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a_sh-v [17]
3 years ago
6

The reward-to-risk ratio for stock A is less than the reward-to-risk ratio of stock B. Stock A has a beta of 0.82 and stock B ha

s a beta of 1.29. This information implies that:
Business
1 answer:
Katen [24]3 years ago
4 0

Explanation:

According to the question , the reward - to - risk ratio for the stock A is lesser than that of the Stock B .

The beta values for both the stock is given as -

Stock A = 0.82

and ,

Stock B = 1.29 ,

From the above information , it can be implied that either stock B is under price or the stock A is overpriced, or both  .

Since ,  in the above case the absolute sense can not be determined and only the judgement can be made .

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Last year a business had fixed costs of £875,000 and revenue of 2.5 million. The business had total variable coats of 50,000 and
Tomtit [17]

Answer:

Total cost of the business = £925,000

Explanation:

Solution:

Data given:

Fixed cost = £875000

Revenue generated = 2.5 million

Total variable cost = 50,000

Units Sold = 100,000

What is the total cost of the business = ?

Formula for total cost of the business is:

Total Cost = Total Fixed Cost + (Average variable cost per unit x units produced)

Here we have, Total variable cost not the average variable cost per unit.

So,

Average variable cost per unit = Total variable cost/ units produced

Average variable cost per unit = 50,000/100,000

Average variable cost per unit = 1/2 = £0.5 per unit.

Now,

Total cost of the business = Total Fixed Cost + (Average variable cost per unit x units produced)

Let's plug in the values.

Total cost of the business = 875,000 + (0.5 x 100,000)

Total cost of the business = £925,000

6 0
3 years ago
Supply of Children's Books Price (dollars) Quantity (books) $12 24 10 20 8 16 6 12 4 8 2 4 0 0 Instructions: Round your answers
Nataly_w [17]

Answer:

40%

Explanation:

the percentage change in price using the midpoint method = {(P₂ - P₁) / [(P₂ + P₁)/2]} x 100

= {($6- $4) / [($6 + $4)/2]} x 100 = [$2 / ($10 / 2)] x 100 = ($2 / $5) x 100 = 0.4 x 100 = 40%

The advantage of using the midpoint method for calculating percentage changes is that it doesn't matter if the change is positive or negative, e.g. it will yield the same result if the price increases or decreases in the same amounts.

5 0
3 years ago
Why is it important to understand the needs of your audience in a cover letter?
Nadusha1986 [10]
I would say d.

hope i helped :)
8 0
3 years ago
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How JSE reported the negative impact of the coronavirus on the economic conditions of South Africa
andrew-mc [135]

Answer:

Don't know bro soooooooooory

Explanation:

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4 0
3 years ago
What key role those a cost-benefit analysis play? How is it used?
ExtremeBDS [4]

Answer:

Computing, Analysing & Comparing : 'Benefit' of projects per unit 'Cost' incurred.

Explanation:

Cost Benefit Analysis is used to ascertain Benefit of a decision with regards to its cost. The decisions might be various : investing in a project, hiring a labour etc. The cost & benefits of the decision are measured in 'net present value', as costs / benefits (specially) might be scattered over a long period of time, & they need to be adjusted for price change then.

Benefit - Cost Ratio (as per Cost Benefit Analysis) : =

<u>Total Benefit in Net present value</u>

Total Cost in Net present value  

If a project / decision has higher Benefit - Cost ratio, it provides more benefit per unit of cost & vice versa in case of low Benefit - Cost ratio. A project with high Benefit - Cost ratio would be preferred over the one having lower benefit - cost ratio.

8 0
3 years ago
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