(a) Calculate the expected rate of return and standard deviation of rate of return of Stock X and Stock Y. (12 marks)
(b) Samuel plans to construct a portfolio consisting of 20,000 shares of Stock X and 10,000 shares of Stock Y. Stocks X and Y are currently trading at $60 and $80 respectively.
Calculate the weight of the Stock X and Stock Y in the portfolio. (3 marks)
(c) Calculate the expected rate of return and variance of the portfolio formed in part (b), given the covariance is -0.0018 (-18%2). (6 marks)
(d) Samuel has collected the following market data
- Risk-free rate: 4%
- Expected market return: 12%
- Beta of Stock Y: 1.8
i) Estimate the required rate of return on Stock Y using CAPM. (2 marks)
ii) Determine whether Stock Y is under, fairly or over-valued. （2 marks)
Answers
The expected rate of return of the portfolio is 10% and the variance of the portfolio is 0.7695%.
How do we obtain the stocks?(a) To calculate the expected rate of return and standard deviation of rate of return of Stock X and Stock Y, we need the following information:
Stock X: expected return = 8%, standard deviation = 15%
Stock Y: expected return = 12%,
standard deviation = 20%Covariance between Stock X and Stock Y = -0.0018
The expected rate of return of a portfolio is calculated as the weighted average of the expected returns of its constituent stocks.
We can calculate the weights of Stock X and Stock Y as follows:
Weight of Stock X = 20,000 * $60 / (20,000 * $60 + 10,000 * $80) = 0.5
Weight of Stock Y = 10,000 * $80 / (20,000 * $60 + 10,000 * $80) = 0.5Therefore, the expected rate of return of the portfolio is:
Expected rate of return = 0.5 * 8% + 0.5 * 12% = 10%
To calculate the standard deviation of the portfolio, we need to use the formula:σ_p = sqrt(w_x^2 * σ_x^2 + w_y^2 * σ_y^2 + 2 * w_x * w_y * Cov(x,y))where σ_p is the standard deviation of the portfolio, w_x and w_y are the weights of Stock X and Stock Y, σ_x and σ_y are the standard deviations of the returns of Stock X and Stock Y, and Cov(x,y) is the covariance between Stock X and Stock Y.
Substituting the values, we get:σ_p = sqrt(0.5^2 * 0.15^2 + 0.5^2 * 0.2^2 + 2 * 0.5 * 0.5 * (-0.0018)) = 0.087 or 8.7%Therefore, the expected rate of return of Stock X is 8%, the expected rate of return of Stock Y is 12%, the standard deviation of the rate of return of Stock X is 15%, and the standard deviation of the rate of return of Stock Y is 20%.
(b) The weight of Stock X and Stock Y in the portfolio are given below:
Weight of Stock X = 20,000 * $60 / (20,000 * $60 + 10,000 * $80) = 0.5 or 50%
Weight of Stock Y = 10,000 * $80 / (20,000 * $60 + 10,000 * $80) = 0.5 or 50%
(c) To calculate the expected rate of return and variance of the portfolio, we can use the following formulas:
Expected rate of return = w_x * E(r_x) + w_y * E(r_y)Variance of the portfolio = w_x^2 * Var(r_x) + w_y^2 * Var(r_y) + 2 * w_x * w_y * Cov(r_x,r_y)Substituting the values, we get:
Expected rate of return = 0.5 * 8% + 0.5 * 12% = 10%Variance of the portfolio = 0.5^2 * 0.15^2 + 0.5^2 * 0.2^2 + 2 * 0.5 * 0.5 * (-0.0018) = 0.007695 or 0.7695%
Therefore, the expected rate of return of the portfolio is 10% and the variance of the portfolio is 0.7695%.
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Related Questions
Which of the following might be a duty of a noninstructional aide?
A. Grade homework
B. Teach calligraphy
C. Tutor a child
D. Accompany a child to and from the lavatory
Answers
Tutor a child might be a duty of a non instructional aide. The Non-Instructional Aide supports the administration and instructors duty in maintaining a secure and disciplined learning environment and enforcing school rules.
Respects non instructional information about children, employees, and other administrative issues impacting the district with absolute secrecy. helps the teacher prepare and be ready for each day's activities; duty supports the teacher's efforts in the classroom. helps the teacher create lesson plans, curriculum, and lesson outlines in the designated topics. A person who assists a teacher in a classroom but is not a certified teacher is known as a teacher's aide.
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Ill GIVE BRAINLIEST
There is no difference between the statement of owner's equity
prepared by a sole proprietorship and the statement of changes in
partners' equity prepared by a partnership.
a. true
b. false
Answers
15. What is the net operating income for the year?
Answers
Where the above conditions are given, the net operating income for the year is $785,700
How is this so?Sales revenue - Cost of goods sold = Gross profit
Gross profit - Selling and administrative expenses = Operating income
Sales revenue - $2,970,000 Cost of goods sold - Beginning inventory - $52,800 Raw materials used in production - $608,000 Direct labor - $580,000 Manufacturing overhead applied - $647,500 (41,000 direct labor-hours $15.75 per direct labor-hour) Total cost of goods sold - $1,808,300Selling and administrative expenses - $376,000
Operating income is given as $2,970,000 - $1,808,300 - $376,000 = $785,700
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which statement is true of a flat file system? a. complex requests can be handled easily. b. programs and data are independent. c. same data can be stored in more than one file. d. it requires very less storage space.
Answers
The answer is c. same data can be stored in more than one file, is the statement is true of a flat file system.
What is the straightforward meaning of data?Data is information that has been transformed into a format that is useful for transfer or processing in computing. Data is information that has been transformed into binary digital form for use with modern computers and communication mediums. The topic of data may be used in either the singular or the plural.
What makes up data?Long channels of semiconductor material are used to create JFETs. At the ends of the semiconductor channels, ohmic contacts are placed to create the source and drain connections. A P-type JFET is one that has a lot of positive charges, and an N-type JFET is one that has lots of electrons.
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C. same data can be stored in more than one file.
What is data ?Data is information that has been organized and structured in a way that it can be used for analysis and communication purposes. It is organized into a logical structure that can be used to identify trends, relationships, and other useful information. Data can be collected from a variety of sources, such as surveys, questionnaires, databases, or even observations. Data can also be collected using a variety of methods, such as interviews, focus groups, and surveys.
Data can be used to make decisions, develop strategies, or even predict future events. Data can be used to inform decision making, help organizations measure progress, or track changes in customer behavior.
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Q. Which investor type most likely uses a family office to manage their investments?
A. Retail investors
B. Endowment funds
C. Ultra-high-net-worth investors
Answers
Answer:
The best answer would be C. Ultra-high-net-worth investors. Can I get brainliest
differentbetween 1931 and 1987 constitution
Answers
1931 was the first written constitution in the history of the country and revised in 1955 with in the same regime. In 1987 the new constitution was established by another regime. The 1995 Constitution of Ethiopian is a new constitution that come up with Federalism in Ethiopia.
V144
QUESTION 2
A bus driver covers a certain distance in 3 hours at an average
speed of
80 km/h.How long will the journey take at an average speed of 50
km /h?
There are 96 boys and 120 girls in Grade 9. Write down the ratio
of thenumber of boys to the number of girls in the class.
QUESTION 3
Find the HCF and LCM of 172 and 258.
QUESTION 4
Answers
Answer:
3hr=80km/r
?=50km/R
(50*3)/80=1.88hr
Black Lilies is a fledgling apparel company which is run and managed by its creator Patricia. She has advertised for an accounting executive to manage the finances of the firm. Which of the following, if true, would result in a complementary fit having occurred for the post?
a. Patricia is well-versed in accounting and will manage the firm's finances jointly with the new employee.
b. There is already a dedicated finance team in the firm who would work with the new employee.
c. The existing accounting executive is planning to quit to take up a better opportunity.
d. Patricia lacks the requisite skills to manage the company's accounts,hence the opening.
Answers
Answer:
d. Patricia lacks the requisite skills to manage the company's accounts,hence the opening.
Explanation:
Businesses require various set of skills from their employees to function properly and make a profit.
Also duplication of these skills should be avoided to maximise profit.
In the given scenario if Patricia were well versed in accounting them it would be a duplication of duties employing an accountant.
It would be a complimentary fit if Patricia lacks the requisite skills to manage the company's accounts,hence the opening.
Neil and John both need $20,000 to clear off a mortgage payment after 10 years. Neil invests $15,000 at 3 percent per annum of simple interest for 10 years, and John invests $15,000 at 3 percent compound interest compounded annually for 10 years. Who would be able to repay the amount from this investment easily?
Answers
Answer:
John
Explanation:
Neil will have the following amount after ten years.
Simple interest is calculated using the formula,
I= p x r x t
where I= interest, P= principal amount, r = interest rate, t is time
for Neil interest will be= $15,000 x 3/100 x 10
=$15,000 x 0.03 x 10
=$4500
Neil will have principal + interest amount
=$4,500 + $15,000
=$19,500
John invested in a compound interest account.
The amount after ten years will be
The formula for compound interest is
FV = PV × (1+r)^n
where FV = Future Value
PV = Present Value
r = annual interest rate
n = number of periods
After ten years, John will have
Fv= $15,000 x (1 + 3/100)^10
Fv= $15,000 x (1.03)^10
FV =$15,000 x 1.34391
Fv = $15,158.75
John will be able to clear his mortgage.
John will be able to repay the amount from this investment easier than Neil.
Because Neil has invested in simple interest, his amount at the end of 10 years will be equal to the interest earned and the principal amount.
According to the problem:
P (principal) = $15,000, I = 3%=0.03 and t =10 years
Therefore, I = P x r x t = 15,000 x 0.03 x 10 = $4,500
The amount at the end of 10 years
= principal + interest
= 15,000 + 4,500
= $19,500
On the other hand, John has invested his $15,000 in 3 percent compound interest compounded annually for 10 years.
According to the problem: P
= $15,000
I
= 3% = 0.03
n
= 10
Therefore, according to the formula
M = P( 1 + i )n where M is the final amount at the end of the term, we have
M = 15,000(1+0.03)10
= 20,158.75 (approximately).
= $20,158.75
Therefore, John will be able to repay the debt from this investment easily, because Neil is $500 short of the required amount.
Elvira is the CEO of All Things Inc. which employs a matrix structure which is the combination of the ________ and ________ structure. Group of answer choices functional; M-form network; functional M-form; simple simple; functional
Answers
There are different types of organizational structure. She employs a matrix structure which is the combination of the functional and M-form structure.
A matrix organization is known to be a company structure in which teams do report directly to multiple heads. It often differs from classic structure where team members only report to both a project manager and a department head.
A functional organizational structure is known to be a type of business structure that combines employees based on their specialty, skill or related roles.
The multidivisional or M-form firm is known to be a type of an organization where operating authority is given only to divisions set u along either product or geographic lines.
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If Amelia would like to double her money in twelve years, how much interest does she need to earn O 12 percent O 16.6 percent O 6 percent 10 percent
Answers
Out of the given answer choices, the interest rate that Amelia needs to earn to double her money in twelve years is 16.6 percent.
To find out how much interest Amelia needs to earn to double her money in twelve years, we need to use the compound interest formula.
This formula is used to determine the future value of an investment based on the principal, the interest rate, the number of compounding periods, and the time involved.
The formula is as follows: FV = PV x (1 + r/n)^(n*t)where FV = future value, PV = present value (the amount of money Amelia currently has), r = annual interest rate, n = number of times the interest is compounded per year, and t = time in years.
To double her money, Amelia needs to have a future value that is twice her present value. Therefore, we can set FV = 2PV and solve for r.
2PV = PV x (1 + r/n)^(n*t)Dividing both sides by PV, we get:2 = (1 + r/n)^(n*t)
Taking the natural logarithm of both sides, we get: ln(2) = ln[(1 + r/n)^(n*t)]
Using the power rule of logarithms, we can simplify the right side of the equation to ln(2) = (n*t) ln(1 + r/n)
Dividing both sides by (n*t), we get:ln(2) / (n*t) = ln(1 + r/n)
Finally, we can solve for r by raising both sides as the power of e: e^(ln(2) / (n*t)) = 1 + r/n
Subtracting 1 from both sides and multiplying by n, we get:r = n x (e^(ln(2) / (n*t)) - 1)
Plugging in the values given, we get:r = n x (e^(ln(2) / (n*12)) - 1)
We don't know the value of n, so we can try each of the answer choices to see which one gives us a value of r that works.
Using a financial calculator or a spreadsheet program like Excel, we can calculate the values of r for each interest rate.
Using 12 percent: r = 1 x (e^(ln(2) / (1*12)) - 1) = 0.0956 or 9.56 percent
Using 16.6 percent: r = 1 x (e^(ln(2) / (1*12)) - 1) = 0.1407 or 14.07 percent
Using 6 percent: r = 1 x (e^(ln(2) / (1*12)) - 1) = 0.0488 or 4.88 percent
Using 10 percent: r = 1 x (e^(ln(2) / (1*12)) - 1) = 0.0794 or 7.94 percent
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What are some Drawbacks of business Debt?
Answers
Answer:Paying Back the Debt. Making payments to a bank or other lender can be stress-free if you have ample revenue flowing into your business. ...
High Interest Rates.
The Effect on Your Credit Rating.
Cash Flow Difficulties.
Explanation:
Why is pay a valuable part of employee recognition? What are the potential results of not paying employees a competitive salary?
Answers
The payment is a valuable part of the employee's recognition as a legal benefit of the employee's right that enables him to have a favorable financial condition for the development of all areas of his life.
Companies that pay their employees a competitive salary gain greater motivation and productivity from their employees, which makes their work more collaborative and effective, generating several benefits for the organization.
Therefore, considering payment as a valuable part of employee recognition, companies that do not pay a competitive salary can have as potential results demotivation, lack of creativity and productivity, dissatisfaction with work and higher employee turnover.
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Help!
dancing is considered as labor, capital,land or entrepreneurship?
Answers
Answer:
D. Entrepreneurship
Because 100% it's not a land or a capital. Well, it may be a labor, but mostly it's entrepreneurship.
Hope that helps you
12. What information can you find on a job search site? Select all that apply. (2 points)
Experience levels of jobs
Jobs by gender
Jobs by age
Location of jobs
Guarantees of interviews
Answers
The information that can be found on a job search website include:
Experience levels of jobsLocation of jobsWhich details can be found on job sites?Job sites will list several details of the jobs they are advertising including the location of the jobs and the experience level required.
Ths will ensure that the person applying has the necessary information to decide if they are suitable for the role.
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Submission Requirements Hurry Pls Help ASAP!!!
Nine hundred word response.
When submitting written assignments, please remember to:
Submit the assignment question(s) and your responses.
Proofread for spelling, grammar, and punctuation.
Remember complete sentence structure.
Paragraphs need to have minimum of six sentences.
Submit your E.T.H.I.C.S. model of one of the provided scenarios.
Answers
When submitting written assignments, please remember to Proofread for spelling, grammar, and punctuation. Hence, option B is correct.
What is meant by Proofread?Proofread is the double-checking of the written assignment or the work that is being already done to the person. It helps the person to identify the little mistakes that they have made during the making of the assignment.
Proofread is always a better solution to understand the work and makes the work complete and perfect. After Proofread, one can identify their mistakes and make them correct.
Thus, option B is correct.
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A requested tasA requested task is subject to be reported when:
Requesting for a screenshot
When it is asking for 3 proofs
When it requests for email address to be submitted
When it requires payment from the Workers in order to proceed with the taskk is subject to be reported when:
Answers
A requested task is subject to be reported when it requires payment from the Workers in order to proceed with the task. The appropriate response is option D.
What is a task?A task is an action that must be finished by a specific date or time in order to advance professional objectives. It is a minor but crucial task that helps to distinguish between different project components.
Work that needs to be done is referred to as a task, duty, job, chore, stint, or assignment. Task connotes work that is required by an employer, a higher authority figure, or other external factors. assigned a variety of duties. Duty denotes responsibility for performance or an obligation to perform.
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Suppose that in a certain country called Litigia, patients do not have the legal right to sue their medical insurance providers.
Now, suppose, however, that Litigia's government passes legislation that no longer protects medical insurance providers from lawsuits, so that patients in Litigia can now sue their insurance providers.
After the legislation is passed, what will happen to the price of medical insurance and the number of medical insurance policies sold?
The price will decrease, and the number of medical insurance policies sold will also decrease.
The price will increase, while the number of medical insurance policies sold will decrease.
The price will decrease, while the number of medical insurance policies sold will increase.
The price will increase, and the number of medical insurance policies sold will also increase.
Answers
C) The price will decrease, while the number of medical insurance policies sold will increase.
What is legislation?Legislation is the process by which local, state, or federal legislatures draft and enact laws. It is occasionally used to refer to municipal ordinances as well as the rules and regulations passed by administrative bodies while they were performing their delegated legislative duties.
The legislation involves participation from the executive branch in addition to action by a legislative body. Unless the executive's veto is overridden by a large enough majority in each house of the legislature, legislation cannot become law without the executive's concurrence. Additionally, the executive's job involves much more than just consent or opposition.
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During the assessment phase of networking, it’s best to be specific about your business _______.
Doing some research on the key players will help you make the most of business _______ or _______.
Chatting with other people at parties or meetings is a great way to make _______.
When out networking people in _______ naturally gravitate to others.
Based on what you've read, respond to the following.
List two of the qualities that help form a strong foundation for business relationships.
What are two important stages in making business connections?
Answers
1. During the assessment phase of networking, it is best to be specific about your business objectives.
2. Doing some research on the key players will help you make the most of business contacts or opportunities.
3. Chatting with other people at parties or meetings is a great way to make connections.
4. When out networking, people naturally gravitate to others.
Business relationships are an essential aspect of all types of business enterprises, whether large or small. Developing good relationships is vital to the success of any business. Two qualities that help form a strong foundation for business relationships are trust and reliability. These two qualities help establish a sense of honesty, transparency, and consistency in business practices.
Trust and reliability are vital components of business relationships because it creates a safe and comfortable environment for business partners to communicate freely, share ideas, and brainstorm on how to grow the business together. In addition, it provides an avenue for open discussions and sharing of constructive feedback that will help businesses identify areas of improvement.
The two most important stages in making business connections are networking and relationship building. Networking is a critical stage in business development because it enables businesses to build a vast array of contacts that they can leverage to grow their business. Relationship building, on the other hand, focuses on building trust and nurturing relationships with clients, partners, and other stakeholders.
This stage requires a long-term commitment and entails consistent communication and transparency to establish a sense of mutual trust and respect. To conclude, strong business relationships are essential to the success of any business. Building such relationships takes time and effort. Trust and reliability are crucial elements that can help establish a strong foundation for business relationships. Networking and relationship building are two vital stages in making business connections, and they require commitment, time, and effort.
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Sebastian worked 24 hours last week. At a rate of $12 per hour, what was
Sebastian's gross pay? How to solve
Answers
Answer: Sebastian's gross pay was $288.
Explanation:
To calculate Sebastian's gross pay, you would multiply the number of hours he worked by his hourly rate. In this case, Sebastian worked 24 hours and his hourly rate was $12, so his gross pay would be 24 hours * $12/hour = $<<24*12=288>>288.
what behaviors r most common in a successful entrepreneur
Answers
some behaviors from an successful entrepreneur are being open to try new things without question and openly sharing their own opinions
The graphs illustrate an initial equilibrium for the economy. Suppose that the stock market broadly increases.
Use the graphs to show the new positions of aggregate demand (AD), short-run aggregate supply (SRAS), and long-run
aggregate supply (LRAS) in both the short run and the long run, as well as the short-run and long-run equilibriums resulting
from this change. Then, indicate what happens to the price level and real GDP (or aggregate output) in the short run and in the
long run.
Answers
Since the stock market increases broadly, this has the effect of expanding the aggregate demand thus, shifting it rightwards. This consequently leads to an increase in price level and real GDP. See the Short Run Effect Graph.
In the Long Run, given that demand shifted to the right, this created an imbalance between demand and expected price levels.
All things being, equal the laws of demand and supply as it affects price trigger an upward adjustment in price hence creating a new equilibrium point. See the Long Run Effect Graph.
What is aggregate demand?Aggregate demand, also known as domestic final demand in macroeconomics, is the entire demand for final products and services in an economy at any particular time.
It is frequently referred to as effective demand, albeit this phrase is differentiated at times. This is a country's demand for its gross domestic output.
Aggregate demand is estimated by combining consumer expenditure, government and business investment spending, and net imports and exports. AD = C + I + G + Nx is the equation that represents it.
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Suppose you would like to make a global change to the font type and font color for all slides with the comparison layout. Which of the following would be the most efficient way to make this change?
Use Format Painter.
Use Animation Painter.
Use font commands on the Home tab.
Use slide master.
Answers
Answer:
D. Use slide master.
Explanation:
Edge
Warner Brothers Entertainment owns the rights to the intellectual property of the Scooby Doo cartoon show and its characters. A lunchbox menecturer
has reached an agreement with Warner Brothers Entertainment to use the Scooby Doo characters on their new line of lunchboxes. This is an example o
Multiple Choice
contract manufacturing
licensing
creating a subsidiary
franchising
Answers
Option B is the correct one. Using intellectual property rights, such as trademarks, patents, brand names, or technologies, is called licensing. It involves the licenser giving the licensee permission to do so under specific guidelines.
A contract or arrangement between two businesses known as a licensing is one that allows one business to give another permission to produce its goods in exchange for a certain fee and subject to certain terms.
The ability to safeguard a company's valuable assets, such as patents, trademarks, copyrights, and trade secrets, depends on having a solid grasp of how these assets operate and are produced.
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Calcula el interés simple de un capital de $24,000 invertido durante 5 años al 8% anual
Answers
Answer:
End Balance: $33,600.00
Total Interest: $9,600.00
Explanation:
Calculation steps:
Total Interest = $24000 × 8% × 5
= $9,600.00
End Balance = $24000 + $9,600.00
= $33,600.00
State the minimum monthly income, an hourly wage per hour, needed to cover monthly expenses for the family used in part a and explain how to calculate the hourly wage based on the monthly income and state the hourly wage. assume that each full-time worker works four 40 hour work weeks per month and each part time worker works two 40 hour weeks per month.
Answers
Divide wages by using hours and that is your hourly rate. If you work longer hours at positive times of the month, then track your time for a month, and divide your annual pay by way of 12.
How do you calculate hourly charge from monthly income?Get the hours per months = Hours in Year ÷ 12 (months) Get Hourly Pay = Monthly Salary ÷ Hours Per Month.
Daily fee of pay for a monthly-rated employee is calculated the usage of the formulation below: Regular Days Rate of pay = Employee's Monthly Rate of pay / 26 days.
The ADW calculated is the price of pay mirrored in the system. This is the formula used: Total Wage (for the applicable period) / Number of Days (same relevant period)
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https://brainly.com/question/27280083#SPJ1Which of the following constitutes an organizational element in the UPS tracking system described in the chapter?a) a web-based Post Sales Order Management Systemb) promoting the company strategy of low-cost, superior servicec)monitoring service levelsd) the specification of procedures for identifying packages with sender and recipient informatione) he use of handheld computers and networks for managing package delivery
Answers
The specification of procedures for identifying packages with sender and recipient information of the following constitutes an organizational element in the UPS tracking system described in the chapter. The correct option is D.
Why is UPS tracking not showing details?You won't see any movement connected with your tracking number until your package is picked up and scanned by the carrier. When your package moves, you'll be able to track it at UPS.com or USPS.com.
A web-based system that permits you to achieve fully monitor the status of a shipment's delivery. With a tracking number, an import tracking number, a reference, or an e-mail address, you can access tracking information.
Thus, the ideal selection is option D.
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You run a manufacturing facility that makes roller skates. Fixed monthly cost is $50,000 in mortgage, $3,000 per employee on average in salaries (you have 40 employees) and $20,000 in other expenses. The cost of raw materials is $2 per skate, and other costs per skate average to about $1. You sell the skates for $19.95 each.
How many skates must you sell to breakeven?
Define the random variable X.
Express Total Revenue, Fixed Cost, Variable Cost, Total Cost, and Profit in terms of X.
Calculate Breakeven point.
Answers
Answer and Explanation:
The computation is shown below:
Let us assume the Breakeven point be X
Now
Total revenue = $19.95.X
And,
Total cost is
= Total fixed cost + Total variable cost
= $190,000 + 3.X
Also as we know that At Breakeven point,
Total revenue = Total cost
19.95.X = $190,000 + 3.X
16.95.X = $190,000
X = $190,000 ÷ $16.95
= 11,209.43 units
Therefore the break even point is 11,209 units
What is the term for the type of market test that involves selecting an area of the country as a representative sample of the nation's demographics to try out a new product?
Answers
Test marketing is the term for the type of market test that involves selecting an area of the country as a representative sample of the nation's demographics to try out a new product.
What is the name of market research in science?A product or marketing campaign is made restrictedly accessible to test markets before being made widely available to measure consumer response. It's crucial to keep in mind that consumers of the product or target audience for the marketing initiative could unintentionally act as test subjects.
What are some sales forecasting test marketing techniques?Test-marketing analysis is regarded by many businesses as the most accurate way to predict future sales. It entails introducing a good or service to a certain target market or demography depending on your market segmentation. Organizations can then see how the product is received by customers and how it sells.
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the information for preparing a trial balance on a work sheet is obtained from
Answers
The information for preparing a trial balance on a work sheet is obtained from the general ledger accounts.
A trial balance is said to be prepared by using the amounts in the company's general ledger accounts which considers each of the company's ledgers accounts and as well as it tends to include their amounts which is in the total calculation of the trial balance.
So, this Ledger account will tend to include debit or credit amount as per the balance. Thus, the trial balance is said to be prepared after the transactions are first recorded in the journal and then they are subsequently posted in the general ledger.
Hence, trial balance is a part of the accounting process.
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