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goldenfox [79]
3 years ago
5

Kate recently invested in real estate with the intention of selling the property one year from today. she has modeled the return

s on that investment based on three economic scenarios. she believes that if the economy stays healthy, then her investment will generate a 30 percent return. however, if the economy softens, as predicted, the return will be 10 percent, while the return will be -25 percent if the economy slips into a recession. if the probabilities of the healthy, soft, and recessionary states are 0.5, 0.3, and 0.2, respectively, then what are the expected return and the standard deviation of the return on kate's investment?

Business
1 answer:
aliina [53]3 years ago
5 0
Check the attached file for the solution. 

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Frannie Fans currently manufactures ceiling fans that include remotes to operate them. The current cost to manufacture 10,300 re
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Answer:

Explanation:

this is called make or buy decision, in this prblem we consider the that are directly related to product which can be avoided by purchasin g from other supplier instead producing it, fix cost irrelevant cost because they will occur whether or not company make production of items.

lets solve the problem as follows

Total Variable Cost :

Material                                66950

Labor                                    56650

Variable O.H                        30900

Total                                     154500

Remotes =  10300

Cost per unit Excluding fix cost=  154500/10300 = 15

Cost per unit Including fix cost=  206000/10300 = 20

1.cost between making and buying the remotes if none of the fixed costs can be avoided

Making Cost =                20

Buying Cost  =                18  

Differrence   =                 2

Net income If purchase from outside = 2*10300 = 20600

2. if $20,600 of the fixed costs can be avoided.

Total Cost       =  206000    

Cost avoided   =  -20600

Net Cost          =   185400

Cost per units = 185400/10300 = 18

the cost of making and buying is equal due to decrease fix cost by 20600.

Change in net income = 20600

3.

Rental Income = 20600

Fix Cost save  =20600

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