Answer:
(2) 4%
Explanation:
The portfolio is considered to be less risky if its volatility is low. The higher standard deviation the more risky is the project. For Duke Energy and Microsoft the investment portfolio required is risk free investment. To calculate the risk free rate we calculate using the formula;
Var Rp = x1 2Var R1 + x2 2Var R2 +2 x1 x2 Corr (R1, R2) SD1 SD2
Var Rp = 0.14 + 0.44 + 2 (1) * (-1) * 6% * 24%
Solving for this we get the risk free investment at 4%.
Answer:
A farmer is the one that owns the cattle and is ready to sell it on the market demand, while the meatpacker is the one who buys the product and sells it in different parts to the end consumers.
Since they both are using the commodity market to reduce the risk, the farmer will be the one who agrees to sell the cattle in the future at a fixed rate, while the meatpacker will be the one who agrees to buy the cattle in the future at a specified price fixed by him.
Hope this helps. ThankYou.
Answer:
The variable costing unit product cost was <u>$69.</u>
Explanation:
Variable Product Costing is a situation whereby only the variable costs of production is taking into account to estimating the cost per unit of a product. This implies that none of the fixed cost will be included in the cost of the product.
Based on the explanation above, the variable costing unit product cost to produce a single product by Kray Inc. can be calculated as follows:
Kray Inc.
Calculation of Variable Costing Unit Product Cost
<u>Particulars Amount ($) </u>
Direct materials 40
Direct labor 19
Variable manufacturing overhead 8
Variable selling and administrative expense <u> 2 </u>
Variable cost per unit <u> 69 </u>
Therefore, the variable costing unit product cost was <u>$69.</u>
Answer:
Motivational benefit
Explanation:
Remember, anything that brings you a certain level of push towards an expected end is a motivation. For example, having greater job opportunities sets one apart from others, which may lead to a better standard of living which creates a motivational benefit
Thus, we notice may notice many parents encouraging/motivating higher education for their children because of the perceived benefits they believe in so much.
