Answer:
The slope of the CML = (13% - 7%)/25% = 0.24
Explanation:
Given that:
expected rate of return of 17%
standard deviation of 27%.
The T-bill rate is 7%.
You estimate that a passive portfolio invested to mimic the S&P 500 stock index yields an expected rate of return of 13% with a standard deviation of 25%.
The slope of the CML is
Slope of the CML = (Expected return of Market - Risk free return)/Standard deviation of market
The slope of the CML = (13% - 7%)/25% = 0.24
= (0.13 - 0.07) /0.25
= 0.24
Complete Question:
As compared to a traditional income statement format, an income statement organized by cost behavior does not include:
a contribution margin.
b cost of goods sold.
c operating income.
d revenues
Answer:
As compared to a traditional income statement format, an income statement organized by cost behavior does not include:
b cost of goods sold.
Explanation:
Cost behavior describes the classification of costs into four main patterns because of the way they respond to changing activity levels. The four basic cost behavior patterns are fixed, variable, mixed (semi-variable), and step. These cost behavior patterns remain valid within the relevant production and sales range or activity level or volume.
To find the answer, we first calculate the multiplier.
By using the equation,
ms= 1 ÷ (1 – MPC)
MPC = marginal propensity to consume = 0.8
ms= 1 ÷ (1 – MPC) = 1 ÷ (1 - 0.8)
= 5
Thus, the multiplier is 5.
An increase in government spending = $600 billion
Now, multiplied $600 billion by the multiplier, which is 5.
$600 billion x 5
= $3,000
Thus, the answer is $3,000 billion increase in real GDP.
Answer:
depending on the place you can consider the number of people who go to it and on that side, the fame it would have for its service, and greater economic progress.
Explanation:
Answer:
The journal entry is shown below:
Explanation:
The journal entry for the sale of the goods using the system of perpetual inventory is shown below:
Cost of Goods sold A/c.............................Dr XXXX
Inventory A/c........................................Cr XXXX
Being record the sale using perpetual inventory system
Under the system of perpetual inventory, the sale or the purchase of inventory is recorded immediately using the point of sale system.
So, account of Cost of goods sold (COGS) is debited against the inventory which is sold through the business and that is credited.
