Answer and Explanation:
Given:
For portfolio A
Expected return of 12%
beta = 0.5
Risk premium for A = ?
For portfolio B
Expected return of 13%
beta = 0.4
Risk premium for B = ?
Risk-free rate of return = 5%
Computation:
For portfolio A
12% = 5% + (0.5 × risk premium for A)
risk premium for A = 14%
For portfolio B
13% = 5% + (0.4 × risk premium for B)
risk premium for B = 20%
short position "A"
Long position "B"
Answer:
To maximize revenue based on current capacity, The Stadium Manager should set Premium Price for tickets.
Explanation:
If your aim is to maximize revenue based on the capacity of the stadium, Premium Price is your surest best.
Premium pricing is a type of pricing which involves establishing a price higher than your competitors to achieve a premium positioning.
You will attract the right kind of customers and when you set a premium price, you have raised the bar of expectation from your customers.
This will push the stadium to upgrade their customer service, their operations and delivery.
If this method is carried out properly by establishing club memberships and other marketing incentives, you will retain these premium customers and maximize revenue.
Answer:The meeting will fall under the FOURTH PHASEie STRATEGIC EVALUATATION of the planning process
Explanation:
The fourth phase of planning is the Strategy Evaluation which involves Buisness taking a concise time to monitor an already working proposed plan and adjust the process as nessesary.
Buisnesses like P and L can address an already working procedure to analyse what is working or what is not by organisaing, monitoring , getting feedback and measuring performance of the work done by the earlier proposed plan. This on the long run leads to establishment of best practices and help to correct future processes and plans.
Answer:
At the end of period the allowance for uncollectible debts will be: 15000-3000 = $ 12000 because 3000 account receivable is written off.
Explanation:
(Opening) Allowance for uncollectible accounts = 3000 (Dr)
During the year company estimates = $ 15000
Entry : Dr Bad debts expense 15000
Cr Allowance for bad debts 15000
( To record uncollectible accounts)
Answer:
Collection from Customers =$487,000
Explanation:
Collection from Customers=account receivable beginning balance+sales revenue-account receivable ending balance
=97000+$519,000-$65,000
=$487,000
