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Rina8888 [55]
3 years ago
8

You are considering adding a new security to your portfolio. To decide whether you should add the security, you need to know the

security's:
I. Expected return
II. Standard deviation
III. Correlation with your portfolio


- I only
- I and II only
- I and III only
- I, II, and III
Business
1 answer:
Aliun [14]3 years ago
5 0

Answer:

The correct answer is letter "D": I, II, and III.

Explanation:

Portfolios are pools of assets that allow small investors to access to diversified investment vehicles managed by professionals. Adding new securities to a portfolio requires knowledge of the asset:

  • Expected return:<em> returns expected from an investment given the investment's historical returns. </em>
  • Standard deviation:<em> measure applied to the annual rate of return of the investment to measure the volatility of the investment. </em>
  • Correlation:<em> statistical measurement of how two securities move in relation to each other.</em>
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The Green Fiddle is considering a project with sales of $86,800 a year for the next four years. The profit margin is 6 percent,
-Dominant- [34]

Answer:

This project should be rejected  because the AAR is 10.68 percent.

Explanation:

The accounting rate of return of the project needs to computed,compared with the required accounting rate of return  in order to decide whether the project should accepted or rejected:

Profit margin=$86,800*6%=$5208

Average operating assets=($97,500+$0)/2=$48.750

Accounting rate of return=profit margin/average operating assets*100

Accounting rate of return=$5,208/$48,750*100=10.68%

The project accounting rate of return is lower than the required accounting rate of return,hence the project should be rejected.

8 0
3 years ago
Companies prefer that their working capital is a positive amount rather than a negative amount. True or false
Roman55 [17]

Answer:

True

Explanation:

The working capital is the difference between the current assets that is used in daily operations e g cash to current liabilities that are to be met in daily operations e g suppliers credit.

It's better kept at ratio 2:1 for the Company to continuously meets his obligations in order to ensure perpetuity.

5 0
3 years ago
Garza Corporation has two production departments, Casting and Customizing. The company uses a job-order costing system and compu
Misha Larkins [42]

Answer:

d. $73,500

Explanation:

The computation of the estimated total manufacturing overhead for the customizing department is shown below:

= Total fixed manufacturing overhead cost + Variable manufacturing overhead cost

where,

the variable manufacturing overhead cost = Customized Direct labor-hours × Variable manufacturing overhead per direct labor-hour

= 7,000 units × $5

= $35,000

And, the Total fixed manufacturing overhead cost is $38,500

Now put these values to the above formula

So, the answer would be equal to

= $38,500 + ($7,000 hours × $5 per hour)

= $38,500 + $35,000

= $73,500

5 0
4 years ago
Cost sharlng and Medic beneficlarles:The states possess an option of charging premium for establishing spending out-of-pocket res
Dima020 [189]

Answer:

Medicaid can provide cost-sharing assistance. Depending on your income, you may qualify for the Qualified Medicare Beneficiary (QMB). If you are enrolled in QMB, you do not pay Medicare cost-sharing, which includes deductibles, coinsurances, and copays.

Explanation:

The Centers for Medicare & Medicaid Services (CMS) are responsible for implementing laws and various forms of guidance, sub-regulatory guidance operational updates and technical clarifications passed by Congress related to Medicaid and the Basic Health Program to explain what states and others need to do to comply.

There are 4 “metal” categories of health insurance plans: Bronze, Silver, Gold, and Platinum. These categories show how you and your plan share costs. Plan categories are independent from quality of care.   The total costs for health care include a monthly premium bill to the insurance company and out-of-pocket costs, which have a big impact on your total spending on health care and sometimes more than the premium itself as the out-of-pocket maximum is the amount you have to spend for covered services in a year, and only after you reach this amount, the insurance company pays 100% for covered services; and the deductible, which is the amount you have to spend for covered health services before your insurance company pays anything (except free preventive services). The Plan and network types allow you to use or not doctors or health care facilities. Plans & prices are issued according to the income and household information and they determine the copayments and coinsurance, which are payments you make each time you get a medical service after reaching your deductible

There are plans that have very low monthly premiums, but have high deductibles and pay less of your costs when you need care.

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7 0
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Lina20 [59]

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Inside making plans, there are 4 important categories: strategic, tactical, operational, and contingency planning. Strategic planning is a manner that groups use to determine their dreams and targets.

Strategic planning is an agency's procedure of defining its approach or direction and making selections on allocating its assets to achieve strategic goals. it is able to also extend to govern mechanisms for guiding the implementation of the strategy.

Learn  more about planning strategies here brainly.com/question/17924318

#SPJ4

3 0
2 years ago
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