Answer:
Ans 1)
As Average Annual return increases from Combination A to E we can observe that Standard deviation also increases from A to E
Therefore it is clear that there is positive relationship between the Risk of Caroline's portfolio and the average annual return.
Ans 2)
IF Caroline needs to reduce the risk associated with portfolio combination D from 15 to 5 then he can do 2 things such that he should sell some portion of portfolio invested into stocks and ultimately accept lower returns because as we see in Part 1) answer risk and returns are positively correlated.
Option 2) and Option 3) are correct
Ans 3)
95% confidence interval gives us range of -2*SD, 2*SD
therefore range of return for given scenario with portfolio return equals to 3.5% and SD=5%
(Mean- z value*SD , Mean value*SD)=
(3.5%-2*5% , 3.5%+2*5%)=(-6.5%,13.5%)
Gain of 13.5% and Loss of -6.5%
Answer:
The order results in an incremental net income of $69,278 therefore accept
Explanation:
Consider the Incremental Costs and Revenues arising from this decision.
Since Maize has sufficient excess operating capacity, fixed costs are irrelevant for this decision.
Sales (6,400 units ×$31.76) 203,264
Variable Costs (6,400 units ×$19.94) (127,616)
Logo and Shipping Costs (6,400 units ×$1.00) (6,400)
Net Income 69,248
The order results in an incremental net income of $69,278 therefore accept
Answer:
Balance sheet:
Accounts Payable
-Liability
Property, Plant. and Equipment
-Asset
Long-Term Debt-Liability
Retained Earnings-equity account
Prepaid Expense
-Asset
Common Stock
-equity account
Accounts Receivable-Asset
Income statement:
Cost of Goods Sold-expense
Research and Development-expense
Explanation:
Property, plant and equipment , accounts receivable and prepaid expenses would appear on the asset side of the balance sheet.
Long-term debt and accounts payable are both liabilities since they are obligations owed to third parties while retained earnings and common stock are both equity account
Lastly,cost of goods sold and research and development cost are expenses in the income statement
<span>Outsourcing workforce analysis. Outsourcing has the potential of saving a company a significant amount of money on labour costs. By utilizing labour in countries with less stringent minimum wage and work hours laws, a company can increase output while decreasing labour costs.</span>
<span>Generally, man wants to engage in feasible business or investment that will bring profits or benefits. Because of this, before engaging in the business or purchasing of a product, he usually weights the costs and the benefits that will be derived. If the benefits are higher than the costs, he will usually be ready to engage in the business or buy the product, but if the reverse is the case, he will see no reason for engaging in such a business.</span><span />
