur

Kazeer [188]

Answer: 28%

Explanation:

First, we have to make an assumption that the initial wealth is 100, then the weight of the risk free asset will be:

= Amount invested in risk free / Initial wealth

= -100/100

= -1

The weight of the portfolio will be calculated as:

= 1 - weight of risk free asset

= 1-(-1)

= 1 + 1

= 2

Therefore, the expected return on the resulting portfolio will be:

= 2 × 16 + [(-1) × 4]

= 32 - 4

= 28

5 0

3 years ago

Ashland Corporation estimates its manufacturing overhead costs to be $200,000 and its direct labor costs to be $336,000 for 2020

denpristay [2]

Answer:

Allocated MOH= $99,960

Explanation:

<u>First, we need to calculate the predetermined overhead rate:</u>

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= 200,000 / 336,000

Predetermined manufacturing overhead rate= $0.595 per direct labor dollar

<u>Now, we can allocate overhead to Product 3:</u>

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 0.595*168,000

Allocated MOH= $99,960

7 0

4 years ago

The Production Department of Hruska Corporation has submitted the following forecast of units to be produced by quarter for the

dangina [55]

Answer:

Please refer explanation

Explanation:

1. Total estimated direct labour cost : No. of units produced x number of labour hours required x labour rate per hour

1st Quarter = 12000 units x 0.2 x 12 = $28,800

2nd Quarter = 10000 units x 0.2 x 12 = $24,000

3rd Quarter = 13000 units x 0.2 x 12 = $31,200

4th Quarter = 14000 units x 0.2 x 12 = $33,600

Total Direct Labour Cost for fiscal year = $28800 + $24000 + $31200 + $33600 = $117600

2. Total estimated manufacturing overhead cost : (Number of units x labor hours required x hourly manufacturing overhead rate) + fixed manufacturing overhead

1st Quarter = (12000 units x 0.2 x 1.75) + $86000 = $90,200

2nd Quarter = (10000 units x 0.2 x 1.75) + $86000 = $89,500

3rd Quarter = (13000 units x 0.2 x 1.75) + $86000 = $90,550

4th Quarter = (14000 units x 0.2 x 1.75) + $86000 = $90,900

Total Manufacturing overhead cost for the fiscal year = 90200 + 89500 + 90550 + 90900 = $361150

3. Cash disbursements : Total manufacturing overhead cost - non cash depreciation

1st Quarter = $90,200 - $23000 = $67200

2nd Quarter = $89,500 - $23000 = $66500

3rd Quarter = $90,550 - $23000 = $67550

4th Quarter = $90,900 - $23000 = $67900

Total Cash disbursements for the fiscal year = 67200 + 66500 + 67550 + 67900 = $269150

Total manufacturing overhead costs x (4 x 23000) = $361150 - $92000

3 0

4 years ago