Answer:
Option D is the correct option
Explanation:
To find the optimal fund to combine with risk free rate of return, we will use Coefficient of variation,
Coefficient of variation(CoV) = Standard Deviation/Expected Return
CoV of Buckeye = 14%/20% = 0.7
CoV of Wolverine = 11%/12% = 0.9167
So, higher the CoV higher the risk, we will take Buckeye to combine with Risk Free Return.
Hence, Option A
- Required target return of portfolio = 22%
Risk Free return = 8%
Buckeye Return = 20%
Let the weight of Buckeye be X ,& weight of risk free be (1-X)
Required return = (WRF)*(RRF) + (WB)*(RB)
22 = (1-X)(8) + (X)(20)
22 = 8-8X + 20X
14 = 12X
X = 1.17
SO, weight of Buckeye is 1.17 or 117%
while weight of Risk free is -0.17 (1-1.17) or -17%
Hence, ans is OPTION D
The financial plan is a section of a business plan that is only shared with those who really need to know such as loan officials, lawyers & accountants.
1 - unearned revenue
2 - prepaid expense
One of the main cause is an expansion in the cost of raw materials for a certain product. The law of expanding costs is a rule that expresses that once all components of creation are at most extreme yield and proficiency, delivering more will cost more than normal. As generation builds, the open door cost does also.
Answer:
correct option is a) $441,000
Explanation:
given data
Cash payments = $455,000
beginning accounts payable = $64,000
ending accounts payable = $50,000
solution
we use here T account equation and get accrual-basis purchases that is
ending accounts payable = beginning accounts payable + Accrual purchases - Cash payments .......................1
put here value we get
$50,000 = $64,000 + Accrual purchases - $455,000
solve it we get
Accrual purchases = $441,000
so correct option is a) $441,000
