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Setler79 [48]
3 years ago
15

Suppose Amy currently allocates 25% of her portfolio to a diversified group of stocks and 75% of her portfolio to risk-free bond

s; that is, she chooses combination B. She wants to increase the average annual return on her portfolio from 2.5% to 4.5%. In order to do so, she must do which of the following? Check all that apply. Sell some of her stocks and use the proceeds to purchase bonds Accept more risk Sell some of her stocks and place the proceeds in a savings account Sell some of her bonds and use the proceeds to purchase stocks
Business
1 answer:
Ket [755]3 years ago
5 0

Answer:

Accept more risk.  

Sell some of her bonds and use the proceeds to purchase stocks .

Explanation:

Typically, the rate of returns associated with stock is higher than the rates of return associated with bonds. This is because a higher risk is associated with stocks, while it is safer to hold bond because bond guarantee payment while stock does not as it fluctuates in value.

Therefore, the intention of Amy to increase the average annual return on her portfolio from 2.5% to 4.5% implies she has to sell some of her bonds which currently has a share of 75% and use the proceeds to purchase stocks which promises a higher rate of return. But at the same time, Amy has to accept more risk associated with stocks.

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The preferred approach to allocate joint costs to products is the value basis, which allocates a joint cost in proportion to the
ddd [48]

Allocation of joint costs in proportion to the value of the output of the sales which were produced in the process during at the split-off point is a preferred approach.

<h3>What are joint costs?</h3>

Joint costs involve the benefit of more than one product, and the separation of the costs of such products is impossible as the benefits related thereto are also joint.

One of the best examples of joint costs is in a condition when a cattle-owner feeds both the flock of sheep and cattle of cows at the same time. One cannot differentiate between the separate costs allocated.

Hence, it may be said that value basis is the most appropriate method for the purpose of allocation of joint costs being incurred in the proportion as it may be.

Learn more about joint costs here:

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6 0
2 years ago
The omission of the adjusting entry to record depreciation expense will result in an
Gemiola [76]

Answer:

B.overstatement of assets and an overstatement of owners' equity.

Explanation:

To recognize depreciation expense,the entries required are

Debit depreciation expense

Credit Accumulated depreciation

The accumulated depreciation is a credit balance in the fixed asset account. Depreciation is also an expense that reduces net income and thus reduces the owners equity.

Hence an mission of the adjusting entry to record depreciation expense will result in an overstatement of assets and an overstatement of owners' equity.

6 0
3 years ago
Today, sandra will present a report to her class on the top ten income-producing countries in the world. most of the countries t
Radda [10]

<span>The world’s richest countries are mostly found in Europe. Therefore Sandra will be presenting most of the countries located in <u>“Europe”</u>.</span>

<span>One possible factor why Europe is so rich is because of the numerous wars it encountered.  Aside from the wealth obtained in the conquest, wars also lead to advancement in technology. </span>

3 0
3 years ago
A firm has a production function satisfying constant returns to scale. Their cost of producing 100 units of their product is $20
umka21 [38]

Answer:

1,000,000

Explanation:

As there are constant returns to scale the cost to produce a greater output will grow following a linear fucntion thus,

if 100 units units are produced at a cost of 200,000 dolllars

then 500 units will be produced five times that amount:

200,000  x 500/100 = 200,000 x 5 = 1,000,000

The total cost for 500 units will be a million dollars

8 0
3 years ago
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If you had a choice how much are you willing to pay per month to have access to and use the various social media platforms?​
svet-max [94.6K]

Answer: $10 per month

Explanation:

$10 would be an ideal amount for me to pay to have access to the various social media sites if the major sites are on offer.

I think this amount reasonable because I do not use social media all that much but I would still like access to a variety of them. I would essentially therefore, be paying for my reduced time on the net.

Some might say that the companies might not make a profit if they charge $10 a month but I think they will because they make most of their money from ads so it would be good for them to offer the lowest subscription prices so that they can capture more people which will appeal to advertisers.

6 0
2 years ago
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