Describe strategies that companies can employ to help ensure that employees approach transfers and promotions, particularly when
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Question: What percentage of the variation in overhead costs is explained by the independent variable
Answer: 82.8%
Explanation:
= 0.848 (84.8%), the explanation of variation in Y from the X regress
Question: What is the total overhead cost for an estimated activity level of 60,000 direct labor-hours
Answer: $410,000
Explanation:
The equation resulting from this regression analysis is:
Total overhead = Estimated fixed cost + Estimated variable cost per labor hour x Labor hours
= Intercept estimate + Coefficient estimate on independent variable x 60,000 DLH
= 110000 + 5 x 60000 DLH
= 110000 + 300000
= 410000
Answer:
II. Including human capital in the market portfolio
Explanation:
Beta refers is a measure of systematic risk of a portfolio which is defined as degree of responsiveness of security return with that of the market return.
Market portfolio represents, the rate of return all the securities in the market currently earn. An investor would require excess of market portfolio return over risk free rate of return, based upon the sensitivity of portfolio return to market return i.e beta.
Jagannathan and Wang conducted a study testing capital asset pricing model which was developed by William Sharpe and John Lintner.
Under their study, Jagannath and Wang included human capital beta in the market portfolio. while evaluating returns from a hundred stocks portfolio. They observed, the coefficient of determination i.e rose from 2% to 75% upon addition of human capital.
Thus, the method found how beta performance in explaining security returns could be enhanced upon inclusion of human capital.