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andrew11 [14]
3 years ago
6

The standard deviation of the market-index portfolio is 25%. Stock A has a beta of 1.80 and a residual standard deviation of 35%

. a. Calculate the total variance for an increase of 0.20 in its beta. (Do not round intermediate calculations. Round your answer to the nearest whole number.)
Business
1 answer:
kap26 [50]3 years ago
7 0

Answer:

0.2925

Explanation:

Total variance = Systematic variance + Residual variance

= (β^2)Var(rM) + Var(e)

Where beta β= 1.80 and

residual standard deviation σ(e) = 0.35,

variance = (1.80^2)×0.25^2 + 0.3^2= .

=3.24 × 0.0625 + 0.09

= 0.2925

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On September 1, 2020, Vaughn Manufacturing issued a note payable to National Bank in the amount of $1440000, bearing interest at
Vilka [71]

Answer:

$28,800

Explanation:

I will just assume that there are three equal annual principal payments of $480,000. If we use $550,000, the total principal would = $1,650,000.

accrued interests from September to December = principal x (9%/12) x 4 months

principal = $480,000 x 2 = $960,000

accrued interest payable  = $960,000 x 0.75% x 4 = $28,800

3 0
3 years ago
If a gain of $225,000 is incurred in selling (for cash) a building having a book value of $900,000, the total amount reported in
Valentin [98]

Answer:

$1,125,000

Explanation:

Given;

Gain from asset disposal = $225,000

Book value of asset disposed = $900,000

Therefore,

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                                                                  = $1,125,000

This represents an inflow of cash and will be represented by a positive value in the statement of cash flows. The total amount reported in the cash flows from investing activities section of the statement of cash flows is $1,125,000

8 0
3 years ago
The local bank just invested a lot of money into hiring a professional decorator to redo the lobby area to make it more inviting
Digiron [165]
I feel like the answer is D
5 0
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On August 5, 2021, Wildhorse Furniture shipped 30 dining sets on consignment to Furniture Outlet, Inc. The cost of each dining s
elixir [45]

Answer:

$6,150

Explanation:

Calculation to determine what The total profit on units sold for the consignor is

Total profit=[ (20)×($820 - $320 )] - (20 × $820)(.05) - $1,710 - $570 - $750

Total profit=(20*$500)-($16,400*.05)-$1,710-$570-750

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Total profit=$6,150

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8 0
2 years ago
Tony Manufacturing produces a single product that sells for​ $80. Variable costs per unit equal​ $50. The company expects total
cestrela7 [59]

Answer:

The correct option is (A)

Explanation:

Given:

Projected sales for next month = $2,800 units

Selling price = $80

Total sales in dollars = 2800×80 = $224,000

Total variable costs = 2800×50 = $140,000

Fixed cost = $82,000

Operating income = Total sales - total variable cost - fixed cost

                              = 224,000 - 140,000 - 82,000

                              = $2,000

If selling price is reduced by 14% that is $68.8 which is (80×0.86) in anticipation of increase in sales by 14% that is 3192 units that is (2800×1.14) , then change in operating income is calculated below:

Total sales in dollars = 3192×68.8 = $219,610 (rounded)

Total variable costs = 3192×50 = $159,600

Fixed cost = $82,000

Operating income = Total sales - total variable cost - fixed cost

                              = 219,610 - 159,600 - 82,000

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It can be observed that operating income reduced by $23,990 that is (2000 - (-21,990)) if selling price is decreased by 14%.

6 0
3 years ago
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