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2 years ago

3. What type of risk is relevant for determining the expected return?

Business

1 answer:

erma4kov [3.2K]2 years ago

8 0

Answer:

Systematic risk.

Explanation:

Systematic risk corresponds to the risk of the financial market as a whole. In other words, it is the risk that affects the economy and it is difficult to predict and prevent it from occurring. As an example, a risk of bankruptcy of financial institutions and banks can be mentioned.

This systemic risk therefore affects the expected return on an investment.

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If you fail to provide proof of insurance, your drivers license and license plates will be suspended for up to ______

kupik [55]

It will suspended up to 5 to 10 or years.

3 0

3 years ago

A step-wise variable cost can be separated into a fixed component and a variable component.a. Trueb. False

jeka94

Answer:

The correct answer is FALSE

7 0

2 years ago

2. A welder and a carpenter decided to get out of the construction industry and build farm trailers instead. From building a few

Firlakuza [10]

Answer:

Answer is explained in the explanation section below.

Explanation:

Data Given:

Material Cost Per Trailer = $500

Material Cost plus Profit Per Trailer (15%) = $500 + 75 = $575

Selling Price = $1000

Labor Cost Remaining Per Trailer = $425

Formula to Calculate the number of Trailers:

X = X1 ( $N^{S}$ )

Where,

N = number of Trailers

S = Slope Parameter

X = $425

X1 = $700

So, First we need to find the slope parameter, in order to calculate the number of trailers to be built.

S = $\frac{log \alpha }{log 2}$

where, α = 0.85 rate of improvement.

Plugging in the values into the formula, we get:

S = $\frac{log (0.85) }{log 2}$

S = -0.234

Now, we can easily find the number of trailers.

X = X1 ( $N^{S}$ )

Plugging in the values,

425 = 700 x ( $N^{-0.234}$ )

Solving For N, we get:

N = 8.4 Trailers

N = 9 Trailers.

Hence, 9 Trailers must be built in order to realize this rate of profit.

8 0

2 years ago

Determine whether each of the following events causes a shift of a curve or a movement along a curve in the short run. Indicate

Vaselesa [24]

Answer:

Check the explanation

Explanation:

Increase in value of dollar has made the foreign steel (a major commodity used in production) cheaper for American producers.

This will reduce the cost of production of American Producers and would increase their profit-margin.

This will induce US firms to produce more and therefore there will be increase in short-run aggregate supply.

So, the given scenario will involve short-run aggregate supply curve and would shift the curve to the right.

Kindly check the attached image below to see the required graph -

4 0

3 years ago

Askew Company uses a periodic inventory system. The June 30, 2018, year-end trial balance for the company contained the followin

Taya2010 [7]

Answer:

Askew Company

1. Cost of goods sold $243,000

2. Adjusting Journal Entries:

Debit Cost of Goods Sold $243,000

Debit Purchases discounts $7,000

Credit Freight-in $19,000

Credit Inventory $231,000

To record the cost of goods sold.

Explanation:

a) Data and Calculations:

Account Debit Credit

Merchandise inventory, 7/1/17 33,000

Sales 390,000

Sales returns 13,000

Purchases 250,000

Purchase discounts 7,000

Purchase returns 11,000

Freight-in 19,000

Merchandise inventory, 7/1/17 $33,000

Purchases 250,000

Purchase discounts (7,000)

Purchase returns (11,000)

Freight-in 19,000

Cost of goods available for sale $284,000

June 30, 2018, inventory balance $41,000

Cost of goods sold $243,000

Adjusting Entry:

Debit Cost of Goods Sold $243,000

Debit Purchases discounts $7,000

Credit Freight-in $19,000

Credit Inventory $231,000

To record the cost of goods sold.

3 0

3 years ago