Answer:
The correct answer is $18920.
Explanation:
Boone Company purchased a piece of machinery by paying $18,000 cash.
In addition to the purchase price, the company incurred $800 freight charges.
Estimated useful life of the machine is 5 years and will require $600 for insurance over that period.
So insurance money for a year = $ ( ) = $120.
Boone Company would record the cost of the machine at $ ( 18000+ 800+ 120) = $ 18920.
Answer:
A) True
Explanation:
The purpose of creating a portfolio is to diversify investment and achieve risk reduction as famously conveyed by the proverb, "do not put all the eggs in a single basket".
The Capital Asset Pricing Model (CAPM) was developed by William Sharpe and John Lintner. The model explains the relationship between expected return of an investor and the investment risk.
Return earned by a portfolio is the weighted average return of the individual stock returns.
CAPM helps calculate expected return of an investor by the following formula:
wherein, Risk free rate of return yielded by treasury bonds
B = Beta, which is a coefficient which conveys the degree of responsiveness of security return in relation to the market return.
Return which can be earned on market portfolio
Thus, the relevant risk with respect to a portfolio refers to an individual stock's share of contribution to the portfolio risk.
Answer:
The Gross Domestic Product (GDP) is a measure of the value of all final Goods and Services in an Economy in a given period usually a year.
It can be calculated using the Expenditure method which is;
= <em>Consumption + Investment + Government Spending + Net Exports</em>
Consumption
Here, the final goods and services that all households in the Economy purchased and used for the year are included. It is usually the largest component of GDP.
The following will fall here.
- <em>Ice cream</em>
<em>- A domestically manufactured personal computer</em>
<em>- Cab fare for personal use</em>
<em>- A ticket to a local sporting event</em>
<em>- 55 cent tacos</em>
Investment
The Goods that will fall under here include Capital goods purchased or made in an Economy for the purpose of increasing production capacity.
Of the goods listed only one will fall here being;
- <em>A Domestically Manufactured Personal Computer. </em>
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Government Spending
This includes all Public Spending in the Economy on goods and services for things such as Health and Defense but excluding transfer payments such as Social Security.
- <em>Public School Teacher's Salary will fall under here. </em>
Net Exports
These are the Exported goods from the country less the goods that it imported. From the above only one item falls under this category;
- <em>Exported Doll House</em>
