Answer:
e.$8,000 of fixed costs and $108,000 of variable costs.
Explanation:
Fixed costs don't change with a change in production volume, therefore, fixed costs remain $8,000.
The cost per unit to produce 15,000 units is:
Assuming a new production volume of 18,000 units, budgeted variable costs are:
The budgeted amounts are: e.$8,000 of fixed costs and $108,000 of variable costs.
Answer with Explanation:
The investment in securities must include purchases of stock of more than 15 industry firms because diversified investment gives an average rate of return on investments. Hence it would be better to lower the risk of investment by simply investing in more than 15 firms and each of them must be from different industry sector. Nowadays due to coronavirus, it would be better to investing in fintech, IT and Hi-Tech industries will pay much more than low tech industries. Tesla is one of these tech companies whose share price have surged by 390% in past 12 months. It doesn't mean that other industry products don't pay enough. Setting objective includes how much yearly investment must be added to you security portfolio so that the net worth of the portfolio keeps growing. The reinvestment of dividends received, insurance of downside risk, investment on the basis of value at risk, etc. are all the set objectives that are considered while investing and managing security portfolio. If you are not confident with setting objectives then investing via investment institutions would be a another best option which had employed hundreds of CFA's who are working to increase the wealth of their potential clients and it is more likely that you take home a better return on investment as compared to a person who has little knowledge of security investments.
Answer: bounded rationality
Explanation: Proposed by Herbert A. Simon, _____bounded rationality_____ means that managers are limited in the extent to which they can use the classical model of decision making, because they only have so much time and ability to process information.
In order words, Simon maintained that individuals do not seek to maximise their benefit from a particular course of action. This is because one cannot take in and process all the information that would be needed to maximize personal benefits, and that even if this was tenable, our minds would not be capable of processing it properly. In summary, the human mind necessarily restricts itself—bounded rationality.
Answer:
Option 1
Explanation:
The computation is shown below:
For option 1
Dividend received in 6 month is
= $0.25 × 2
= $0.50
Now
Profit from the sale of stock is
= sale price - purchase price
= $24 - $20 i
= $4
So,
Net proceed received from stock is
= dividend + profit from the sale
= $0.50 + $4
= $4.50
Now
Holding period return for 6 months is
= (Net proceed received ÷ purchase price) ×100
= ($4.50 ÷ $20) × 100
= 22.5 %
So,
Annualized holding period return is
= 22.5% × 2
= 45%
For Option 2
Dividend received in 1 year is
= $0.50 × 4
= $2
Profit from sale of stock is
= $30 - $27
= $3
Net proceeds from stock is
= $2 + $3
= $5
So,
Annualized holding period return is
= ($5 ÷ $27) × 100
= 18.52%.
As we can see that option 1 contains higher return so it would be selected
Answer:
Standard deviation= $43.309
Explanation:
Standard deviation can be defined as a measure of dispersion of a set of values from their mean. When standard deviation is low it means the variables are close to their mean. While if standard deviation is high the variables are far away from the mean.
The mean= (sum of the values)/number of values
Mean= (97+102+56+26+3)/5
Mean= $56.80
Standard deviation= √(Σ(x- mean)^2/number-1
Standard deviation= √{(97-56.8)^2+ (102-56.8)^2+ (56-56.8)^2+ (26-56.8)^2+ (3-56.8)^2}/5
Standard deviation= √(1616.04+2043.04+0.64+948.64+2894.44)/5-1
Standard deviation= √7502.8/4
Standard deviation= $43.309
