Answer:
The correct answer is option (A).
Explanation:
According to the scenario, the computation of the given data are as follows:
First, we will calculate the Market risk premium, then
Market risk premium = (Required return - Risk free rate ) ÷ beta
= ( 9.50% - 4.20%) ÷ 1.05 = 5.048%
So, now Required rate of return for new portfolio = Risk free rate + Beta of new portfolio × Market premium risk
Where, Beta of new portfolio = (10 ÷ 18.5) × 1.05 + (8.5 ÷ 18.5) × 0.65
= 0.5676 + 0.2986
= 0.8662
By putting the value, we get
Required rate of return = 4.20% + 0.8662 × 5.048%
= 8.57%
Alpha level is a probability value that is used to define the concept of "very unlikely" in a hypothesis. This value determines he boundaries for the critical region, which is composed of the extreme sample values that are very unlikely to be obtained if the null hypothesis is true. Type I error is <span>when a researcher rejects a true null hypothesis.</span>
The relationship between the alpha level, the size of the critical region, and the risk of a type i error is the following: when the alpha level increases, the critical region increases and type I error increases.
One of the main reasons that stocks do not reflect the health of the economy most of us experience is the rise of stock buybacks. Companies often push stocks higher, partly and arguably, to raise the value of the stock options of their management by buying them on the open market.
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Generally accepted government auditing standards define and describe three broad types of audits that may be performed: financial audits, attestation engagements and performance audits.
<h3>What is Government?</h3>
A government is refer as administrative body which helps in the proper functioning of the country by maintaining peace and order by implementing laws and legislation describe in the constitution.
Generally accepted government auditing standards are refers as measures or guidelines provided by the government to calculate the or check the accountability and performance.
Learn more about Government, here:
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Answer:
Kohl's Average total Assets were $1,000,000
Explanation:
1.
Asset Turnover = Net Sales / Average fixed Assets
Net Sales = Asset Turnover x Average fixed Assets
2.
Account Receivable Turnover = Net Sales / Average Account receivable
Net Sales = Account Receivable Turnover x Average Account receivable
According to given condition
Asset Turnover x Average fixed Assets = Account Receivable Turnover x Average Account receivable
2 X Average fixed Assets = 10 X $200,000
Average fixed Assets = $2000,000 / 2
Average fixed Assets = $1,000,000