Answer: –0.0130
Explanation:
Correlation given the variance and the standard deviation of the two returns can be calculated by;
Correlation coefficient = Covariance of returns on investment A and B / (Standard deviation of return on investment A * Standard deviation of return on investment B).
Rearranging the formula, Covariance becomes;
Covariance of returns on investment A and B = Correlation coefficient * (Standard deviation of return on investment A * Standard deviation of return on investment B)
Covariance of returns on investment A and B = -0.260 * 0.25 * 0.20
Covariance of returns on investment A and B = –0.0130
Answer:
c. none of these
units started into the process this period plus units in beginning inventory
Explanation:
In FIFO , the physical units are divided between the beginning units, units started in process and the ending units. But as all the materials is added at the beginning of the process so the FIFO physical units would be divided between the units started into the process this period plus units in beginning inventory and hence the equivalent units for materials will be calculated.
So the best choice is option c.
Answer:
d. $197,418
Explanation:
Profitability index for this project = Present value of cash inflows / Present value of cash inflows
Profitability index for this project = 2.531*$78000 / $195000
Profitability index for this project = $197,418 / $195,000
Profitability index for this project = 1.0124
So, the net present value of this project is $197,418
The answer should be A. it’s the only one that would make sense
Answer:
C) amount a consumer is willing to pay minus the amount the consumer actually pays.
Explanation:
Consumer surplus is a situation in which a consumer is willing to pay more for a product but he/she actually pays less that is he pays a lesser price compared to what he is willing to pay.
For example, a consumer is willing to pay $5 for a magazine but when he got to the mall, the price of the magazine is $4. The consumer surplus will be price he is willing to pay minus the price he bought it.
Consumer surplus= $5-$4
=$1
Consumer surplus is the difference between between the willing price of a consumer and the actual price paid(lesser than the willing price). It is a benefit to the consumer because they pay less than what is expected at the same value of satisfaction.
Consumer surplus is represented on a supply and demand curve by the area between the equilibrium price and the demand curve.
