Answer:
a. Expected Return = 16.20 %
Standard Deviation = 35.70%
b. Stock A = 22.10%
Stock B = 29.75%
Stock C = 33.15%
T-bills = 15%
Explanation:
a. To calculate the expected return of the portfolio, we simply multiply the Expected return of the stock with the weight of the stock in the portfolio.
Thus, the expected return of the client's portfolio is,
- w1 * r1 + w2 * r2
- 85% * 18% + 15% * 6% = 16.20%
The standard deviation of a portfolio with a risky and risk free asset is equal to the standard deviation of the risky asset multiply by its weightage in the portfolio as the risk free asset like T-bill has zero standard deviation.
b. The investment proportions of the client is equal to his investment in T-bills and risky portfolio. If the risky portfolio investment is considered of the set proportion investment in Stock A, B & C then the 85% investment of the client will be divided in the following proportions,
- Stock A = 85% * 26% = 22.10%
- Stock B = 85% * 35% = 29.75%
- Stock C = 85% * 39% = 33.15%
- T-bills = 15%
- These all add up to make 100%
The components of audit engagement from the question are:
- Cost-benefit
- Circumvention
- designs
- application of controls
- control environment
<h3>The factors that increase inherent risks</h3>
- The integrity of the people that are in managerial positions.
- The experience and the effectiveness of managers.
- Pressures faced by management.
<h3>Factors that affect control risks:</h3>
- Presence of Novel situations
- The use of Outdated controls
- Improper separation of duties
Read more on inherent risks here: brainly.com/question/14538724
Answer:
Answers are: Option b, i.e. Faculty Advisor/ Research mentor
Option d, i.e. IRB Office
Explanation:
IRB, also known as Institutional Review Board, is an ethical review board or committee whose main purpose is to protects the rights of various human subjects who are someway or the other are involved in the research activity. Various additional resources related to IRB approval process can be found with the Faculty Advisor/ Research mentor and also at IRB Office.
Answer:
B) $30,500
Explanation:
Calculation for Kapanga's work in process inventory balance at the end of October
First step is to calculate the Variable Overheads
Variable Overheads = 150% × $5,000
Variable Overheads = $75,000
Now let calculate work in process inventory balance using this formula
Work in process inventory balance = Direct Material + Direct Labor + Variable Overheads
Let plug in the formula
Work in process inventory balance= $ 18,000 + $ 5,000 + $ 7,500 = $ 30,5000
Work in process inventory balance= $30,500
Therefore Kapanga's work in process inventory balance at the end of October will be $30,500
Answer:
What are the businesses that are listed?
Explanation:
