Answer:
Profits and losses play an important role in helping direct businesses toward productive projects and away from ones that are productive.
Explanation:
That is the essence of accounting and finance monitoring that the efforts that the company is carrying out are compensating with the corresponding profits; If this is not the case, we make corrections or start new projects. Knowing profits and losses, we can know if a business is viable or not.
Answer:
For correlation 1 the standard deviation of portfolio is 0.433.
For correlation 0 the standard deviation of portfolio is 0.3191.
For correlation -1 the standard deviation of portfolio is 0.127.
Explanation:
The standard deviation of a portfolio is computed using the formula:

(1)
For <em>r</em> = + 1 compute the standard deviation of portfolio as follows:

Thus, for correlation 1 the standard deviation of portfolio is 0.433.
(2)
For <em>r</em> = 0 compute the standard deviation of portfolio as follows:

Thus, for correlation 0 the standard deviation of portfolio is 0.3191.
(3)
For <em>r</em> = -1 compute the standard deviation of portfolio as follows:

Thus, for correlation -1 the standard deviation of portfolio is 0.127.
Answer:
b. No, the return is less than the required rate of 9%
Explanation:
Projected sale = 100000
Projected exp = 86000
Profit = 14000
Assets= 200000
Return on assets = 14000/200000 = 7%
Expected return = 9%
Hence, project should not be taken
Answer:
Explanation:
Long-term Investment cost = $25
Long-term Investment sales value = $54
Gain from Long-term Investment = $(54-25) = $29
Land cost = $53
Land sales value = $28
Loss from sale of Land = $(28-53) = -$25
Cash Dividend paid = $22
Total change in Assets = $(29-25) = $4
Total change in Equity = -$22
Answer:
3) Corporations use acquisition as a substitute for innovation.
Explanation:
The fastest way in which a corporation can enter a new market or develop new products is through buying existing companies that already operate in the new target markets or have developed the new products that the corporation wishes to sell.
Research and development is very costly and time consuming, and on many occasions the results aren't even good or are not as good as expected. By acquiring a smaller company that has already developed the product, then the corporation might even save money.