Based on the selling price and the variable costs, the new contribution margin ratio would be<u> 35%.</u>
<h3>What would be the new contribution margin ratio?</h3>
First find the new contribution margin which is:
= Selling price - Variable cost
Solving gives:
= 200 - ( (60% x 200) + 10)
= 200 - (120 +10)
= $70
The contribution margin ratio will be:
= Contribution margin / Selling price
= 70/ 200
= 35%
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six billion three hundred ninety two million ninety four thousand three
The stockholders in this firm basically own a call option and the assets of the firm with a stake price of $50,000
Explanation:
The financial contract between the two parties and the options between the buyer and the seller and the buyer have the rights but not the obligation to buy any required product is called as the call in the stock market
The changes that affect the commodity price will be the the base asset price the volatility and the time decay the strike price is usually the starting price of the commodity
Answer:
Holding other factors constant, a stock portfolio has more volatility when its individual stock volatilities are high and its individual stock returns have high correlations.
Explanation:
In Modern Portfolio Theory (MPT), the individual behavior of each investment is viewed and evaluated based on how it affects the overall portfolio's risk and return. For this particular case, all <em>individual stock volatilities</em> are <u>high</u>, which means the <em>overall portfolio volatility</em> is <u>high</u> as there is no <em>diversification</em>. Adding to that, having <em>highly correlated</em> stock return increases the volatility of the portfolio even more, as there is a higher chance of them all declining at once.
