Answer:
0.296875
Explanation:
Given the following :
Probability distribution of risky funds :
- - - - - - - - - - - - - - stock fund(S) - - bond fund(B)
Expected return - - - 15% - - - - - - - - - - 9%
Std - - - - - - - - - - - - - 32% - - - - - - - - - - 23%
Correlation between funds return = 0.15
Sure rate = 5.5%
To calculate the Sharpe ratio we use the formula :
Sharpe Ratio = (Expected Return of Investment - Risk Free Rate) / Standard Deviation of excess return of investment
For the stock fund :
Expected return = 15%
Risk free rate = market sure rate = 5.5%
Standard deviation = 32%
Sharpe ratio of stock fund :
(15% - 5.5%) / 32%
= 9.5% / 32%
= 0.296875
For Bond fund :
Expected return = 9%
Risk free rate = market sure rate = 5.5%
Standard deviation = 23%
Sharpe ratio of bond fund :
(9% - 5.5%) / 23%
= 3.5% / 23%
= 0.1521739
Therefore the Sharpe ratio of the best feasible CAL is the higher of the two ratios which is 0.296875
Answer:
Option d Cost of goods sold $620; Ending inventory $180 is the correct answer.
Explanation:
Under the periodic FIFO or First In First Out of inventory valuation, we calculate the value of inventory available for sale and at the end of the period we calculate the cost of goods sold by taking the first purchased inventories to be the ones that are sold first.
Thus, under the FIFO method, the cost of goods sold comprises of the cost of inventories that were purchased first and the cost of ending inventory comprises of the cost of most recently purchased inventories.
Jan 1 Beginning Inventory ( 140 * 4) = 560
June 2 Purchase (80 * 3) = <u> 240</u>
Cost of goods available for sale = 800
On November 5, 160 units are sold. Out of these 160 units, under FIFO, 140 units are from the beginning inventory and the remaining 20 units from June purchases.
So, Cost of goods sold is,
COGS = 140 * 4 + 20 * 3
COGS = 620
Ending inventory = 800 - 620 = 180
NN is more elastic between points A and D than curve MM is between points A and C. True.
Between points A and D, curve NN is inelastic. True.
Between points A and E, curve OO is perfectly elastic. True.
<u>Explanation:</u>
In Economics, elasticity is the estimation of the relative difference in a monetary variable because of an adjustment in another. It shows how simple it is for the provider and buyer to change their conduct and substitute another great, the quality of a motivating force over decisions per the relative open door cost.
Elasticity of demanded quantifies how the measure of good changes when its cost goes up or down. Flexibility is a proportion of the affectability of factors to a modification in another variable.
Answer:
Find attached amortization schedule for the interest expense and discount amortization under both methods.
Explanation:
Under straight line the discount amortization per year is total discount on bonds payable divided by 5 years.
Under effective method, I first of all computed the yield to maturity on the bind using rate formula in excel, the discount amortization each is the interest expense minus the coupon payment.
Agriculture:
- farms
- biotechnology ( now)
- food ( wheat,grain)