Answer:
The portfolio with a beta of 1.38 should earn the most risk premium based on CAPM.
The correct answer is B
Explanation:
A diversified portfolio with returns similar to the overall market will not earn the most risk premium because its beta is equal to 1.
A stock with a beta of 1.38 produces the most risk premium because any stock with the highest beta gives the highest risk-premium. This is the correct answer.
A stock with a beta of 0.74 does not provide the highest risk premium.
Us treasury bill does not provide any risk premium since it is the risk-free rate.
A portfolio with a beta of 1.01 does not produce the highest risk premium.
The right answer for the question that is being asked and shown above is that: "at the price consumers are willing to pay." An organization is ready to launch a new product. When working through its pricing strategy, the organization should set the price of the product <span>at the price consumers are willing to pay.</span>
Answer:
The Journal entry with their narrations shown below:-
Explanation:
The Journal Entry is shown below:-
1. Petty cash Dr, $271
To Cash $271
(Being establishment of petty cash fund is recorded)
2. Freight-in Expenses(delivery charges) Dr, $76
Supplies expenses Dr, $41
Postage expenses Dr, $49
Loan to employees (Accounts receivable) Dr, $33
Miscellaneous expenses Dr, $52
Cash short and over Dr, $8
To Cash $259
($271 - $12)
(Being disbursement of cash is recorded)
3. Petty cash Dr, $116
To cash $116
(Being increase in petty cash is recorded)
Answer:
Instructions are below.
Explanation:
Giving the following information:
Variable cost:
Direct material= $0.50 per unit
Fixed cost:
Fixed overhead= $15,000
Total cost for 10,000 units:
Variable cost= 0.50*10,000= 5,000
Fixed costs= 15,000
Total cost= $20,000
Total cost for 15,000 units:
Variable cost= 0.50*15,000= 7,500
Fixed costs= 15,000
Total cost= $22,500
Accurate measurement is VERY important in banking because banking is all about exact calculations. If one balance measure is off, the entire bank report will not be acurate. One little mess up and the entire calculation goes wrong.
