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LekaFEV [45]
3 years ago
10

Consider the following information: Rate of Return If State Occurs State of Probability of Economy State of Economy Stock A Stoc

k B Stock C Boom .58 .08 .17 .37 Bust .42 .14 .06 −.04 a. What is the expected return on an equally weighted portfolio of these three stocks? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the variance of a portfolio invested 20 percent each in A and B and 60 percent in C? (Do not round intermediate calculations and round your answer to 6 decimal places, e.g., .161616.)

Business
1 answer:
kicyunya [14]3 years ago
7 0

Answer:

a) The expected return of equally weighed portfolio is 14.23%

b) The expected return of equally weighed portfolio is 16.45%, hence Variance = 1.596457%

Explanation:

See workings of a and b attached in a form of spreadsheet.

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Consider the following marginal cost function. a. Find the additional cost incurred in dollars when production is increased from
weqwewe [10]

Answer:   (a) $197,500

(b) $ 189,500

Explanation:

Given : The marginal cost function : C′​(x)=4000−0.4x

To find the cost function, we need to integrate the above function with respect to x.

Now, the additional cost incurred in dollars when production is increased from 100 units to 150 units will be:-

\int^{150}_{100}\ C'(x)\ dx\\\\=\int^{150}_{100} (4000-0.4x)\ dx\\\\=[4000x-\dfrac{0.4x^2}{2}]^{150}_{100}\\\\=[4000(150)-\dfrac{0.4(150)^2}{2}-4000(100)+\dfrac{0.4(100)^2}{2}]\\\\=[600000-4500-400000+2000]\\\\=197500

Hence, the additional cost incurred in dollars when production is increased from 100 units to 150 units= $197,500

Similarly,  the additional cost incurred in dollars when production is increased from 500 units to 550 units :-

\int^{550}_{500}\ C'(x)\ dx\\\\=\int^{550}_{500} (4000-0.4x)\ dx\\\\=[4000x-\dfrac{0.4x^2}{2}]^{550}_{500}\\\\=[4000(550)-\dfrac{0.4(550)^2}{2}-4000(500)+\dfrac{0.4(500)^2}{2}]\\\\=[2200000-60500-2000000+50000]\\\\=189,500

Hence, the additional cost incurred in dollars when production is increased from 500 units to 550 units = $ 189,500

4 0
3 years ago
During 2017, Oriole Company expected Job no. 59 to cost $300000 of overhead, $560000 of materials, and $200000 in labor. Oriole
Readme [11.4K]

Answer:

$165,000

Explanation:

The computation of the amount of over- or underapplied overhead is shown below:

The Predetermined overhead rate is

= Predetermined overhead ÷ direct labor cost

= ($300,000 ÷ $200,000)

= 150% of direct labour cost

Now  

overhead applied is

= (150% × $280,000)

= $420,000

And,  

Actual overhead=$255,000

So,  

overhead overapplied is

= $420,000 - $255,000

= $165,000

5 0
3 years ago
In its first year of operations, Bronfren Corporation produced 800,000 sets and sold 780,000 sets of artificial tan lines. What
zaharov [31]

Answer:

D)

Explanation:

No effect decrease

4 0
4 years ago
Congratulating a coworker on an anniversary would be an example of _____.
Yanka [14]

Answer: the correct answer is D. promoting general friendliness

Explanation:

To promote friendliness at work is an awesome idea because it will contribute to attaining the goals of a company since it makes the organization a better place for everyone.

6 0
3 years ago
Read 2 more answers
Bryant Co. has $2.7 million of debt, $1 million of preferred stock, and $2.1 million of common equity. What would be its weight
Lelu [443]

Answer:

0.172

Explanation:

The computation of the weight on the preferred stock is shown below:

Weight on preferred stock is

= Preferred stock ÷(Debt + preferred stock + common equity)

= $1 million ÷ ($2.7 million + $1 million + $2.1 million)

= $1 million ÷ $5.8 million

= 0.172

By applying the above formula we can easily determine the weight on preferred stock

6 0
3 years ago
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