Answer:
c. very little unsystematic risk.
Explanation:
The first option is wrong because a diversified portfolio can only lockout unsystematic risk which is due to a particular business sector and not the risk emanating from the whole market which is systematic in nature.
The second option is also wrong because systematic risk cannot be diversified away.
Answer:
0.22 and substitutes goods
Explanation:
The computation of the cross-price elasticity of demand using mid point formula is shown below:
= (change in quantity demanded ÷ average of quantity demanded) ÷ (percentage change in price ÷ average of price)
where,
Change in quantity demanded is
= Q2 - Q1
= 180,603 - 194,108
= -13,505
And, the average of quantity demanded is
= (180,603 + 194,108) ÷ 2
= 187,356
Change in price is
= P2 - P1
= $2.43 - $3.36
= -$0.93
And, the average of price is
= ($2.43 + $3.36) ÷ 2
= 2.895
So, after solving this, the cross - price elasticity is 0.22
Since the cross - price elasticity is positive that reflect the goods are substitutes to each other
Answer:
Predictive models
Explanation:
Predictive modeling uses statistics to predict outcomes. It can be applied to any type of unknown event, regardless of when it occurred.
Answer:
$245,000.00
Explanation:
The amount of sales revenue to be made to achieve target profit is computed as follows:
<em>Sales revenue to achieve target income</em>
<em>= Total fixed cost for the period + target profit/ contribution margin</em>
Contribution margin = (Sales - variable cost) / sales × 100
The figure has been given as 40% in the question
Sales revenue to achieve target profit = (83,000 + 15,000)/0.4
$245,000.00
Watson Company has monthly fixed costs of $83,000 and a 40% contribution margin ratio. If the company has set a target monthly income of $15,000, what dollar amount of sales must be made to produce the target income?
Sales revenue to achieve target profit = $245,000.00
Answer:
<em>Value $ 256,250</em>
<em>rounding against nearest 1,000 dollar: 256,000</em>
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Explanation:
From the gross income we subtract the expenses and vanacy losses.
40,000 gross income - 3,500 vacancy - 16,000 operating expense
20,500 net
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Now, we solve for the present value of a perpetuity given the capitalziation rate of 8%
$ 20,500 / 0.08 = <em>$ 256,250</em>
