Answer and Explanation:
Given:
For portfolio A
Expected return of 12%
beta = 0.5
Risk premium for A = ?
For portfolio B
Expected return of 13%
beta = 0.4
Risk premium for B = ?
Risk-free rate of return = 5%
Computation:
For portfolio A
12% = 5% + (0.5 × risk premium for A)
risk premium for A = 14%
For portfolio B
13% = 5% + (0.4 × risk premium for B)
risk premium for B = 20%
short position "A"
Long position "B"
Answer:
a. Current Assets and Property, Plant, and Equipment
Explanation:
These classify the assets and liabilities in the classified balance sheet into various types Including assets that are divided into Property, Plant, and Equipment, current assets.
Liabilities are similarly divided into current liabilities, long-term liabilities The accounting equation is used in any balance sheet that means
Total assets = Total liabilities + shareholder equity
Answer:
Option (A) is correct.
Explanation:
Given that,
Estimated fixed cost = $288,000
Estimated variable cost = $14 per unit
Units expects to produce and sell = 60,000
Selling price = $20 per unit
We first need to calculate the contribution margin:
Contribution margin per unit:
= Selling price - Variable cost
= $20 - $14
= $6
The break even point in units is the ratio of fixed cost to the contribution margin per unit.
Break-even point in units:
= Fixed cost ÷ Contribution margin per unit
= $288,000 ÷ $6
= 48,000 units
Answer:
ROI = Net operating income x 100
Average operating assets
ROI = $1,924,320 x 100
$6,000,000
ROI = 32.1%
The correct answer is C
Explanation:
ROI is the ratio of net operating income to average operating assets multiplied by 100.
Answer:
X (the variable on the horizontal axis) will increases by 2.
Explanation:
The slope of a straight line is -3. So, m=6.
Slope of a straight line is
Y (the variable on the vertical axis) decreases by 6.
Change is y = -6
We need to find the change in (the variable on the horizontal axis).
Substitute the given values in the above formula.
Note: All options are incorrect.
Therefore, X (the variable on the horizontal axis) will increases by 2.
