Answer:
Asset U
Explanation:
Reward-to-volatility ratio for Asset Q = Expected return / standard deviation
Reward-to-volatility ratio for Asset Q = 6.5% / 5.5%
Reward-to-volatility ratio for Asset Q = 1.1818
Reward-to-volatility ratio for Asset U = Expected return / standard deviation
Reward-to-volatility ratio for Asset U = 8.8% / 5.5%
Reward-to-volatility ratio for Asset U = 1.6
Reward-to-volatility ratio for Asset B = Expected return / standard deviation
Reward-to-volatility ratio for Asset B = 8.8% / 6.5%
Reward-to-volatility ratio for Asset B = 1.3538
The investor should prefer Asset U because its has the highest reward to volatility ratio among the three options.
Answer:
The correct answer is $479,500.
Explanation:
According to the scenario, the computation of the given data are as follows:
We can calculate the total revenue by using following formula:
Total revenue = Net sale + Dividend revenue + Rent revenue
Where, Net sales = Sales revenue - Sales return
= $445,000 - $34,000 = $411,000
By putting the value in the formula, we get
Total revenue = $411,000 + $10,500 + $58,000
= $479,500
Answer:
a)Jada's basis for depreciation in the property is NIL.
b) Personal property that has no intrinsic value is called 'INTANGIBLE PROPERTY'.
Explanation:
Due to a decline in the property values over the past few years Jada has converted her personal residence to rental property and/or investment property which is a subject dealt within IAS 40 (Investment property).
According to IAS 40 an investment property is land or building held to earn rentals or for capital appreciation or both rather than use in the entity. IAS 40 requires to initially measure investment property at cost and subsequently may either measure at cost or fair value model. Fair value is normally established by prevailing market prices.
IAS 40 also mentions that if an asset is revalued to fair value the gain and loss should be recorded in statement of profit and loss and 'NO DEPRECIATION IS CHARGED ON THE ASSET AFTER THE FAIR VALUE MEASUREMENT'.
Therefore, following the instructions laid out by IAS 40 Jada's basis for depreciation in the property is NIL.
2) Personal property with no intrinsic value:
Personal property that has no intrinsic value is called 'INTANGIBLE PROPERTY'.
Lets first understand what intrinsic value is. Intrinsic value of an asset refers to the market led and/or market-driven price of that asset. This means those assets which don't have an active market for sale and purchase will have no intrinsic value. This is absolutely the case with intangible assets, because most intangible assets are unique and uncommon, such as, GOODWILL, PATENTS, COPYRIGHTS, therefore due to the uniqueness and exclusivity of such assets an active market place doesn't exist therefore it's hard to determine an intrinsic value for such kind of assets/ properties.
Answer:
Explanation:
The production possibility curve is a graphical illustration and tool used for economic analysis. It shows the various combination of goods that can be produced given available resources.
The PPC looks like a bow shape and has an inverse relationship, this is because this is because to produce 1 more of product A you need tp be willing to let go of 1 unit of product B(assuming we can only manufacture 2 products) this concept is known aa Marginal Rate of Transformation.
In the Boston Consulting Group growth-share matrix, each of the four categories in the matrix represents a different investment strategy
More about growth-share matrix:
The growth share matrix was developed through teamwork. It was initially drafted by BCG's Alan Zakon, who would later go on to become the company's CEO, and then improved with his colleagues.
Bruce Henderson, the creator of BCG, popularised the idea in his 1970 essay The Product Portfolio. About half of all Fortune 500 businesses employed the growth share matrix when it was at its most successful.
It continues to be a key component of corporate strategy lessons taught in business schools today.
Learn more about growth-share here:
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