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Travka [436]
3 years ago
15

You have a ​$106 comma 000 portfolio comprising 10 stocks. You trade each stock five times this year and each time you​ trade, y

ou pay about ​$29 in commissions and spread. You have no special​ knowledge, so you earn only the average market return of 14​% on your investments. How much lower will your total return be because of your​ trades?
Business
1 answer:
miv72 [106K]3 years ago
8 0

Answer:

My return will be 1.37% lower.

Explanation:

Total expenditure:

= Number of stocks×Number of times×Commission and spread per trade

= 10×5×$29

= $1,450

In % form:

= $1,450/$106,000

= 1.37%

My return will be 1.37% lower.

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What is the total sales-mix variance in terms of the contribution margin?
Karo-lina-s [1.5K]

The total sales-mix variance in terms of the contribution margin is $2,60,000 favorable.

The contribution margin is computed because of the promoting charge per unit, minus the variable fee per unit. Also called dollar contribution consistent with the unit, the degree shows how a particular product contributes to the overall earnings of the company.

Contribution margin, or dollar contribution consistent with the unit, is the promoting charge according to the unit minus the variable value in keeping with the unit. "Contribution" represents the part of income revenue that is not fed on with the aid of variable expenses and so contributes to the insurance of fixed expenses.

The closer a contribution margin percent, or ratio, is to a hundred%, the higher. The higher the ratio, the extra cash is available to cover the enterprise's overhead costs or fixed costs. However, it is much more likely that the contribution margin ratio is properly under 100%, and in all likelihood beneath 50%.

Learn more about contribution margin here brainly.com/question/24039258

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3 0
1 year ago
Roma and Swain are partners in Roma & Swain Attorneys, LLP, a limited liability partnership. Roma supervises their firm's as
meriva

Answer:

b. Roma and Taylor

Explanation:

In this case each attorney is liable for his negligence, so Taylor will be liable for not appearing in court .

Roma is his supervisor, and he will also be liable because he is responsible for Taylor's performance.

The other attorneys in the firm will not be liable, because there is personal liability. When they are not directly involved in negligence, they will not be liable to Umberto.

4 0
3 years ago
Consider a hypothetical economy in which the marginal propensity to consume (MPC) is 0.50. That is, if disposable income increas
evablogger [386]

Answer:

The level of saving =  $450 billion - $400 billion= $50 billion

Marginal propensity to save = 1- marginal propensity to consume (MPC)=0.5

Expected consumption

MPC=  change in Consumption/ change in income 200 billion * 0.5 = $100billion

Therefore consumption = 100 billion + 400 billion = $500 billion

Saving = $650 billion - $500 billion=  $ 150 billion

Explanation:

4 0
3 years ago
If the market risk premium increased to 6%, what would happen to the stock's required rate of return
Inessa [10]

Answer:

13%

Explanation:

As per the situation the solution of required rate of return first we need to find out the beta which is shown below:-

Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)

11% = 7% + Beta × 6%

Beta = 1

now If the market risk premium increased to 6% so,

The required rate of return = 7% + 1 × 6%

= 13%

Therefore for computing the required rate of return we simply applied the above formula.

7 0
2 years ago
The following data are for the Akron Division of Consolidated Rubber, Inc.: Sales $ 820,000 Net operating income $ 59,000 Averag
VladimirAG [237]

Answer:

11.56%

Explanation:

The computation of the minimum required rate of return is shown below:

Residual income = Net operating income - (Average operating assets × minimum required rate of return)

$22,000 = $59,000 - ($320,000 × minimum required rate of return)

After solving this the minimum required rate of return is 11.56%

By applying the above formula we can find out the minimum required rate of return

7 0
2 years ago
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