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4 years ago

The standard deviation of a portfolio:

Business

1 answer:

lions [1.4K]4 years ago

4 0

Answer:

d. can be less than the standard deviation of the least risky security in the portfolio.

Explanation:

The modern portfolio theory is a mean-variance analysis and is the mathematical assessment of the portfolio of assessment such as the expected return and is maximized for a given set of risks and is by finding the weight of the first asset and then multiplying it by the variance of the assets and square of the variable of the second asset is multiplied by the second assets.

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The fact that one department may be labor intensive while another department is machine intensive explains in part why multiple

serious [3.7K]

Answer:

That statement is true

Explanation:

Pre-determined overhead is the method of overhead calculation that being done at the beginning of each accounting period. They use the number based on estimation from the performance on the previous period.

Determining pre-determined overhead of a machine is far easier compared to human labor since machine tend to give stable performance.

Since larger companies tend to use more machines than smaller companies, pre-determined overhad is more common among larger companies and rarely found in smaller ones.

8 0

3 years ago

Leaper Corporation uses an activity-based costing system with the following three activity cost pools:

AnnZ [28]

Answer:

Order processing= $846.67 per order

Explanation:

Giving the following information:

Activity costs:

Wages and salaries= 420,000

Depreciation= $170,000

Occupancy= $190,000

Activity Cost Pools:

Order Processing:

Wages and salaries= 0.3

Depreciation= 0.25

Occupancy= 0.45

Order processing 300 orders

First, we need to calculate the total overhead cost for order processing:

Wages and salaries= 0.3*420,000= 126,000

Depreciation= 0.25*170,000= 42,500

Occupancy= 0.45*190,000= 85,500

Total= $254,000

Now, using the following formula, we can determine the predetermined overhead rate:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Order processing= 254,000/300= $846.67 per order

8 0

3 years ago

Compute the discounted payback statistic for Project C if the appropriate cost of capital is 8 percent and the maximum allowable

Dimas [21]

Answer:

2.35 years

Explanation:

Discounted pay back period calculates the amount of years it takes to recover the amount invested from the cumulative cash flows.

Explanations on how the discounted cash flow period was calculated can be found in the attached image.

Check for the formula for discounted cash flows in the second attached image

I hope my answer helps you

6 0

4 years ago

Supply-side inflation can be caused by a continual A. decrease in aggregate supply while aggregate demand has significant decre

ser-zykov [4K]

Answer:

B. decrease in aggregate supply while aggregate demand remains unchanged

Explanation:

Supply-side inflation can be caused by a continual decrease in aggregate supply while aggregate demand remains unchanged

3 0

3 years ago

Which would be an example of a government price ceiling?

Arada [10]

Answer:

The correct answer is letter "B": limits on interest rates charged by credit card companies.

Explanation:

A Price Ceiling is a maximum amount a seller can charge for a product or service. A regulating authority -usually the local government- enforces price ceilings and they are typically set to protect low-income consumers for being priced-out of markets of essential goods and services.

Apartments provide a common example. Some cities provide price ceilings on what the landlords can charge for rent. A price ceiling in credit card interest rates would all into this category as well.

6 0

4 years ago