Answer:
B. Class tensions will lead to the end of market economies.
Explanation:
According to the Marxists theory, the tension between the capitalist and the working class gives birth to the class conflict in the society. It is tension that is created as the result of the exploitation and conflict between the two. This conflict further would initiate a revolution among the working class that would turn the capitalist class upside down. The exploitation faced by the working class by the capitalists is the major force that would turn them to be rebellious.
Answer:
A. 1 and 4 are true
Explanation:
Statement 1: When inflation goes up the market prices of goods increase and reduces buying power of customer. So, if you get $100 even after 5% inflation, you would get $95 worth good.
Statement 2: It is commonly known as, the higher the risk the higher the gain. So, risk premium and risk exhibited by security is directly related with each other.
Statement 3: Since, risk free rate is the compensation for time value of money, that is why it can’t make real risk-free rate negative because real risk rate is there, but inflation can go higher than risk free rate.
Statement 4: Maturity payment is paid to investors or savers after certain period of time along with principal amount.
Hence, A. 1 and 4 are true
Answer:
- a. What is the portfolio weight of each stock?
Stock J 0,5047
Stock K 0,4953
- b. What is the expected return of your portfolio?
Stock J 6,69%
Stock K 5,25%
Portfolio : 11,94%
Explanation:
To find the Beta that equals to market we need to know how much is x (weight of each stock in the portfolio) with an equation of one variable that equals to 1.
Portoflio with the same risk as the market means a beta of 1,00
1,23 (x) + 0,84 (1-x) = 1 Stock J = 0,4103
1,23x + 0,84 - 0,84x = 1 Stock K = 0,5897
1,23x - 0,84x = 0,16
0,39x = 0,16
x = 0,16/0,39
x = 0,4103
The expected return of the portfolio it's defined by the weight of each stock and the expected return.
Stock J 13,25% 0,5047 6,69%
Stock K 10,60% 0,4953 5,25%
Portfolio 1,00 11,94%
Answer: $3,672,500
Explanation:
Based on the information given in the question, the debit to cash in the journal entry to record this transaction will be:
= $3,250,000 - ($3,250,000 × 4%) + ($3,250,000 × 9%)
= $3,250,000 - $130,000 + $292,500
= $3,672,500
Therefore, the debit to cash will be $3,672,500.
Answer:
$33.33
Explanation:
The computation of the predetermined overhead rate is shown below: In this question, we have to apply the formula that is presented below:
Predetermined overhead rate = (Total estimated overhead) ÷ (estimated direct labor-hours)
= $2,500,000 ÷ 75,000 direct labors hours
= $33.33
Simply we divide the anticipates total overhead by the anticipated direct labor hours
