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Anastasy [175]
3 years ago
14

The risk associated with a portfolio Multiple Choice grows exponentially with the number of stocks purchased. declines exponenti

ally as the number of stocks purchased increases and continues to decline until a point of zero risk is reached. decreases as the investor increases the number of stocks in her portfolio. increases as the investor increases the number of stocks in her portfolio.
Business
1 answer:
denis23 [38]3 years ago
7 0

Answer:

decreases as the investor increases the number of stocks in her portfolio.

Explanation:

In Business, a portfolio can be defined as a wide range of financial investments such as bonds, stocks, cash, commodity, real estate, cash equivalent, art etc that are being held by an individual or organization.

The risk associated with a portfolio decreases as the investor increases the number of stocks in her portfolio.

This ultimately implies that, as the number of assets being held by an individual or organization increases, the risk associated with such a portfolio decreases. Generally, this is referred to as diversification.

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After graduation, you face a choice. you can work for a multinational consulting firm and earn a starting salary (benefits inclu
Wittaler [7]

Answer: Accounting profit= $44,500

Economic Profit = $4,150

Explanation: <em>Accounting profit</em> are the profit earned by subtracting explicit cost from the total revenue earned.

Accounting profit = Revenue - Explicit cost

<em>Economic profit</em> are profits lefts out after subtracting implicit (opportunity) cost and explicit ( monetary) costs. It is given by

Economic profit = Revenue - Explicit cost - Implicit Cost

In this case, the explicit cost include rental cost, office supplies, office staff and telephone expenses.

While, implicit cost include the 7% interest foregone on the $5000 savings and the salary foregone ($40,000) by choosing to startup a business than take up the job.

3 0
3 years ago
An analyst with a national ratings agency is concerned about a firms ability to meet its short term obligations. To evaluate the
Semmy [17]

Answer:

a. Balance Sheet

Explanation:

The balance sheet reports the total assets, total liabilities and stockholder equity.  

The total asset is comprised of the current asset, fixed assets, and the intangible asset

The total liabilities comprise of current liabilities and long term liabilities

The aim to make the balance sheet is to analyze the liquidity, financial performance, position of the company

Whereas the cash flow statement shows the inflow and outflow of cash and the income statement records total revenues and total expenditures.  

8 0
3 years ago
Consider the following information for Maynor Company, which uses a periodic inventory system:
katrin [286]

Answer:

A. FIFO - 78 units and $7,770 and Cost of Goods Sold $12,738

B. LIFO - Inventory Valuation $7,312 and Cost of Goods Sold $13,196

C. Weighted Average - inventory Valuation $7,304 and Cost of Goods Sold $13,204

Explanation:

Detailed calculation as under:

<u>A. FIFO</u>

First 73 Units are sold from the inventory on May 1. Therefore, we first take the beginning inventory units and then we take the next in line purchases made during the period. In this case the first 34 units are completely taken and then out of the 44 units only 39 units are taken.

Next 68 units are sold from the inventory on October 28. Now we will take the remainder 5 units bought on March 28 (which are not yet sold). Then we take 63 units out of the 68 units purchased on August 22.

The company's ending inventory on FIFO Basis is remaining 5 units bought on 22 August and 73 units bought on 14 October. There total value is (5 x 94) + (73 x 100) = $7,770

Cost of Goods Sold = Total Goods Cost available for sale - Inventory ending valuation

$12,738 = $20,508 - $7,770

<u>B. LIFO</u>

First 73 Units are sold from the inventory on May 1. Therefore, we first take the units purchased on 28 March and then we take the beginning inventory. In this case the first 44 units are completely taken and then out of the 34 units only 29 units are taken.

Next 68 units are sold from the inventory on October 28. Now we will take the units bought on 14 October i.e. 68 units out of the 73 units bought.

The company's ending inventory on LIFO Basis is remaining 5 units in the beginning inventory, remaining 5 units bought on 14 October and 68 units bought on 22 August. There total value is (5 x 84) + (5 x 100) + (68 x 94) = &7,312

Cost of Goods Sold = Total Goods Cost available for sale - Inventory ending valuation

$13,196 = $20,508 - $7,312

<u>C. Weighted Average</u>

In order to calculate Weighted average cost method we divide the total cost of inventory (Beginning and Purchased) with the total units, this yields average cost per unit. Then we multiple the average cost per unit with the units remaining after sales. As shown below:

$20,508 / 219 = $93.64 per unit

$93.64 x 78 units = $7,304

8 0
3 years ago
At the beginning of the year, the balance in Allowance for Doubtful Accounts is a credit of $760. During the year, $120 of previ
Mekhanik [1.2K]

Answer:

=$140

Explanation:

At the beginning of the year, the account had a credit(positive balance of $760)

Previously bad debt that has been reinstated, $120

The new balance will be $760 + $120 = $860

adjusting for the written-off accounts

=$860 - $740

=$140

3 0
3 years ago
Eduardo has always wanted to operate his own fast food restaurant but he knows the high failure rate of restaurants. To increase
telo118 [61]

Answer:

buying a franchise of a well-established restaurant.

Explanation:

A franchise business model is a business arrangement where the owner or 'franchisor' sells the rights of a business to ' franchisee' who operates an independent outlet.  The rights that a franchisee acquires include business name, logo,  business and operating models.  Examples of known franchises are MacDonald,  subway, and Starbucks.

The biggest advantage Eduardo will gain by purchasing a franchise is that he will get instant access to a well-established brand name.  Eduardo does not need to spend resources on creating a name, or products to introduce to customers. An established franchise will provide him with customers,  a management model, and a chance to succeed.

4 0
3 years ago
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