Answer:
a) Portfolio ABC's expected return is 10.66667%.
Explanation:
Some information is missing:
Stock Expected Standard Beta
return deviation
A 10% 20% 1.0
B 10% 10% 1.0
C 12% 12% 1.4
The expected return or portfolio AB = (1/2 x 10%) + (1/2 x 10%) = 10% (it is the same as the required rate for stock A or B)
The expected return or portfolio ABC = (weight of stock A x expected return of stock A) + (weight of stock B x expected return of stock B) + (weight of stock C x expected return of stock C) = (1/3 x 10%) + (1/3 x 10%) + (1/3 x 12%) = 3.333% + 3.333% + 4% = 10.667% <u>THIS IS CORRECT</u>
Options B, C, D and E are wrong.
Answer: (a) Fall
(b) Increase
(c) Increase
(d) Unchanged
Explanation:
Suppose there is a competitive market with a downward sloping demand curve and horizontal supply curve. In a competitive market there are large number of buyers and sellers. So, if there is a downward shift in the supply curve, as a result equilibrium price will fall, equilibrium quantity will increase, consumer surplus now become larger and producer surplus remains the same because of the horizontal supply curve.
Answer:
concentrated demand
Explanation:
Business to business (B2B) salespeople have a very different job than regular salespeople, since every client matters and every client is VIP. B2B buyers know exactly what they want, and they will demand the best possible product at the least possible cost, specially if they are large corporations. The advantage of B2B sales is that one big sale can make a huge difference to your company and yourself. For example, companies that supply auto parts generally have only a few clients, since there are less than 10 car manufacturers in the US, but any sale involves millions of units.
Answer:
Margin
Explanation:
When you use an indicator like a return over something else (in this case over the investment) the demand is around having a margin over a quantity, so the indicator in this case could be operational margin or net margin but all of the over the sales.
Answer:
a. Received investment of cash by organizers and distributed to them 1,180 shares of $1 par value common stock with a market price of $15 per share.
Account Debit Credit
Cash $17,700
Common Stock $1,180
Additional Paid-In Capital $16,520
Assets increase, and stockholder's equity increase by the same amount: $17,700.
b. Purchased $8,200 of equipment, paying $1,500 in cash and owing the rest on accounts payable to the manufacturer.
Account Debit Credit
Equipment $8,200
Cash $1,500
Accounts Payable $6,700
Assets increase by a net $6,700 (Equipment - Cash), and Accounts Payable by $6,700 as well.
c. Borrowed $14,000 cash from a bank. Loaned $800 to an employee who signed a note.
Account Debit Credit
Cash $14,000
Notes Payable $14,000
Notes Receivable $800
Cash $800
Assets increase by a net $14,000 (Cash + Notes Receivable - Cash), and liabilities increase by $14,000
d. Purchased $20,343 of land; paid $9,000 in cash and signed a note for the balance.
Account Debit Credit
Land $20,343
Cash $9,000
Notes Payable $11,343
Assets increase by a net $11,343 (Land - Cash), and liabilities increase by the same amount.
