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inn [45]
3 years ago
7

Diversification is most effective when security returns are _________. a. high b. negatively correlated c. positively correlated

d. uncorrelated
Business
1 answer:
Y_Kistochka [10]3 years ago
3 0

Answer: Option B  

                       

Explanation: In simple words, diversification refers to the process of allocating capital in different investments to reduce the overall risk of the investment portfolio.

Therefore, analyst tries to make portfolio in such a way that securities will be negatively correlated. If two securities are negatively correlated then the decrease of one will lead to proportionate increase of others.

This ensures that the investors money will not be depreciated but at the same time the potential for abnormal returns also decreases.

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The following data from the just completed year are taken from the accounting records of Mason Company: Sales $ 524,000 Direct l
Katyanochek1 [597]

Answer:

Cost of Goods Available Sold $ 265,000

Adjusted Cost of Goods Sold  $ 255,000

<u>Net Income             $ 66,000    </u>

Explanation:

<u><em> Mason Company: </em></u>

<u><em>Cost Of Goods Schedule</em></u>

Inventories Beginning Raw materials $ 7,000

Raw material purchases $ 118,000

Inventories  Ending Raw materials  $ 15,000

Direct Materials Used $ 110,000

Direct labor cost $ 70,000

Manufacturing overhead applied to work in process $ 90,000

Total Manufacturing Costs $ 270,000

Add Work in process  Inventories Beginning  $ 10,000

Cost of Goods Available For Manufacture  $ 280,000

Less Work in process Inventories Ending $ 5,000

Cost of Goods  Manufactured $ 275,000

Add Finished goods  Inventories Beginning $ 20,000

Cost of Goods Available For Sale $ 295,000

Less Finished goods  Inventories Ending  $ 35,000

Cost of Goods Available Sold $ 265,000

<u>Mason Company: </u>

<u>Cost Of Goods Schedule Adjusted </u>

Inventories Beginning Raw materials $ 7,000

Raw material purchases $ 118,000

Inventories  Ending Raw materials  $ 15,000

Direct Materials Used $ 110,000

Direct labor cost $ 70,000

Manufacturing overhead applied to work in process $ 90,000

Total Manufacturing Costs $ 270,000

Add Work in process  Inventories Beginning  $ 10,000

Cost of Goods Available For Manufacture  $ 280,000

Less Work in process Inventories Ending $ 5,000

Cost of Goods  Manufactured $ 275,000

Add Finished goods  Inventories Beginning $ 20,000

Cost of Goods Available For Sale $ 295,000

Less Finished goods  Inventories Ending  $ 35,000

Cost of Goods Available Sold $ 265,000

Less Over Applied Overhead  $ 10,000

Adjusted Cost of Goods Sold  $ 255,000

Over applied overhead is deducted to get the actual Cost of Goods Sold.

<em><u>Mason Company: </u></em>

<em><u>Income Statement</u></em>

Sales $ 524,000

Less

Adjusted Cost of Goods Sold  $ 255,000

Gross Profit        $ 269,000

Less Selling expenses $ 140,000

Administrative expenses $ 63,000

<u>Net Income             $ 66,000      </u>    

5 0
3 years ago
Jane, the CEO of Noble Inc. regularly interacts with her employees to give them all the necessary details about the company goal
Olin [163]

In the scenario, Jane is performing the managerial role of a <u>Disseminator.</u>

<u>Explanation:</u>

3 0
3 years ago
Sales $ 2,000,000 100 % $ 500,000 100 % $ 2,500,000 100 % Variable expenses 800,000 40 % 250,000 50 % 1,050,000 42 % Contributio
Sonja [21]

Answer:

$1.5 million

Explanation:

The computation of break even sales in dollars is shown below:

= (Fixed expenses) ÷ (profit volume ratio)

where,  

Contribution margin  = Sales  - Variable expense

= $2,500,000 - 1,050,000

= $1,450,000

And, Profit volume ratio = (Contribution) ÷ (sales) × 100

So, the Profit volume ratio = ($1,450,000) ÷ ( $2,500,000) × 100 = 58%

And, the fixed expenses is $870,000  

Now put these values to the above formula  

So, the value would equal to  

= ($870,000) ÷ (58%)  

= $1.5 million

3 0
3 years ago
Explain why it might be difficult for a new,
statuscvo [17]

Answer:

The Threat of New Entrants exerts a significant influence on the ability of current companies to generate a profit Gross Profit Gross profit is the direct profit left over after deducting the cost of goods sold, or cost of sales, from sales revenue. It's used to calculate the gross profit margin

Explanation:

3 0
3 years ago
How do long term goals differ from short term goals
Lyrx [107]

Short term goals are anywhere from one week, to less then one year to complete. Long term goals are something that takes you a year or more to complete

5 0
3 years ago
Read 2 more answers
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