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4 years ago

Which of the following statements is TRUE?

Business

1 answer:

dedylja [7]4 years ago

8 0

Answer:B. The portfolio of smaller stock are typically less volatile than individual small stock.

C. On average smaller stock have lower return than larger stock.

Explanation:

The larger stock most times have a higher volatility than smaller stock and usually have better records of performance, this therefore makes their returns higher than lower stock.

On an average the volatility of a smaller stock is greater than that of a portfolio of smaller stock for the portfolio stock will compensate for one another to limit the volatility.

A treasury bill has a government guarantee, their return is therefore lower and same applies to their volatility when compared to smaller stock.

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On Monday morning you sell one June T-bond futures contract at 97:27, that is, for $97,843.75. The contract's face value is $100

-BARSIC- [3]

Answer:

A. Wednesday

Explanation:

On which of the given days do you get a margin call? On Wednesday

Margin account will falls below the maintenance margin of $2,000 after the market close on Wednesday.

The margin call will be $2,000 - [2,700 - (100,000 - 97,843.72)] =$1,456.28.

7 0

3 years ago

Four roommates are planning to spend the weekend in their dorm room watching old movies, and they are debating how many to watch

denis-greek [22]

Answer:

1. Inside the dorm room, the movies are Non-Rival which means that one person can watch the movie and it will not diminish the ability of others to watch as well.

Also as they are all in the same dorm, the showing of the movie is Non-Excludable as well because no one can stop the other from watching.

Public good is both Non-Rival and Non-Excludable so the showing of a movie IS a public good.

Musashi Sean Bob Eric Total Willingness to pay

10 9 8 3 30

8 7 6 2 23

6 5 4 1 16

4 3 2 0 9

2 1 0 0 3

The optimal number of movies that can be rented is dependent on their total willingness to pay. If their Total willingness to pay for the movie is above $8 which is the cost of a movie, then they will get it. From the table, the fifth movie is below the price of $8 so they should rent 4 movies.

3. If they rent 4 movies and there are 4 of them then the cost per person is;

= (8 *4)/4 people

= 24/4

= $8

This means that each roommate will pay $8.

3 0

3 years ago

On January 1, 2022, the Ivanhoe Company ledger shows Equipment $48,300 and Accumulated Depreciation $17,720. The depreciation re

Cerrena [4.2K]

Answer:

$13,290

Explanation:

Straight line depreciation expense = (book value of asset - salvage value ) / useful life

Book value of the asset = $48,300 - $17,720 = $30,580

($30,580 - $4,000) / 2 = $13,290

8 0

3 years ago

Mackie Services operates a website that links experienced statisticians with businesses that need data analyzed. Statisticians p

jasenka [17]

Answer:

d. Revenue of $375

Explanation:

The amount paid by the Vetmed associates is an expense for associates

The amount received by statisticians is a revenue for them

Mackie Services an intermediate between the two and so, the percentage amount received by Mackie Services is a revenue

Mackie's income statement would include a revenue of:

= Amount paid to statisticians * % Received

= $1,500 * 25%

= $375

6 0

3 years ago

You have saved $120,000 for your child to attend college. If it is in an account earning an annual rate of 8%, how much can yo

harkovskaia [24]

Answer:

I will take $36,230.5 to pay for the education of child.

Explanation:

Cash Invested in the saving account will earn a return of 8% each year and this amount could be withdrawn by the me to pay for the education of child.

We will use following formula to calculate the annual payments

P = r ( PV ) / [ 1 - ( 1+ r )^-n ]

where

PV = amount of investment = $120,000

r = rate of return = 8%

n = number of period = 4 years

P = 8% ( 120,000 ) / [ 1 - ( 1 + 0.08 )^-4 ]

P = 36,230.5

3 0

3 years ago