Suppose you invest equal amounts in a risky asset with an expected return of 16% and a standard deviation of returns of 18% and a risk-free asset with an interest rate of 4%. Calculate the standard deviation of the returns on the resulting portfolio.

Answers

Answer 1
Answer:

Answer:

The answer is "10\%".

Explanation:

You are equivalent investors in 16 percent of a portfolio and 4 percent of a risk-free asset. A weighted mean of these two will become the predicted return.

= \text{(Portfolio weight} * \text{Return portfolio)} + \text{(Portfolio weight}* \text{risk-free)}\n\n

= (0.5 * 16\%) + (0.5 * 4\%)\n\n= (0.5 * (16)/(100)) + (0.5 * (4)/(100))\n\n= (8)/(100) +  (2)/(100)\n\n= (8+2)/(100)\n\n= (10)/(100)\n\n= (1)/(10)\n\n= (1)/(10) * 100\n\n=10\%


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Mira Mesa Appliances makes and sells kitchen equipment for offices and hotel rooms. Mira Mesa management believes that a new model of refrigerator made out of a synthetic material would sell well at a price of $260 per unit. Labor costs are estimated at $32 per unit and overhead costs would be $24 per unit. The major uncertainty is the price of the synthetic material. Mira Mesa is in negotiations with several suppliers for the material. Because of the risk associated with the new product, Mira Mesa will only proceed if the estimated return is at least 30 percent of the selling price.Required:
What is the most Mira Mesa can pay for the synthetic material per unit (refrigerator) and meet its profitability goal?

Answers

Answer:

$126

Explanation:

We can calculate the amount Mira can pay for the synthetic material per unit (refrigerator) and meet its profitability goal by deducting the estimated profit and then all the cost from the selling price per unit.

Selling price per unit                                        $260

Less

estimated return (260x30%) =                    ($78)

Labor costs                                                    ($32)

Overhead costs                                            ($24)

Material                                                              $126      

Amount Mira can pay for Synthetic material per unit is $126

               

For fiscal year 2016, Nancy calculated the following costs for Choco-rama’s manufacturing process. Beginning work in process inventory, $22,655 Ending work in process inventory, $28,207 Beginning raw materials inventory, $42,385 Ending raw materials inventory, $44,299 Raw materials purchased, $387,521 Office supplies purchased and used, $15,274 388,400 man-hours of factory labor incurred at $23.60/hour 14,200 man-hours of factory oversight labor incurred at $28.75/hour Administrative salaries, $392,000 Factory utilities, $18,500 Factory depreciation, $9,700 Factory repairs, $15,400

Answers

Answer:

The Cost of Manufactured Goods                                                   9,998,145

Explanation:

The question is to determine Choco-rama's Cost of Goods Manufactured for the 2016 Fiscal Year.

CHOCO RAMA COST OF GOODS MANUFACTURED FOR THE 2016 FISCAL YEAR

Description                                                  Amount ($)             Amount ($)

Opening Inventory of Raw materials                                             42,385

Add: Purchase of raw materials                                                     387,521

Direct raw materials available                                                       429,906

Subtract: Closing raw materials                                                      (44,299)

Raw materials in Production                                                          385,607

Add:

Direct labour  ($388,400 x $23.60)                                                9,166,240

Manufacturing overhead                                                                  451,850                      

The total manufacturing costs                                                       10,003,697

Add: Opening Work-in-Progress                                                      22,655

                                                                                                         10,026,352

Subtract: Closing work-in-progress                                                  (28,207)

The Cost of Manufactured Goods                                                   9,998,145

                                           

 

Suppose the economy only produces three goods: bread, laptops, and movies. Calculate the CPI of 2008, using 2004 as the base year.

Answers

Answer:

Most of the question is missing, so I looked for a similar one and found the attached image.

CPI = (current year price × base year quantity) / (base year price × Base year quantity)

CPI for bread in current year = [($1.50 × 2,000) / ($1 × 2,000)] x 100 = 150

CPI for laptops in current year = [($1,500 × 100) / ($2,000 × 100)] x 100 = 75

CPI for movies in current year = [($7 × 50) / ($5 × 50)] x 100 = 140

CPI for current year = (CPI for bread x weight of bread) + (CPI of laptops x weight of laptops) + (CPI of movies x weight of movies) = (150 x $2,250/$227,530) + (75 x$225,000/$227,530) + (140 x $280/$227,530) = 1.48 + 74.17 + 0.17 =75.82

Final answer:

To calculate the CPI in 2008 using 2004 as the base year, compare the prices of the three goods (bread, laptops, and movies) in 2008 to their prices in 2004. Multiply the price of each good by the quantity consumed to calculate the cost of the basket in each year. Divide the cost of the basket in 2008 by the cost of the basket in 2004 and multiply by 100 to get the CPI.

Explanation:

The CPI (Consumer Price Index) measures the change in the prices of a fixed basket of goods and services over time. To calculate the CPI in 2008 using 2004 as the base year, you need to compare the prices of the three goods (bread, laptops, and movies) in 2008 to their prices in 2004. Here's how you can calculate the CPI:

  1. Determine the price of each good in 2008 and 2004.
  2. Calculate the cost of the basket in 2008 by multiplying the price of each good by the quantity consumed.
  3. Calculate the cost of the basket in 2004 by multiplying the price of each good by the quantity consumed.
  4. Divide the cost of the basket in 2008 by the cost of the basket in 2004 and multiply by 100 to get the CPI.

For example, if the cost of the basket in 2008 is $100 and the cost of the basket in 2004 is $80, the CPI would be (100/80) * 100 = 125.

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It costs $1,200 to produce 50 pounds of a chemical and it costs $2,200 to produce 150 pounds. The chemical sells for $15 per pound x is the amount of chemical; y is in dollars. a. Find the cost function. b. What is the fixed cost? c. How many pounds must be sold to break even? d. Find the cost and revenue at the break-even point.

Answers

Answer:

a.

C(y) = mx + b

y = cost in dollars

x = amount of chemical

m = per unit variable cost

b = fixed cost

b.

Use High low Method to calculate the Variable cost from the total cost given

Variable Cost = ( Highest activity cost - Lowest activity cost ) / ( Highest Number of Units - Lowest Number of Units )

Variable Cost = ( $2,200 - $1,200 ) / ( 150 - 50 )

Variable Cost = $1,000 / 100

Variable Cost = $10 per unit

Fixed Cost = $2,200 - ( 150 x $10 )

Fixed Cost = $2,200 - $1,500

Fixed Cost = $700

c.

Contribution Per Unit = Price - Variable cost

Contribution Per Unit = $15 - $10

Contribution Per Unit = $5

Break-even point = $700 / $5

Break-even point = 140 Pounds

d.

Revenue = 140 x $15 = $2,100

Cost = 140 x 10 = $1,400

LO 6.5Under absorption costing, a unit of product includes which costs?direct material, direct labor, and manufacturing overhead
direct material, direct labor, and variable manufacturing overhead
direct material, direct labor, and fixed manufacturing overhead
direct material, direct labor, and all variable manufacturing overhead

Answers

Answer: direct material, direct labor, and fixed manufacturing overhead

Explanation: In calculating product cost in a manufacturing environment, there are two types of costing namely the variable costing method and absorption costing method.

Under absorption costing, a unit of product includes direct materials, direct labour, variable overheads and all fixed manufacturing overhead.

under this method, all variable cost as well as fixed cost are all included in the cost of a product.

Absorption costing is required by GAAP and so has to be using in preparing the financial accounts.

Under absorption costing, a unit of product includes all production costs, namely direct material, direct labor, and both variable and fixed manufacturing overhead.

Under absorption costing, a unit of product includes all costs that are involved in the manufacturing process. These costs include direct material, direct labor, and both variable and fixed manufacturing overhead. To elaborate, direct materials are the raw materials used in producing the product, direct labor is the hands-on labor involved in production, and manufacturing overhead consists of indirect costs associated with production such as factory rent, utilities and production manager salaries. Both variable and fixed overhead costs should be included, with the former changing with the level of production and the latter remaining constant regardless of the production volume.

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For a business to be successful and to fulfill itsmission and vision, it will need a strategy for
beating the competition called a competitive
advantage. Competitive advantage comes from one
(or a combination) of all of the following factors
EXCEPT
a
quality
b
quantity
C
price
d
service
e
location

Answers

Answer:

e

Explanation:

i don't know but have a feeling that it's e because I like e eeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee33333333333333e333333333333333333ee trust me it's e