Answer:
Recognized gain = $60000
Explanation:
Below is the calculation:
Price of personal resident = $400000
Selling price = $460000
Since Alan purchased the house for $400000 and selling it for $460000. Therefore recognized gain can be determined by subtracting the purchase price from the selling price.
Recognized gain = $460000 - $400000
Recognized gain = $60000
Answer:
$7,000 Unfavorable
Explanation:
data provided
Material in units = 18,000
Price per unit = 2
Actual hours = 38,000
Selling price = $3.50
The computation of material efficiency variance is shown below:-
Materials efficiency variance = (Standard hours - Actual hours) × Selling price
= (18,000 × 2 - 38,000) × $3.50
= $7,000 Unfavorable
Therefore for computing the material efficiency variance we simply applied the above formula.
Answer:
The client is insolvent since the client's liabilities exceed the fair market value of the client's assets by $20,000
Explanation:
Answer:
a. The portfolio weights that remove all risk is 50%
.
b. The risk-free rate of interest in this economy is 13.5%
Explanation:
The formula for standard deviation of a portfolio, of which i cannot type:
a. If we let sigma p = std. deviation of portfolio
rho 1,2 = correlation
if sigma = 0 and rho = -1, then the first equation can be re-written as :
0 = w1^2 * s1^2 + w2^2 * s2^2 + 2 * w1 * w2 * s1 * s2 * -1
0 = (w1s1 - w2s2)^2
w1s1 = w2s2
w1 * 0.03 = w2 * 0.03
w1 = w2 = 50%
Therefore, The portfolio weights that remove all risk is 50%
.
b. Expected return of the portfolio = 0.5*20% + 0.5*7%
= 13.5%
This portfolio has zero risk, risk free rate = 13.5%
Therefore, The risk-free rate of interest in this economy is 13.5%
Merchandise with or with out money of course