Answer:
e. Portfolio P has the same required return as the market (rM).
Explanation:
The answer is e. Portfolio P has the same required return as the market (rM).
let's find the beta of the portfolio = 0.5 * 0.7 + 0.5 * 1.3 = 1.0
From the information above , the required return on the portfolio = risk free rate + beta * (Expected market return - risk free rate) = risk free rate + 1 * (Expected market return - risk free rate) = Expected market return.
Answer
Overhead allocation to each product is :
W1 $5,161
M0 $21,639
Total $26,800
Gross profit of each product:
W1 $7,239
M0 -$5,239
Total $2000
Kindly refer to the attached document for a detailed breakdown of workings
By keep doing what your doing and
I'll go with D fixed!!!!!!