Answer:
The portfolio rate of return is 14%
Explanation:
The portfolio's rate of return is the weighted average of the expected rate of return =s of the individual stocks that form up the portfolio. Thus the formula for rate of return of a portfolio is,
Portfolio rate of return = wA * rA + wB * rB
Where,
- wA is the weight of security A in the portfolio
- wB is the weight of Security B in the portfolio
- rA is the rate of return of Stock A
- rB is the rate of return of Stock B
So, the portfolio return is,
rP or Portfolio return = 0.5 * 0.1 + 0.5 * 0.18
rP = 0.14 or 14%
Answer:
0.6
Explanation:
Variable Expense Ratio is calculated by taking Variable Expense and dividing it by Sales. This ratio indicates how much of the variable expense is incurred by company for each $1 Sales.
So, variable expense ratio is .6 or 60% (33,000 / 55,000).
Such questions also require the calculation of Contribution Margin Ratio which is calculated by taking Contribution Margin and Dividing it by Sales. This ratio tells us how much the company generates after covering variables expenses when the sales are $1.
So, Contribution Margin Ratio is .4 or 40% (22,000 / 55,000).
Answer:
(a) the environment is a dynamic one, and department and frontline managers can come up with more responsive plans than can central leadership.
(d) when managers come up with their own plans, they are likely to be more committed to following through on them.
Explanation:
Firstly, research has shown that both <u>decentralized decision structure (where managers are allowed to make their own decisions)</u> and planning activities; <u>are associated with higher performance in dynamic environments</u>.
This is one reason why the organization’s executives might opt for the decentralization approach to planning - because of the organization's dynamic nature
Secondly, when managers come up with their own plans, they are likely to be more committed to following through on them. When managers participate in planning it serves as a motivation for them to achieve it which is preferable to forcing the plans on them from senior management. This might have been the reason for Alcoa's improved performance when Paul O'Neill took over, in relation to safety records. Managers may have been allowed to make their own safety plans
Answer:
Increase in current account deficit.
Explanation:
If a country's total net savings e.g. total of government and private savings are less than the total domestic investment so this deficit must be financed by foreign capital in the form of borrowing. Foreign borrowing results in capital account surplus ultimately increasing trade deficit.
High rate of domestic investment while no change in savings results in or increase in current account deficit. The main reason is that low private or government savings as compared to private investment in domestic capital requires foreign investment.
The reason why Reebok believes that Sidney Crosby wearing their ice-skates will increase sales is due to Classical Conditioning.
<h3>How will classical conditioning increase sales?</h3>
Classical conditioning leads to people associating a certain stimulus with a certain effect.
Classical conditioning would therefore lead to people associating Reebok to Sidney Crosby and so they will buy more skates because of this association.
Find out more on classical conditioning at brainly.com/question/17583598
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