1. If the current allocation of resources in a market for a certain good is efficient, then it must be the case that

Stock J has a beta of 1.26 and an expected return of 13.46 percent, while Stock K has a beta of .81 and an expected return of 10

Oxana [17]

Answer:

J = 0.422

K = 0.58

Explanation:

When a portfolio is said to have risk that is equal to market, this means that the beta is equal to 1.

Let us define the weight of stock J = x

Let us define the Weight of stock K = (1-x)

To get the The Beta of portfolio = (x*1.26) + ((1-x)*0.81) = 1

When we open the brackets,

1.26x + 0.81 - .81x = 1

1.26x-0.81x = 1-0.81

0.45x = 0.19

To get x we divide through by 0.45

X = 0.422

Therefore the Weight of stock J = 0.422

Then the Weight of stock K = 1 - 0.422 = 0.578

Approximately 0.58

5 0

3 years ago

Kirov, Inc. reports credit sales of $200,000 for the year ending December 31. The year-end unadjusted balance of its Allowance f

zubka84 [21]

Answer:

The correct answer is: $12,000

Explanation:

uncollectible debt = 6% of net sales

= 6/100 × 200,000

= 0.06 × 200,000 = $12,000

Therefore, $12,000 will be removed (debited) from the bad debt expense because it is uncollectible, and it is added (credited) to the Allowance for Doubtful accounts as bad debt to be paid for in the bad debt reserve account.

7 0

3 years ago

The standard number of hours that should have been worked for the output attained is 6,000 direct labor hours and the actual num

LenKa [72]

Answer:

Actual Rate= $9.5 per hour

Explanation:

Giving the following information:

Actual number of hours= 6,300

Direct labor price variance= $3,150 unfavorable

Standard rate= $9 per direct labor hour

<u>To calculate the actual rate, we need to use the direct labor rate (price) variance formula:</u>

Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity

-3,150 = (9 - Actual Rate)*6,300

-3,150 = 56,700 - 6,300Actual Rate

-59,850 = -6,300Actual Rate

-59,850/-6,300 = Actual Rate

$9.5 = Actual Rate

4 0

3 years ago

An auto analyst is conducting a satisfaction survey, sampling from a list of 10,000 new car buyers. The list includes 2,500 Ford

Ghella [55]

Answer:

No

Explanation:

Simple random sampling gives each member in the entire population an equal opportunity to be included in the sample. The technique removes bias in the selection procedure. It applies where a small number would adequately represent the entire population.

The procedure described in this case is a deviation of simple random sampling. It is stratified random sampling.

In stratified random sampling, the population is first divided into subgroups based on shared characteristics. The researcher uses simple random sampling to select representatives of each group in the sample population. The techniques ensure each group is fairly represented in the research.

Subdividing vehicles by their make is creating strata or subgroups.

3 0

3 years ago

When writing formal letter, you should introduce yourself to the recipient by..

Ket [755]

<span>Knowing how to introduce yourself in the letter can certainly help you gain the respect and attention after proper submission of your resume. is the answer</span>

8 0

3 years ago

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