Which of the following is true of both paying with a check and paying with a debit card?

What is the var of a 10 million portfolio with normally distributed returns at the 5% VaR? Assume the expected return is 13% and

Kitty [74]

Answer and Explanation:

The computation is shown below:

1. VaR = Expected return - z × Standard deviation

= 13% - 1.645 × 20%

= -19.90%

Therefore the option a is the correct answer.

2) Now the correlation coefficient is

Variance of the portfolio = (weight of A × Standard deviation 1)^2 + (weight of B × Standard deviation 2)^2 + (2 × weight of A × weight of B × Standard deviation 1 × Standard deviation 2 × correlation 1 and 2)

3.80% = (60% × 24%)^2 + (40% × 18%)^2 + (2 × 60% × 40% × 24% × 18% × correlation 1 and 2)

So the correlation is 0.583

8 0

3 years ago

Food For Less (FFL), a grocery store, is considering offering one hour photo developing in their store. The firm expects that sa

Sunny_sXe [5.5K]

Answer:

a. and. d

Explanation:

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8 0

2 years ago

Read 2 more answers

A process costing system is employed in those situations where: Group of answer choices full or absorption cost approach is not

anygoal [31]

Answer:

where manufacturing involves a single, homogeneous product that flows evenly through the production process on a continuous basis.

Explanation:

Process costing can be regarded as accounting methodology which helps in tracing and accumulation of direct costs, s well s allocation of indirect costs of a manufacturing process. In this method, Costs are been assigned to products, and this is usually in a large batch, and could encompass an entire month's production.

It should be noted that process costing system is employed in those situations where where manufacturing involves a single, homogeneous product that flows evenly through the production process on a continuous basis.

7 0

2 years ago

For the last two months thomas has been worried that something bad is going to happen. he can't pinpoint the source of this feel

yan [13]

Thomas may be suffering from generalised anxiety as far as the situation describes. Generalised anxiety disorder is defined as the excessive worrying of an aspect of life for a reason that is vague. They worry too much may it could either be family, studying, or even their health.

5 0

3 years ago

Cotrone Beverages makes energy drinks in three flavors: Original, Strawberry, and Orange. Company is currently operating at 75 p

irina [24]

Relevant Information:

The relevant information is as under:

Segmented income statements appear as follows:

Product Original Strawberry Orange

Sales 65,200 85,600 102,400

Variable costs (44,000) (77,200) (80,200)

Contribution margin 21,200 8,400 22,200

Fixed costs allocated (9,400) (12,000) (14,200)

Operating profit (loss) 11,800 (3,600) 8,000

Answer:

The product not be closed because it is generating net cash flows of ($3,060), which will generate loss for the organization. The better option would be to not abandoning the manufacturing of Strawberry.

Explanation:

Relevant costing says that any savings or losses are relevant if it satisfy following three conditions:

Is a cash flow.
Future related (Not arising due to Past bindings).
Differential or Incremental in nature.

Its crystal clear that any inflows and outflows that are considered would be cash in nature, not related to past events it must be arising as a consequence of taking the decision whose consequences are we considering now, I mean it must arise in future due to the decision made which are considering. The last condition is the concept of differential that lies in the heart of relevant costing and is easily understood by following the following steps:

Step 1: What are the losses or savings if we don't make decision?

Step 2: What are the losses or savings if we make the decision?

Step 3: The difference between step one and two is differential or incremental cost.

Here we learned that relevant cost arises if we take the decision (closing manufacturing of Strawberry), and it doesn't arises if we don't take the decision (not abandoning manufacturing of Strawberry).

Relevant costs associated with the decision are as under:

Step 1 Step 2 Step 3

Make Decision If we Don't Differential

Revenue loss (85,600) - (85,600)

Variable Costs Savings 77,200 - 77,200

Fixed costs Savings (W1) 5340 - 5340

Operating Profit (3,060)

Working1: Fixed costs Savings

Total Fixed costs =21400+12000+14200 = $35,600

The saving is 15% of the total fixed cost and is as under:

Fixed costs Savings = $35,600 * 15% = $5340

Note:

Kindly also practice the following question:

brainly.com/question/14423321

8 0

3 years ago