Answer:
Portfolio return = 0.1004646154 or 10.04646154% rounded off to 10.05%
Option B is the correct answer
Explanation:
The expected return of a portfolio is the function of the weighted average of the individual stock returns that form up the portfolio. The formula to calculate the expected return of a two stock portfolio is as follows,
Portfolio return = wA * rA + wB * rB
Where,
- w is the weight of each stock
- r is the rate of return on each stock
As the investment in total portfolio is 97500 and the investment in stock A is 84650, the investment in stock B will be,
Stock B = 97500 - 84650 = 12850
Portfolio Return = 84650 / 97500 * 0.106 + 12850 / 97500 * 0.064
Portfolio return = 0.1004646154 or 10.04646154% rounded off to 10.05%
Answer:
C) By lowering the price of the flower arrangements to increase demand.
Explanation:
According to the law of demand, the lower the prices, the higher the quantity demanded and the higher the price ,the lower the quantity demanded.
When prices are reduced, demand increases, revenue increases and net profit increases.
I hope my answer helps you.
Answer:
there is a low chance of reservice
Explanation:
Answer:
The amount of net income reported in 2020 income statement would be $75,000.
Explanation:
Pretax accounting income for 2020 = $100,000
Income tax expense for 2020 = Current tax + Reversal of Deferred tax assets
= ($100,000 - $100,000)*25% + ($100,000*25%)
= $25,000
Amount of net income reported in 2020 income statement = Pretax accounting income - Income tax expense
= $100,000 - $25,000
= $75,000
Therefore, The amount of net income reported in 2020 income statement would be $75,000.
