The lower the standard deviation of returns on a security, the higher the expected rate of return and the higher the risk.
The saying goes in investing "The higher the return, the higher the risk"
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Answer:
These lost wages would be considered as opportunity cost
Explanation:
The lost wages would be considered as opportunity cost .
Opportunity cost is the value of the next best alternative forgone in favor of a decision. The decision of the entrepreneur to start a business of his own would mean forgoing the wages from his paid employment.
Hence, the lost wages of $50,000 becomes an opportunity cost to the decision.
These lost wages would be considered as opportunity cost
Answer:
May 1 2022 Cash 435540 Dr
Notes Receivable 408000 Cr
Interest Revenue 12240 Cr
Interest Receivable 15300 Cr
Explanation:
The interest revenue for 5 months was already recorded on 31 december against an interest receivable account that has a balance of 5 months of interest due.
The interest on note for 9 month period is = 408000 * 0.09 * 9/12 = $27540
The 5 month interest recorded on 31 december is 408000 * 0.09 * 5/12 = 15300
Thus, the interest revenue to be recorded on May 1 will be 4 months interest that is 27540 - 15300 = 12240
Answer:
b. revenues minus accounting and opportunity costs.
Explanation:
A normal profit occurs when the amount of profit generated by a company in a given period is equal to the amount of its costs, that is, in this situation the company's profit is sufficient to cover its costs and it manages to continue operating in a market in a way competitive, for this reason the normal profit
The opportunity cost refers to normal profit due to the fact that this is the amount that is equal to zero with respect to economic profit, which is what is necessary for the company to operate when considering the investment made.
Answer:
36 applications/hour
Explanation:
Number of application/hour/worker = 60/processing time
Number of application/hour = (60/processing time) * Number of workers
Process No of Processing Number of application Number of
Workers Time (min) /hour/worker application/hour
Application 4 6 10 40
Processing
Credit Check 6 10 6 36
Determine 6 15 4 24
Credit Limit
Issue Card 2 2 30 60
Capacity of credit check in applications per hours = 36 applications/hour
