Answer:
0.41
Explanation:
The computation of the weight of security Y in the minimum variance portfolio is shown below:-
Weight of security X = Standard deviation of security Y ÷ (Sum of the standard deviation of securities)
= 39% ÷ (39% + 27%)
= 39% ÷ 66%
= 59.01%
Weight of security Y = 1 - Weight of security X
= 1 - 59.01%
= 0.41
To choose the two best, we have a target of two candidates, A & B
The first one chosen is either A or B, with a propability of 2/5.
The second one is the only interested candidate out of 4, so 1/4.
So probability of choosing the best two is 2/5*1/4=1/10.
Alternatively, use the combination formula,
P(AB in any order) = 5!/(2!3!)=120/(2*6)=1/10
or in general,
n choose r = nCr = n!/(r!(n-r)!)
Answer:
b. Net Income
e. Cash from Investing Activities
Explanation:
Calculation to determine Which of the following items would be increased by the sale of the marketable securities
Using this formula
Gain from investment = Selling price of the security - Value of the security
Let plug in the formula
Gain from investment= $93,000 - $85,000
Gain from investment= $8,000
Based on the above calculation The sell of marketable security will INCREASE CASH which means that CASH FROM INVESTING ACTIVITIES will increase and NET INCOME will increase.
Therefore the items that would be increased by the sale of the marketable securities are :
b. Net Income
e. Cash from Investing Activities
Answer:
The answer for what is not a step in the decision making model is option E) consider qualitative factors
Explanation:
The steps in decision making model includes the following
- defining the problem
- collation of data
- Identifying the alternatives
- determining costs and benefits for both feasible and unfeasible alternatives
- total relevant costs and benefits for each alternative
- action Plan
Considering qualitative factors is a post decision making action. It happens during the decision analysis phase.
Answer:
1. 1.875 hours
2. $20.25
3. $37.97
Explanation:
The computation is shown below:
1. For Standard direct labor hours per oil change, it is
= (Actual time spent on the oil change) + (Setup and downtime + Cleanup and rest periods) × Actual time spent on the oil change
= 1.25 hours + (22% + 28%) × 1.25 hours
= 1.25 hours + 0.625 hours
= 1.875 hours
2. Standard direct labor hourly rate, it is
= (Hourly wage rate) + (Payroll taxes + Fringe Benefits) × hourly wage rate
= $15 + (10% + 25%) × $15
= $15 + $5.25
= $20.25
3. And, the standard direct labor cost per change is
= Standard direct labor hours per oil change × Standard direct labor hourly rate
= 1.875 hours × $20.25
= $37.97
We simply applied the above formulas for each one part
