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3 years ago

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Mutual fund A earned 10 percent while B earned 8 percent. The standard deviations of the returns were 10 percent and 7 percent,

respectively. The risk free rate is 1%. According to the Sharpe ratio, which fund performed better

1 answer:

Lesechka [4]3 years ago

6 0

Answer:

Explanation:

The Sharpe ratio is given by:

(Return of portfolio - risk free rate) / standard deviation.

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An increase in interest ratesA. increases investment spending on machinery, equipment, factories, consumption spending on dura

RoseWind [281]

Answer:

The correct answer is option C.

Explanation:

An increase in the interest makes it more expensive to borrow money. In other words, the cost of borrowing increases. This will cause investment expenditure on machinery, equipment, and factories to decline.

Increased interest rate also increases the opportunity cost of holding money. The consumers will get more return from saving. This will reduce, the consumer spending on durable goods.

The increased interest rate will attract foreign capital inflows. The increase in demand for currency will increase its value. This will reduce exports and increase imports. As a result, net exports will decline.

8 0

3 years ago

At the beginning of July, CD City has a balance in inventory of $2,450. The following transactions occur during the month of Jul

denpristay [2]

Answer:

CD City

a. Journal Entries, using perpetual inventory system:

July 3:

Debit Inventory $1,350

Credit Accounts Payable (Wholesale Music) $1,350

To record purchase of CDs on account, terms, 2/10, n/30.

July 4:

Debit Freight-in $110

Credit Cash $110

To record cash payment for freight.

July 9:

Debit Accounts Payable (Wholesale Music) $200

Credit Inventory $200

To record return of CDs.

July 11:

Debit Accounts Payable (Wholesale Music) $1,150

Credit Cash Discount $23

Credit Cash $1,127

To record full settlement on account.

July 12:

Debit Accounts Receivable $3,900

Credit Sales $3,900

To record sales of CDs on account.

Debit Cost of Goods Sold $2,050

Credit Inventory $2,050

To record the cost of sales.

July 15:

Debit Cash $3,900

Credit Accounts Receivable $3,900

To record cash receipt from customers.

July 18:

Debit Inventory $2,150

Credit Accounts Payable (Music Supply) $2,150

To record purchase of CDs on account, terms, 2/10, n/30.

July 22:

Debit Cash $3,250

Credit Sales $3,250

To record cash sales.

Debit Cost of Goods Sold $1,550

Credit Inventory $1,550

To record cost of sales.

July 28:

Debit Accounts Payable (Music Supply) $110

Credit Inventory $110

To record return of CDs.

July 30:

Debit Accounts Payable (Music Supply) $2,040

Credit Cash $2,040

To record full settlement.

b. Top Section of Multiple-step Income Statement for the month of July:

Sales $7,150

Cost of Goods Sold = ($3,600)

Gross Profit = $3,550

Explanation:

a) Sales

July 12 = $3,900

July 22 = $3,250

Total $7,150

b) Inventory

Beginning Balance = $2,450

July 3 purchase = 1,350

July 9 return = -200

July 12 cost of sales -2,050

July 18 purchase = 2,150

July 22 cost of sales -1,550

July 28 return = -110

Ending Balance = $2,040

c) Cost of Goods Sold

July 12 cost of sales $2,050

July 22 cost of sales 1,550

Total $3,600

8 0

3 years ago

frito-lay is promoting the sunchips brand as being environmentally friendly. this message is communicated in all of its print an

umka2103 [35]

The Sun Chips brand is being marketed by Frito-Lay as being environmentally friendly. All of its point-of-purchase displays, packaging, print and television advertisements and television commercials convey this idea. The business employs an integrated marketing communications approach.

Integrated marketing is a method for spreading a unified message across all of the platforms your business utilizes for marketing. Regardless matter where clients choose to do business with a firm, it offers stability. Without an integrated marketing strategy, you run the risk of saying the wrong thing or speaking illogically.

There are five key communication strategies that complement integrated marketing communications, as we've just mentioned. These include sales promotion, advertising, public relations, direct marketing, and advertising.

To learn more about integrated marketing communications

brainly.com/question/14691440

#SPJ4

8 0

1 year ago

Consider the following linear program: Min s.t. 8X + 12Y 1X + 3Y >= 9 2X + 2Y >= 10 6X + 2Y >= 18 A, B >= 0 a. Use t

mihalych1998 [28]

Answer: Graph of (A) (B) and {D) are attached accordingly.

Explanation:

A)

The critical region of the constraints can be seen in the following diagram -

(0,9) (0,5) (0,3) (0,0) (3,0) (5,0) (9,0) The feasible region is shown in white

The intersection points are found by using these equations -

Vertex Lines Through Vertex Value of Objective

(3,2) x+3y = 9; 2x+2y = 10 48

(9,0) x+3y = 9; y = 0 72

(2,3) 2x+2y = 10; 6x+2y = 18 52

(0,9) 6x+2y = 18; x = 0 108

So, we can see the minimum value of the objective function occurs at point (3,2) and the minimum value of the objective function is = 48.

------------------------------------------------------------------------------------------------------------------------------------------------------------------

B)

When we change the coefficients of the variables in the objective function, the optimal solution may or may not change as the weights (coefficient) are different for each constraints for both the variabls. So, it all depends on the coefficient of the variables in the constraints.

In this case, the optimal solution does not change on changing the coefficient of X from 8 to 6 in the objective function.

The critical region would remain same (as shown below) as it is defined by the constraints and not the objective function.

(0,9) (0,5) (0,3) (0,0) (3,0) (5,0) (9,0) The feasible region is shown in white

However, the optimal value of the objective function would change as shown below-

Vertex Lines Through Vertex Value of Objective

(3,2) x+3y = 9; 2x+2y = 10 42

(9,0) x+3y = 9; y = 0 54

(2,3) 2x+2y = 10; 6x+2y = 18 48

(0,9) 6x+2y = 18; x = 0 108

So, we can see that the minimum value now has become 42 (which had to change obviously).

-------------------------------------------------------------------------------------------------------------------------------------------------------

C)

Now, when we change the coefficient of the variable Y from 12 to 6, again the critical region would remain same as earlier. But in this case, the optimal solution changes as shown below -

Vertex Lines Through Vertex Value of Objective

(3,2) x+3y = 9; 2x+2y = 10 36

(9,0) x+3y = 9; y = 0 72

(2,3) 2x+2y = 10; 6x+2y = 18 34

(0,9) 6x+2y = 18; x = 0 54

We can see that the minimum value now occurs at (2,3) which is 34, so both the optimal solution and optimal value have changed in this case.

----------------------------------------------------------------------------------------------------------------------------------------------------------

D)

When we limit the range of the variables as -

4 \leq X \leq 8 \:\: and\:\: 12\leq Y \leq 24,

the critical region now becomes -

So, the new critical points are (4,12), (4,24), (8,24) and (8,12).

So, the values of the objective function at these points can be calculated as -

Vertex Value of Objective

(4,12) 8*4+12*12 = 176

(4,24) 8*4+12*24 = 320

(8,24) 8*8+12*24 = 352

(8,12) 8*8+12*12 = 208

So, the new optimal solution is (4,12) and the optimal value is 176.

if we knew the range of the variables in the part B and C earlier, we could have just said that the optimal solution will not change as the value would have been no longer depended on the coefficients of variables in the constraints.

7 0

4 years ago

Bumper-to-bumper traffic on free public roads, a(n)_____good, is an example of the_____.

Andrei [34K]

Answer:

b. Non-excludable; Tragedy of the commons.

Explanation:

Bumper-to-bumper traffic on free public roads, a(n) NON EXCLUDABLE good, is an example of the TRADEGY OF THE COMMONS

Therefore NON EXCLUDABLE good can be defined as the goods in which every individual or the general public have access to use in which the use of this goods by the public does not affect it availability for use in the future meaning that such goods will still be available for the public to make use of which is why Bumper to bumper traffic on free public roads, is a NON EXCLUDABLE good because it does not restrict or exclude a person or an individual from using it. While TRADEGY OF THE COMMONS on the other hand can be defined as the way in which a person or an individual desire to use or make use of resource for their own self desire or self interest and gain without caring about other users of the same goods which inturn may lead to reduction or depletion of such resource for other users of it. But despite this tragedy of the common does not restrict or exclude the public from using or consuming it. Example of TRADEGY OF THE COMMONS is Traffic congestion.

5 0

3 years ago