Answer:
The standard deviation of the portfolio is 26.15%
Explanation:
First the formula of variance of a portfolio is used.
Take the square root of variance to get standard deviation.
(0.3)^2 × (0.35)^2 + (0.7)^2 × (0.3)^2 + 2 × 0.3 × 0.7 × 0.35 × 0.3 × 0.3 = 0.068355
Taking square root of 0.068355 to get standard deviation that is 26.15%
Answer:
False
Explanation:
Apart from simple interest, compound interest can be used for single payments
the formula for compound interest is : future value - present value
The formula for calculating future value:
FV = P (1 + r)^n
FV = Future value
P = Present value
R = interest rate
N = number of years
The formula for simple interest : amount x time x interest rate
Assume that 1000 is to be received in 2 years at the interest rate of 10%
Simple interest = 1000 x 2 x 0.1 = 200
Compound interest
1000 x (1.1)^2 = 1210
1210 = 1000 = 210
Answer:
False
Explanation:
A merger refers to a corporate agreement between two firms who come together combining assets and resources and working as a single identity to reap synergestic gains.
A vertical merger refers to a form of merger wherein the purpose is to provide supply chain functions with respect to a common product or service. Usually in a vertical merger, the company merges with it's immediate supplier i.e provider of raw materials so as to reduce costs and to improve efficiency.
In the given case, the company is considering merging with it's supplier of inputs so as to make required components available as well as to improve quality. This is a case of vertical merger.
Answer:
Total equivalent units 540 units
Explanation:
<em>Equivalent Units E.U)</em><em> are notional whole units which represent incomplete work and are used to apportion costs between between work in progress and completed work.</em>
<em>Under the weighted average method of valuation,</em><em> to account for completed units, it is assumed that the entire degree of work required is done in the period under consideration. So there is no separation of the completed units into opening inventory and fully worked.</em>
To compute the EU as follows:
Equivalent Units = Degree of completion (%) × units
Item unit Equivalent unit
Transferred out 500 (100%×500) = 500
Closing WIP 200 (20%× 200) = <u>40</u>
Total equivalent units <u> 540</u>
Answer:
Collection float
Explanation:
Collection float is defined as the time interval between check payment made into a bank and the time the payment is cleared and credited to the beneficiary.
It is also caused when check payment received are not yet deposited or checks posted by customer but it is not yet received.
It is a major factor of discrepancy between the bank statement and the cash book record .