Answer:
Portfolio expected return = 0.092225 or 9.2225%
Explanation:
The expected portfolio return is a function of the weighted average of the individual stocks' returns that form up the portfolio. The expected return on the portfolio containing two stocks can be calculated as follows,
Portfolio Expected Return = wA * rA + wB * rB
Where,
- w represents the weight of stocks
- r represents the return from each stock
To calculate the weight of each stock in the portfolio, we first need to calculate the total investment in the portfolio.
Total Investment = 4740 + 3260 = 8000
Portfolio expected return = 4740/8000 * 8% + 3260/8000 * 11%
Portfolio expected return = 0.092225 or 9.2225%
Answer: d. cause businesses to increase their focus on nonprice aspects of their promotional message.
Explanation: The internet has made it possible for shopping to be done online. Businesses will most likely increase their focus on nonprice aspects of their promotional message as a result of the technology. This would be largely due to an increase in price competition as more and more consumers have instant access to prices from all around the world and in response to this, nonprice competition is more likely to be on the rise.
Answer:
Complete the following statements: <u>THEORETICAL CAPACITY</u> would result in the largest production volume variance; <u>NONE OF THE CAPACITY CHOICES</u> would result in a favorable production volume variance.
a. theoretical capacity; none of the capacity choices
Explanation:
production volume variance = (actual unit quantity manufactured - budgeted unit quantity manufactured) x budgeted cost per unit
(actual production - theoretical capacity) x budgeted cost per unit = (250,000 - 275,000) x budgeted cost = 25,000 x budgeted cost
None of the capacity choices would result in a favorable variance because actual production was lower than all of them.
actual production 250,000 < theoretical 275,000
actual production 250,000 < practical 265,000
actual production 250,000 < normal 260,000
Answer:
$700,000
Explanation:
The portion of the long term note payable that is due within one year must be reported as current portion of long term debt (CPLTD) and must be included under current assets. In this case, the current portion of the long term debt is $100,000, so the portion that must be reported as long term debt is $800,000 - $100,000 = $700,000.
Answer:
1.22%
Explanation:
The modified duration of the bond gives an indication of change in price due to a 1% change in the yield to maturity,hence, the bond modified duration is computed using the formula below:
modified duration=Macaulay Duration/(1+YTM)
Macaulay Duration=4.2
YTM(initial)=3%
modified duration=4.2/(1+3%)= 4.08
That for 1% change in yield to maturity price would change 4.08%
0.3% change in yield(3.3%-3%)= 4.08%*0.3%=1.22%
