Answer:
11.419%
Explanation:
Given that,
Risk-free rate = 5.4
Market risk premium = 5
Portfolio = $1 million = $1,000,000
Amount invested in stock A = $218,000
Beta A = 0.5
Amount invested in stock B = $1,000,000 - $218,000
= $782,000
Remainder invested in stock B that has a beta = 1.4
Portfolio beta:
= [(Amount in A × Beta of A) + (Amount in B × Beta of B)] ÷ Total Amount
= [($218,000 × 0.5) + ($782,000 × 1.4)] ÷ $1,000,000
= ($109,000 + $1,094,800) ÷ $1,000,000
= 1.2038
Required return:
= Risk free rate + (Beta × Market risk premium)
= 5.4% + (1.2038 × 5%)
= 5.4% + 6.019%
= 11.419%
Therefore, the required return on this portfolio is 11.419%
Your adjusted premium based on a current annual premium of $975, increased by a 28% penalty for being at fault in the second accident in six months, is <u>$1,248</u>.
<h3>What is the annual premium?</h3>
The annual premium is the amount that a policyholder pays to the insurance company for a one-year insurance policy.
The annual premium helps to guarantee payment of indemnity when the covered events occur.
This implies that the annual premium is a periodic contribution that helps in the pooling of risks by the insured to help the insurer meet its indemnity obligations.
<h3>Data and Calculations:</h3>
Current annual premium = $975
Increase in annual premium = 28%
Adjusted premium = $1,248 ($975 x 1.28)
Thus, the adjusted premium based on a current annual premium of $975, increased by a 28% penalty for being at fault in the second accident in six months, is <u>$1,248</u>.
Learn more about the annual premium at brainly.com/question/25280754
Answer and Explanation:
1. Interest Revenue $23,000
Sales Revenue $510,000
To Income Summary $533000
(Being closing of revenues accounts are closed)
2. Income Summary $453,000
To Sales returns $20,000
To Sales Discounts $7,000
To Cost Of goods sold $310,000
To Freight out $2,000
To Advertise Exp $15,000
To Interest Exp $19,000
To Salaries & Wages $55,000
To Utility $18,000
To Depreciation $7,000
(Being closing of expenses accounts are closed)
3. Income Summary $80,000
To Retained Earning $80,000
(Being profit is recorded)
4. Retained Earning $30,000
To Dividends $30,000
(Being closing of dividend is recorded)
Answer:
Perfect Competition
Explanation:
Perfect competition is a market characterized by many buyers and sellers that have full information and faces no barrier in entry and exit of the markets. It is the ideal form of market structure where competition is at is greatest possible value. The numerous buyers and sellers are engaged in trade of a homogeneous good in the market. It is also characterized by no long run economic profit and no control over prices.
Answer:
No, because the second method has lower total costs of production.
Explanation:
In a bid to make profits businesses must always compare different processes and choose the cheapest one.
This will eventually reflect in the profitability of the business.
In this instance let's get the cost of each process.
Fabric costs $110 a bolt and labor costs $20 an hour.
The first dress maker can sew 400 garments with 100 bolts of fabric and 1,500 hours of labour
Total cost = (100 bolts * 110) + (1500 * 20)
Total cost = $41,000
For the second dress maker he can sew 400 garments with 150 bolts of fabric and 1,000 hours of identical labour
Total cost = (150 *110) + (1000 * 20)
Total cost = $36,500
As can be seen the second dressmaker has a lower cost of production so he is more efficient than the first dress maker
