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3 years ago

Investment Management Inc. (IMI) uses the capital market line to make asset allocation recommendations. IMI derives the

Business

1 answer:

algol133 years ago

5 0

Answer:

The expected return that IMI can provide subject to Johnson's risk constraint is 8.5%

Explanation:

Capital Market Line (CML)

Expected return on the market portfolio, E( $r_m$ ) = 12 %

Standard deviation on the market portfolio, σ $_p$ = 20%

Risk-free rate, $r_f$ = 5%

E( $r_c$ ) = $r_f$ + [ E( $r_p$ ) - $r_f$ ] × ( σ $_c$ ÷ σ $_p$ )

= 0.05 + [ 0.12 - 0.05] × (0.10 ÷ 0.20)

= 8.5%

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Assume that the hourly price for the services of tarot card readers has risen and sales of these services have also risen. One c

Mars2501 [29]

Answer:

D the demand for tarot card readers has increased.

Explanation:

At constant supply, price of goods or services tend to increase as demand increases. In this case, the demand for the services has increased, meaning that demand for tarot card reading has increased relative to the supply of the service. This has resulted in an increase in price of the service.

8 0

3 years ago

On January 1, 2019, Al's Sporting Goods purchased store fixtures at a cost of $180,000. The anticipated service life was 10 year

xz_007 [3.2K]

Answer:

The journal entry is shown below:

Explanation:

The journal entry is as follows for recording the depreciation:

Depreciation expense A/c.........................Dr $ 14,400

Accumulated depreciation...............Cr $ 14,400

Working Note:

Depreciation rate = 100 % / Number of years of life

= 100 % / 10 years

= 10%

This will be multiplied by 2

= 10% × 2

Depreciation rate = 20%

Using the double declining method:

In year 2019

Depreciation expense = Cost of purchasing × Depreciation rate

= $180,000 × 20%

= $36,000

In year 2020

Depreciation expense = ( Cost of purchasing - Depreciation expense of last year) × Depreciation rate

= ($180,000 - $36,000) × 20%

= $144,000 × 20%

= $28,800

Using the Straight Line method:

In the year 2021

Depreciation expense = (Cost of purchasing - Depreciation expense of 2 years) / Number of years of useful life

= ($180,000 - $64,800) / 8

= $115,200 / 8

= $14,400

5 0

3 years ago

All of the following would cause the aggregate demand curve to shift except A. decreased security about jobs and future income.

gregori [183]

Answer:

price level changes

Explanation:

The demand curve refers to a graph that shows the change in the demand for a commodity or service as a result of the change in its price.

The aggregate demand curve is a graph that shows the total quantity of all goods and services demanded by the economy at different prices.

Aggregate demand curve shifts except when price level changes.

5 0

3 years ago

Budgeting material purchases budget. The Howell Company has prepared a sales budget of 42,000 finished units for a 3- month peri

tangare [24]

Answer:

The number of Gallon materials Howell company should buy is 166000 Gallons

Explanation:

Finished goods

opening inventory 11000

produced

closing inventory 13000

finished goods sold 42000

using the bottom up approach to get goods produced

sold goods + closing goods - opening goods = produced =44000 goods

Direct material ( Gallons)

opening materials 66000

purchased 166000

available for use 232000

used in production 176000

closing gallons 56000

We use the bottom up approach to get the materials to be purchased

closing stock plus used in production to get available for use then subtract opening material to get purchased = 166000

4 0

3 years ago

An employee earns $5,550 per month working for an employer. The FICA tax rate for Social Security is 6.2% of the first $128,400

Klio2033 [76]

Answer:

$4,713.425

Explanation:

The computation of amount of net pay for the employee for the month of January is shown below:-

Deductions = (Gross earning × Social security tax rate) + (Gross earning × Medicare tax rate) + Federal income taxes + Health insurance + Contribution of retirement plan

= ($5,550 × 6.2%) + ($5,550 × 1.45%) + $184 + $152 + $76

= $344.1 + $80.475 + $184 + $152 + $76

= $836.575

Net pay = Gross earning - Deductions

= $5,550 - $836.575

= $4,713.425

Therefore for computing the net pay we simply applied the above formula.

3 0

3 years ago