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timama [110]
3 years ago
14

Investors expect the market rate of return this year to be 10%. The expected rate of return on a stock with a beta of 1.2 is cur

rently 12%. If the market return this year turns out to be 8%, how would you revise your expectation of the rate of return on the stock
Business
1 answer:
Artemon [7]3 years ago
3 0

Answer: 9.6%

Explanation:

Expected rate of return on the stock will change by beta times the unanticipated

change in the market return:

1.2 ( .08 - .10) = -2.4%

• Therefore, the expected rate of return on the stock should be revised to:

.12 - .024 = 9.6%

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ournalize the entries to record the following: June 1 Established a petty cash fund of $200. 30 The amount of cash in the petty
Keith_Richards [23]

Answer:

The journal entries are as follows:

(i) On June 1,

Petty cash A/c    Dr. $200

To cash                                 $200

(To record petty cash established)

(ii) On June 30,

Postage A/c             Dr. $25

Entertainment A/c   Dr. $100

Miscellaneous A/c   Dr. $20

To cash short and over A/c                 $2

To cash ($200 - $57)                           $143

(To record cash replenishment)                      

8 0
3 years ago
If a corporation is found guilty of committing a crime and assessed a fine, who typically ends up being punished?
Afina-wow [57]

Answer:

Option (A)

Explanation:

If a corporation is found guilty of committed a crime. Then the corporation likely to face a hefty fines for committing a crime. This means the owners of the corporation and its stake holders are responsible for this crime if any of the employee of the corporation commits a crime. Hence at last the owners of the corporation and the stake holders are end up being punished.

5 0
3 years ago
Which two forms of financial aid require the student to bear the costs of college education?
Flauer [41]
The answer is A. direct loans, and C. work-study programs.
3 0
4 years ago
Amy and Bill are fixing up their house by painting walls and installing electrical outlets. In one hour, Amy can paint 8 walls,
Lelechka [254]

Answer:

1.33 walls

1 wall

Explanation:

Tradeoff is the opportunity cost of taking a particular decision

Opportunity cost of the next best option forgone when one alternative is chosen over other alternatives

My doing he outlet, the opportunity to paint is forgone

Amy = 8/6 = 1.33

Bill = 5/5

3 0
3 years ago
Bellingham Company produces a product that requires 2.3 standard pounds per unit. The standard price is $3.45 per pound. 15,700
Andru [333]

Answer:

A) Price       7,080     U

B) Quantity 4,630.5  U

C) Total        11.710,5‬ U

Explanation:

DIRECT MATERIALS VARIANCES

(standard\:cost-actual\:cost) \times actual \: quantity= DM \: price \: variance

std cost  $3.45

actual cost  $3.65

quantity 35,400

difference  $(0.20)

(0.2) \times 35,400 = DM \: price \: variance

price variance  $(7,080.00)

(standard\:quantity-actual\:quantity) \times standard \: cost = DM \: quantity \: variance

std quantity 36110.00

actual quantity 35400.00

std cost  $3.45

difference 710.00

(710) \times 3.45 = DM \: quantity \: variance

quantity variance  $2,449.50

Total Variance: 2,449.5 - 7,080 = -4.630,5‬

8 0
4 years ago
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