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1 year ago

Which investment has the least amount of risk?

Business

1 answer:

exis [7]1 year ago

5 0

Answer:

A. standard deviation = $500, expected return = $5,000

Explanation:

For analysis which investment involved the least amount of risk we need to determine the coefficient of variation i.e. shown below:

As we know that

Coefficient of variance = standard deviation ÷ expected return

A = $500 ÷ $5,000 = 0.10

B = $700 ÷ $500 = 1.40

C = $900 ÷ $800 = 1.125

D = $400 ÷ 350 = 1.143

As it can be seen that investment A has the leas amount of risk hence, the same is to be considered

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If bagels and doughnuts are substitute goods, then which scenario is likely to occur if the price of bagels is reduced?

katen-ka-za [31]

Answer: If the price of bagels is reduced "a.The demand curve for doughnuts will shift to the left."

Explanation: Being substitute goods The decrease in the price of bagels causes consumers to prefer to consume bagets before donating, therefore the demand for donuts will shift to the left (decrease).

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1 year ago

Show Me How On February 22, Stewart Corporation acquired 12,000 shares of the 400,000 outstanding shares of Edwards Co. common s

Cerrena [4.2K]

Answer:

Explanation:

The journal entries are shown below:

1. Investment in shares of Edwards Co A/c Dr $600,120

To Cash A/c $600,120

(Being the purchase of stock is made)

The investment is computed below:

= Number of shares acquired × par value of common stock + commission charges

= 12,000 shares × $50 + $120

= $600,120

2. Cash A/c Dr $16,800

To Dividend A/c $16,800

(Being dividend received is recorded)

The receipt of dividend is shown below:

= Number of shares × cash dividend per share

= 12,000 shares × $1.40

= $16,800

3. Cash A/c Dr $247,900

To Profit on sale $47,860

To Investment in shares of Edwards Co A/c $200,040

(Being sale of shares is recorded and the remaining amount is credited to the profit)

The computation of this above entry is shown below:

Cash Account = Number of shares sold × par value of common stock - commission charges

= $4,000 × $62 - $100

= $247,900

Profit on sale = (Purchase of stock ÷ Number of shares acquired) × Number of shares sold

= ($600,120 ÷ 12,000) shares × 4,000 shares

= $200,040

8 0

1 year ago

Daisy Company manufactures dog collars. The following selected data relates to Daisy? Company's budgeted sales and inventory lev

Allushta [10]

Answer:

<u>Hence, 2,140 units are to be produced in November.</u>

Explanation:

November unit sales=2,300

Add: November desired ending unit finished goods inventory=720

Less: November beginning finished goods inventory (October ending inventory)=(880)

Units to be produced in November=2300+720-880=2,140

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2 years ago

Suppose that cookie producers create a positive externality equal to $2 per dozen. What is the relationship between the equilibr

yaroslaw [1]

Answer:

c. The equilibrium quantity is less than the socially optimal quantity.

Explanation:

Externalities are positive / negative side effects to other parties, which are not monetarily valued & compensated.

Positive Externalities cause extra positive side effect, have extra social benefit apart from private benefit. Their free market unregulated equilibrium under estimates their Total Benefit (considering only private benefit , ignoring social benefit). So the equilibrium quantity is also under estimated. Hence, Equilibrium quantity is less than socially optimal quantity.

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1 year ago

The Harriet Hotel in downtown Boston has 100 rooms that rent for $150 per night. It costs the hotel $30 per room in variable cos

Effectus [21]

Answer:

In order to maximize average daily profit, optimal number of reservations = 100 rooms.

Explanation:

As for the provided information, we have

Total number of rooms = 100

Chances of guests not arriving = 5%

Therefore, guests to arrive = 95%

Thus, bookings = 100/95% = 105.26

Rounding off we have 105 rooms,

Let us assume, all rooms are booked and no cancellation is done, in that case,

Total revenue = $150 $\times$ 100 = $15,000

Less: Overbooked charges = $200 $\times$ 5 = ($1,000)

Less: Variable Cost = $30 $\times$ 100 = ($3,000)

Thus total revenue will be $11,000

In case of booking of 100 rooms the net revenue in case of 5% cancellations, shall be:

Rooms booked = 100 - 5% = 95

Revenue = 95 $\times$ $150 = $14,250

Less: Variable Costs = 95 $\times$ $30 = ($2,850)

Thus total revenue = $11,400

Since profit in case of booking 100 rooms is more in any case, even in case of least cancellation the revenue will increase.

Thus, this is the optimal number of reservations = 100

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1 year ago