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vredina [299]
3 years ago
5

What is the expected return on a portfolio that has $100 invested in stock 1 with an expected return of 18.0% and $45 invested i

n stock 2 with an expected return of 12.0%? a) 16.1% b) 16.3% c) 16.5% d) 16.7%
Business
1 answer:
Sunny_sXe [5.5K]3 years ago
5 0

Answer:

Portfolio r = 0.161379 or 16.1379% rounded off to 16.1%

Option a is the correct answer

Explanation:

The expected return of a portfolio is the function of the weighted average of the individual stocks' returns that form up the portfolio. To calculate the expected rate of return of a two stock portfolio, we use the following formula,

Portfolio r = wA * rA  +  wB * rB

Where,

  • w is the weight of each stock
  • r is the return on each stock

Total investment in portfolio = 100 + 45 = 145

Portfolio r = 100/145 * 0.18  +  45/145 * 0.12

Portfolio r = 0.161379 or 16.1379% rounded off to 16.1%

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The following data are taken from the unadjusted trial balance of the Westcott Company at December 31, 2017. Complete the worksh
Alex17521 [72]

Answer:

The total of adjusted trial balance debit and credit side is $159 after posting the given transactions. The sheet is attached with the full working showing both of the trial balances - un-adjusted and adjusted one.

Explanation:

Following journal entries were posted in the trial balance to adjust it.

<u>Transaction a:</u>

Debit: depreciation expense $3

Credit: accumulated depreciation $3

<u>Transaction b: </u>

Debit: salaries expense $6

Credit: accrued salaries $6

<u>Transaction c:</u>

Debit: Unearned revenue $12

Credit: Revenue $12

When unearned revenue is earned, it is removed from unearned revenue by debiting it and then it is credited to the revenue for the period.

<u>Transaction d:</u>

Debit: supplies expense $9

Credit: supplies $9

<u>Transaction e:</u>

Debit: insurance expense $15

Credit: Insurance prepaid $15

When the insurance is expired, it is deducted from the prepaid insurance by crediting it from prepaid insurance account and it is debited to insurance expense account.

Download docx
3 0
3 years ago
Write an essay about Reception and basic etiquette of
Dmitriy789 [7]

Answer:

The reception of the organization is the first place that a visitor sees. It is first observation of any visitor and then a perception is created about the whole organizations. The staff at reception must be well dress according to the organization rules.

Explanation:

The staff should be polite and speak gently to every one. There should be a culture of greeting every one in the organization this is the basic and an important etiquette. The workplace of every individual should be clean and the files and papers should be arranged properly. Everyone should speak politely to each other so that the other staff working in office does not gets irritated.

5 0
3 years ago
What is supply-side fiscal polioy? Identify each policy action as being focused on the demand side, the supply side, or both. Dr
Advocard [28]

Answer: Please refer to Explanation

Explanation:

Supply Side Fiscal Policy focuses on how to improve the ability of companies to supply more goods to the economy. The aim being that as companies supply more, they grow more and employ more people.

Demand Side Fiscal Policy on the other hand focuses on how to give more power to the Demand side of the Economy. It holds that increasing demand leads to increased supply which is good for the economy.

Classifying the above,

1. research grants for a corporation developing new technologies. SUPPLY SIDE.

This is aimed at increasing supply by improving the ways a company is able to produce it's goods and services.

2. government-funded scholarships for college students. SUPPLY SIDE.

This is supply side because it leads to more Colleges offering placement to students.

3. stimulus packages for firms that are "too big to fail". DEMAND SIDE.

Companies considered Too big to fail usually hire a lot of people. Keeping them running leads to them being able to pay off their employees which increases the demand in the economy.

4. increasing spending on "shovel-ready" projects. DEMAND SIDE.

Shovel Ready projects are those that are ready to be initiated. By increasing spending on them, they hire people immediately and begin work which increases the income flowing to people in the economy which increases demand.

5. lowering income tax rates at all income levels. BOTH.

By lowering income tax levels people are both able to spend more which increases demand as well as able to Invest more in companies which will increases supply.

8 0
3 years ago
Hughes Corporation is considering replacing a machine used in the manufacturing process with a new, more efficient model. The pu
pogonyaev

Answer:

50,000

Explanation:

Hughes Corporation can calculate the incremental cash outflow required to acquire the new machine by just deducting the sales proceeds from the cost of the new machine.

DATA

New machine = $150,000

Old machine = 100,000

Cash outflow per year (18,000 - 10,000) = 8,000

Salvage value = 25,000

Annuity factor = 8%

Solution

Incremental Cash outflow = Cost of new machine - Sales proceeds from old machine

Incrementa Cash outflow =  150,000 - 100,000

Incremental Cash outflow = $50,000

4 0
3 years ago
Marie, a salesperson, uses a variety of statements and questions while trying to sell products to prospective buyers. She design
Thepotemich [5.8K]

Answer:

Option "C" is the correct answer to the following situation.

Stimulus Response Selling

Explanation:

Stimulus-Response Strategy- A marketing strategy that depends on the salesperson's freedom to say the right thing stimuli to get a favorable response from the buyer's answer, also referred to as the Canned Method because a template is widely used.

Marie uses a combination of statements and questions when trying to sell goods to potential buyers and tries to construct statements and questions so that the prospective buyer can receive beneficial responses.

4 0
3 years ago
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