When you seek to define an issue, you should try to frame it in positive terms. T or F

The relationship between the type of diversification and overall firm performance Multiple Choice takes on the shape of an inver

Elan Coil [88]

Answer:

takes on the shape of an inverted U so related diversification has the best performance.

Explanation:

A portfolio variance is used to determine the overall risk or dispersion of returns of a portfolio and it is the square of the standard deviation associated with the particular portfolio.

The portfolio variance is given by the equation;

$Variance = w^{2}_{1} d^{2}_{1} + w^{2}_{2} d^{2}_{2}+2w_{1}w_{2}C_{OV_{1, 2}}$

Where;

$w_{n}$ = the weight of the nth security.

$d^{2}_{n}$ = the variance of the nth security.

$C_{OV_{1, 2}}$ = the covariance of the two security.

The relationship between the type of diversification and overall firm performance takes on the shape of an inverted U, so related diversification has the best performance.

4 0

3 years ago

Oriole Leasing Company leases a new machine to Sharrer Corporation. The machine has a cost of $65,000 and fair value of $87,000.

Hatshy [7]

Answer and Explanation:

1. The Preparation of amortization table is shown below:-

<u>Date Rent payment Interest Reduction of Liability </u>

<u> revenue Principal </u>

01.01.2017 $0 $0 $0 $87,000

31.12.2017 $33.759 $6,960 $26,799 $60201

(87,000 × 8%)

31.12.2018 $33.759 $4,816 $28,943 $31,258

(60,201 × 8%)

31.12.2022 $33,759 $2,501 $31,258 $0

(32,258 × 8%)

Working note

The computation of the yearly lease amount is shown below:-

Period Table value PV at 8%

1 0.92593

2 0.85734

3 0.79383

Total 2.57710

Lease rent $33.759

($87,000 ÷ 2.5771)

2. The Journal entry is shown below:-

Lease receivable Dr, $87,000

Cost of goods sold Dr, $65,000

To Sales $87,000

To Inventory $65,000

(Being lease commenced is recorded)

3. The Journal entry is shown below:-

ROU assets Dr, (right of use) $87,000

To lease liability $87,000

(Being ROU assets recognized is recorded)

4. ROU assets Dr, (right of use) $96,500

To lease liability $87,000

To Cash $9,500

(Being ROU assets recognized of direct costs is recorded)

6 0

3 years ago

If an agreement can not be made, a democratic leader will

MArishka [77]

Answer:

B

Explanation:

cuz u need to talk about it as a group

5 0

3 years ago

Read 2 more answers

The risk-free rate of return is 2,2 percent, the expected market return is 11 percent, and the beta for solstice, inc. is 1.12.

hichkok12 [17]

A unique approach known as the capital asset pricing model or CAPM is employed in finance to determine the correlation between the risk of investing in a particular share and expected dividends. The expected returns for security are calculated using the CAPM model.

<h3>CAPM model</h3>

Required rate of return = Risk-free return + Beta (Market return - Risk-free return)

Required rate of return = 2.2% + 1.12 (11% - 2.2%)

Required rate of return = 12.05%

Hence, the correct option is D (12.05%).

The risk-free rate is the rate of return offered by an investment that carries zero risk. Every investment asset carries some level of risk, however small, so the risk-free rate is.

To learn more about CAPM models visit the link

brainly.com/question/2254619

#SPJ4

6 0

2 years ago

Irene has made Sara an offer on the purchase of a capital asset. Irene will pay (1) $200,000 cash or (2) $50,000 cash and a 6% i

AlexFokin [52]

Answer:

Irene would prefer the instalment sale because she can defer the payment of tax until a future date. On the other hand, if she accept the cash sale, she would have to pay the tax immediately. The amount invested in certificate of deposit would be after tax.

Thus the value of an instalment payment would be greater than the value of a cash payment

Explanation:

5 0

3 years ago