Answer:
The correct choice is D)
All securities DO NOT lie on the Securities Market Line (SML) in the capital asset pricing model (CAPM).
Explanation:
The security market line (SML) is a line drawn on a chart that portrays a graphical representation of the capital asset pricing model (CAPM)—which shows various degrees of market risk, for different marketable securities, plotted against the expected return of the entire market at any given time.
Cheers!
Answer:
a) $ 40,480
b) 17.60%
Explanation:
Working:
a. Increase in sales a 2,30,000
Less:
b=a*5% 11,500
c=a*2% 4,600
- Production ans selling costs
d=a*71% 1,63,300
e=a-b-c-d 50,600
f=e*20%
10,120
Net Income 40,480
b)Return on sales
Net Income/Sales
40480/230000
17.60%
Answer:
Total= 389,000 units
Explanation:
Giving the following information:
January February March Expected sales (in units) 440,000 390,000 380,000 Desired ending finished goods inventory (in units) 39,000 38,000 40,000.
February:
Sales= 390,000
Ending inventory= 38,000
Beginning inventory= (39,000)
Total= 389,000 units
Answer:
d. There would be a decrease in the current account and an increase in the capital account.
Explanation:
The balance of payment in accounting typically comprises of capital account and current account, it is used for the recording of business transactions between two countries. Capital accounts are used to record any trade between two countries relating to financial assets and liabilities.
The current account is used to record trades relating to import and export of goods and services in a country.
Hence, if the U.S. government cuts back on government spending and increases taxes in an effort to reduce the budget deficit. The effect of these changes on the U.S. balance of payments is that there would be a decrease in the current account because it has no effect on the value of assets and liabilities, thereby affecting the export and import of goods and services.
Also, there would be an increase in the capital account due to the fact that the government tends to borrow more and seeks foreign investors.
