I believe the answer is A
Answer: ANSWER: Pure
Explanation: Only pure risks are insurable because they involve only the chance of loss. They are pure in the sense that they do not mix both profits and losses. ... Both speculative risk and pure risk involve the possibility of loss. However, speculative risk also involves the possibility of gain as well - even if there is no loss.
The purpose of advertising is to inform consumers about a product or service.
Answer:
1.763
Explanation:
Data provided in the question:
Beta of $40 million portfolio = 1
Risk-free rate = 4.25%
Market risk premium = 6.00%
Expected return = 13.00%
Now,
Expected return = Risk-free rate + ( Beta × Market risk premium )
13.00% = 4.25% + ( Beta × 6.00% )
or
Beta × 6.00% = 8.75%
or
Beta = 1.458
Now,
Beta of the total profile should be equal to 1.458
Thus,
Weight of $40 million portfolio = $40 million ÷ [ $40 million + $60 million]
= 0.4
Weight of $60 million portfolio = $60 million ÷ [ $40 million + $60 million]
= 0.6
therefore,
the average beta
1.458 = 0.4 × 1 + 0.6 × ( Beta of $60 million portfolio )
or
1.058 = 0.6 × ( Beta of $60 million portfolio )
or
Beta of $60 million portfolio = 1.763
Answer:
(a) $921,100
(b) $643,500
(c) $567,700
Explanation:
(a) Cost of goods sold:
= Sales - Gross profit
= $1,261,800 - $340,700
= $921,100
(b) Direct Material Cost:
= Materials purchased - Indirect materials - Materials inventory
= $643,500 - $46,700 - $46,700
= $643,500
(c) Direct labor cost:
= Total manufacturing costs for the period - Direct materials - factory overhead (Indirect labor + Indirect materials + Other factory overhead)
= $1,393,000 - $643,500 - $181,800
= $567,700
