Answer:
As a risk minimizer : Stock A has the lowest standard deviation, thus, it should be chosen, if it is to be held in isolation . Also stock B has the lowest beta, thus,it should be chosen, if it is to be held as part of a well - diversified portfolio.
The answer is A and B respectively
Explanation:
The standalone risk or standard deviation of the stocks is alleviated for a well diversified investor . So, in that case, the relevant risk would be the market risk or the beta.
When you see in isolation, relevant risk would be the standard deviation.
Therefore, as a risk minimizer : Stock A has the lowest standard deviation, thus, it should be chosen, if it is to be held in isolation . Also stock B has the lowest beta, thus,it should be chosen, if it is to be held as part of a well - diversified portfolio.
The value of item is determined by its utility to the person who is purchasing it. If an item has high utility, then consumers are willing to pay more and will value the product more. If an item has low utility, it will not be very valuable to the person. People value items differently. the old saying that one's man's trash is another's treasure holds true here.
Answer:
Boyd will record Warranty Expense in the amount of $400 for the month.
Explanation:
Warraty expense is an obligation on the business because business idmliable to accept the claims of warranty. A estimated percentage of warranty expense is charges as an expense in each period.
Sales = $20,000
Warranty repair = 2% of Sales
Warranty Expnese = Sales x Warranty repairs percentage
Warranty Expnese = $20,000 x 2%
Warranty Expnese = $400
Answer: $2
Explanation:
From the question, we are informed that an investor purchases a stock for $38 and a put for $.50 with a strike price of $35 and that the investor sells a call for $.50 with a strike price of $40.
The maximum profit for this position will be the purchase price of the stock deducted from the strike price of call option. This will be:
= $40 - $38
= $2
Answer:
b) 2,388.22
Explanation:
Activity Cost Pool Activity Rates Activity Overhead cost
Processing customer 49.87 per order 10 498.7
orders
Assembling products 2.88 per assembly hour 580 1670.4
Setting up batches 18.26 per batch 12 <u> 219.12</u>
Total Overhead cost assigned <u>2,388.22</u>
