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Gala2k [10]
3 years ago
8

A portfolio has 45 percent of its funds invested in Security One and 55 percent invested in Security Two. Security One has a sta

ndard deviation of 6 percent. Security Two has a standard deviation of 12 percent. The securities have a coefficient of correlation of .62. What is the portfolio variance reddit
Business
1 answer:
laiz [17]3 years ago
6 0
I need help on the same thing
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A company purchased a building for $850,000 on January 1, 2010. As of December 31, 2014, $200,000 of accumulated depreciation ha
AVprozaik [17]

Answer:

On the sale of this building, the company should recognize:_______

c. A gain of $600,000

Explanation:

a) Data and Calculations:

The cost for the Purchase of building on January 1, 2010 = $850,000

Accumulated depreciation as of December 31, 2014 =           200,000

Book value of building as of December 31, 2014 =               $650,000

Sale proceeds on January 1, 2015 =                                    $1,250,000

Gain from the sale of the building =                                      $600,000

3 0
3 years ago
Stock A has a beta of 0.7, whereas Stock B has a beta of 1.3. Portfolio P has 50% invested in both A and B. Which of the followi
tresset_1 [31]

Answer:

The question is incomplete;

a. The required return on Portfolio P would increase by 1%.

b. The required return on both stocks would increase by 1%.

c. The required return on Portfolio P would remain unchanged.

d. The required return on Stock A would increase by more than 1%, while the return on Stock B would increase by less than 1%.

e. The required return for Stock A would fall, but the required return for Stock B would increase.

The answer is a. The required return on Portfolio P would increase by 1%.

Explanation:

6 0
4 years ago
Firms may invest in fewer projects as a result of A. an increase in interest rates that increase economic growth. B. an increase
kupik [55]

Answer: B. an increase in interest rates that decrease economic growth.

Explanation:

If interest rates were to rise in an Economy, that would mean that the cost of borrowing just rose. The rise in the Cost of Borrowing reduces consumer spending as well as business investment. This will therefore lead to a lower Aggregate demand. A lower AD in the Economy usually leads to a decrease in economic growth.

Now, if such things were to happen, a firm may definitely invest in fewer projects because first off it will be more expensive for them to borrow and invest because of the high rates. They will also be discouraged because of the Decrease in economic growth as the chances of their projects doing well will be drop in a depreciating economy.

7 0
3 years ago
You receive a part time job in which you are paid $10 per hour on weekdays and you receive $12 per hour
pantera1 [17]

Answer:

192.1

Explanation:

From monday and friday you earned 130$ because 6(10)+7(10)=130

Saturday you earned 96$ (12x8)

so adding those values you have 226$

you have to subtract 15% for tax.

So the equation would be

226 \times .15  = 33.9 \\ 226 - 33.9 = 192.1

4 0
2 years ago
Department E had 4,000 units in Work in Process that were 40% completed at the beginning of the period at a cost of $12,500. Dur
lubasha [3.4K]

Answer:

a. 15,650

Explanation:

Department E

FIFO Equivalent Units

Particulars           Units               % of Completion            Equivalent Units

                                        Materials   Conversion     Materials  Conversion

Units Complete   15000         100           100               15000        15000

Add Ending Inv    3000            100           70                3000         2250

less

<u>Beginning Inv.  4000       100                40                4000         1600</u>

<u>Equivalent Units                                                         14000         15650</u>

<u />

<em>The equivalent units for materials using FIFO are 14000 and for conversion are 15650.</em>

<em></em>

<em>In FIFO we add the completed units with the % of complete units in the ending inventory and subtract the beginning Work in Process Opening Inventory % complete units. </em>

<em>We need to calculate the units first transferred out.</em>

8 0
3 years ago
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