Answer:
1) Expected return is 12.12%
2) Portfolio beta is 1.2932
Explanation:
1)
The expected return can be calculated by multiplying the return in a particular state of economy by the probability of that state occuring.
The expected return = (0.32 * -0.11) + 0.68 * 0.23
Expected return = 0.1212 or 12.12%
b)
The portfolio beta is the the systematic riskiness of the portfolio that is unavoidable. The portfolio beta is the weighted average of the individual stock betas that form up the portfolio.
Thus the portfolio beta will be,
Portfolio beta = 0.33 * 1.02 + 0.2 * 1.08 + 0.37 * 1.48 + 0.1 * 1.93
Portfolio beta = 1.2932
Answer:
The amount of revenue to be recognized at 31st March is $383500
Explanation:
The revenue amount that should be recognized in the income statement as at March 31,2020 is the sales price of $365000 plus three months of installation fee since installation is expected to last six months and three months have passed since installation began.
Hence, the amount of revenue as at 31st March is calculated thus:
Sales price $365000
Installation fee for 3 months(3/6*$37000) <u>$18500</u>
Total revenue as at 31st March $ 383,500
The rationale behind this is that revenue is only recognized when the seller has discharged his or her obligation under the contract not when cash is received and it is very clear that installation has been undertaken for 3 out of 6 months
I think the labor market is the nominal market in which workers find paying work, employers find willing workers, and wage rates are determined.
Answer:
A. $70,000
Explanation:
From the information given, we discover that
Gross profit from sporting goods business = $100,000
Subtract: other Expenses = 11500
Subtract: Building depreciation expenses (10000 × 55%) = 5500
Subtract: Mortgage Interest (10000 × 55%) = 5500
Subtract: Depreciation on vehicle used for business = 3000
Less: Utilities for Ground Floor = 4500
Net Self employment Income = $70,000
Note that 55% is used for ground floor, it is calculated as 100 - 45% used by tenant, therefore, for business purpose 55% will be taken.
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