Answer:
Sole Purpose Shoe Company
The reason for Sarah to want to use standard costs to compare with her actual costs is:
A) Management can evaluate the differences between standard costs and actual costs to focus on correcting the cost variances.
Explanation:
Standard costs provide a control technique for evaluating the Sole Purpose Shoe Company's performance at three levels: a standard performance level, a measure of actual performance, and a measure of the difference (variance) between standard and actual costs. Sarah will use the variance resulting from the comparison of standard costs with actual costs to measure the non-financial performance of the entity.
Answer:
Portfolio return = 7.3%
Explanation:
<em>The portfolio expected rate of return would be the weighted average expected rate of return</em>
Weighted average expected rate of return=
12%× (1000/(3500+1000) + (3,500/(1000+3500)× 6%= 0.073333333
Expected rate of return = 0.073333333
× 100 = 7.3%
Portfolio return = 7.3%
Answer:
A
Explanation:
The quality should be about the same.
The social responsibility should also be about the same.
There shouldn't be side effects of most products. If you are speaking of medications, there really ought to be the same side effects with the same severity and the same statistical occurrences.
The only difference is the company selling the product.
There have been exceptions to this where different "fillers" were used in the generic brand and the side effects were different and more severe. I've only heard of one case however and I cannot remember what it was. Manufacturers were careful not to let it happen again.
Do you need help or are you telling?
Answer: Modern portfolio theory takes this idea even further. It suggests that combining a stock portfolio that sits on the efficient frontier with a risk-free asset, the purchase of which is funded by borrowing, can actually increase returns beyond the efficient frontier.
Risk premium is defined as excess return over risk free rate by taking extra risk. A risk-free asset has zero risk, so risk premium on these assets is zero. As risk level of investment increases, risk premium on investment also increases.
The market risk premium is the difference between the expected return on a market portfolio and the risk-free rate. The market risk premium is equal to the slope of the security market line (SML), a graphical representation of the capital asset pricing model (CAPM). CAPM measures required rate of return on equity investments, and it is an important element of modern portfolio theory and discounted cash flow valuation.
Explanation:
