0.15 0.05 001 -0.03 -0.01 0.09 the expected returns of the two stocks? the standard deviations of the retuns of the two stoc relation is 048, what is the expected retun and stan
Q: Requlred Information Use the following information for the Exercises below. [The following informati...
A: The deprecation expense is charged on fixed assets as reduction in the value of fixed assets with th...
Q: 2. How much manufacturing overhead was applied to Job P and how much was applied to Job Q? (Do not r...
A: First we calculate, predetermined overhead rate Predetermined overhead rate = Estimated total overhe...
Q: Prepare the 2019 revenues budget (in RM). 1) Prepare the 2019 production budget (in unit) 2) Prepa...
A: Slopes, Inc., manufactures and sells snowboards. We are given the estimated production requirement a...
Q: A PP&E asset with an acquisiton cost of $300,000 and accumulated depreciation of $285,000 is sold fo...
A: Gain/(loss) on disposal of fixed asset = Disposal proceeds - (Acquisition cost - Accumulated depreci...
Q: Sales (18,000 units) Varlable expenses Contribution margin Fixed expenses $ 360, 000 144,000 216,000...
A: Formula: Contribution margin ratio = ( Contribution margin / Sales ) x 100
Q: HELLO reported the following items on its December 31, 2020 trial balance: Accounts Payable, P1,089,...
A: Current liabilities: Liabilities that have to be paid within one year or one operating cycle, whiche...
Q: The following pertained to Lomi Inc.: Product Sales Price Unit Variable Co...
A: There are two forms of costs that are being used and incurred by the business. These are known as Va...
Q: Casio Co. sells calculators that carry a one- year warranty against manufacturer's defects. Based on...
A: Total Warranty expense = No. of calculators sold x warranty costs per calculator
Q: According to its original plan, Finch Consulting Services Company plans to charge its customers for ...
A: Revenue is Flexible budget hours × budget hours × service charge - $128 per hour Variable costs is ...
Q: Data for 2020 taxable year of ML partnership (Domestic corporation) including partner's own income (...
A: The calculation is given below
Q: During 2011, Vien Co. introduced a new line of machines that carry a three-year warranty against man...
A: Warranty liability = Total expense recognized - Actual warranty expenditure The question requires ca...
Q: Directions: Complete the table below. The first item has been done 101 List of Accounts Decreased by...
A: Here we are given with different types of accounts. We need to determine what type of account is thi...
Q: On Jan. 1, 2021, Yumi Co. settled a P 1,000,000 loan payable with an unamortized discount of P 20,00...
A: Solution: carrying value of loan = Loan amount - Unamortized discount = P1,000,000 - P20,000 = P980,...
Q: Bond Issued at Par ABC company’s accounting year ends on December 31. On 2010 December 31, ABC issu...
A: Solution Bond issued at par means Issue price =face value If bond is issued at par it means...
Q: Andres Michael bought a new boat. He took out a loan for $24,320 at 4.5% interest for 2 years. He ma...
A:
Q: Inventory at the end of 2021 was overstated. What is its effect net income of year 2022? O Cannot be...
A: Inventory at the end of year 2021 means Inventory at the beginning of year 2022. Beginning Inventory...
Q: On July 1, 2021, Harvest, Inc., acquires 60 percent of Patricia Company for $360,000. The remaining ...
A: Introduction goodwill is considered as intangible assets that is linked with purchasing of one compa...
Q: Micro Tek Inc. is considering an investment in new equipment that will be used to manufacture a smar...
A: Average rate of return = Average annual income / Average investment Where Average investment = (cos...
Q: You are a commercial lines broker, working for an insurance company, explain why you would recommend...
A: Explanation of above requirement are as follows.
Q: Balerio Corporation's relevant range of activity is 8,000 units to 12,000 units. When it produces an...
A: Lets understand the basics. Product cost is a cost which is incurred to manufacture product. This ty...
Q: On January 1, 20x5, Paz acquired 80% of Shey outstanding ordinary shares for P950,000. Paz uses the ...
A: While preparing the consolidated balance sheet, the total assets of the acquired and acquirer compan...
Q: Clara Company purchased equipment for P5,000,000 on January 1, 2021 with a useful life of 10 years a...
A: Introduction Decrease in value of assets due to obsolete and old condition this decrease in asset ca...
Q: A company sells three different products.The following inventory information is available on Decembe...
A: Inventory - Inventory is the value of assets held by the company not sold during the year. It is the...
Q: tions Balance per bank $14,385 Balance per company records 11,200 Bank service charges 60 Deposit in...
A: A bank reconciliation statement is a summary of business and corporate operations that reconciles th...
Q: Graff Company had the following data for the month of November: Graff, Capital, November 1 = $10,000...
A: Formula: Ending capital = Beginning capital + Net income - Withdrawals
Q: A company that operates within a country whose legal system and laws relating to dividend policy are...
A: b. Increase plowback ratio
Q: Recover Co. has the following assets: Land used as plant site 50,000 Land and building classified as...
A: Assets that is classified as property,plant and equipment are as under. Correct answer is option (b)...
Q: Based upon the provided information, how would I be able to calculate the Amortization of prior serv...
A: ANSWER 1.) Calculation of Amortization Amortization of Prior service cost = 2 million ( is already g...
Q: Accounting Jeff Andringa, a former university hockey player, started Ice Camp Ltd., a hockey camp fo...
A: Ledger The preparation of ledger to understand the ending balance of the each account which are inv...
Q: Suppose you are a bank loan manager. Your target EAR is 5%. Now, you are required to offer bank loan...
A: Calculation of monthly instalment for 3 years Customer want to Borrow- $ 1,000,000 EAR - 5 % Month ...
Q: Analyze the statement of cash flow for the year 2020 and compare it with the year 2019. Identify and...
A: The cash flow statement can be used to analyze the financial health of an entity. The three importan...
Q: Prepare a budgeted income statement using the information shown. Sales (units) Sales price per unit ...
A: A budgeted income statement is a financial report that details the expected profit, revenue, and cos...
Q: Beginning inventory consist of 800 units at P200 each. Purchases made for the period: January 18 for...
A: Total cost = Cost per unit * Number of units The question requires purchase cost of goods purchased ...
Q: A.comply with the buyer's request. B.advise the seller to accept the offer for $140,000. C.tell ...
A: Broker obtains 120 days listing for $ 150000 on property. Broker acting as sub agent for seller Bro...
Q: The "Budget" column of a flexible budget report reflects: budgeted costs at the budgeted level of ac...
A: Solution Concept Flexible budget Flexible budget is a budget which is prepared by changing the varia...
Q: Tulips Companý has a DSO of 40 days, and its annual sales are P7,300,000. What is its accounts recei...
A: ANSWER 1)DSO=40 ANNUAL SALES=7300000 NUMBER OF DAYS IN A YEAR=365 DSO = (ACCOUNT RECEIVABLE/ANNUAL S...
Q: company purchased factory equipment on April 1, 2017, for $128,000 and placed it into service on tha...
A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets ...
Q: The following data of the industrial enterprise D S.A. for the accounting year 20X9 are given. Ra...
A: For production and manufacturing of goods, various type of costs needs to be incurred. These can be ...
Q: On 3/1, a company buys $5,000 of merchandise with terms 2/10, n/15. On 3/7, the company returns $500...
A: >Journal entries are used to record transaction.>Purchase transaction is recorded byDebiting I...
Q: Assuming the Parent entity elects to measure the NCI at proportionate basis, the computation of non-...
A: Non controlling interest (NCI) : A non-controlling interest, also known as a minority interest, is a...
Q: A company owns earth moving equipment that cost P100,000. After 8 years it will have estimated Salva...
A: Depreciation: It is the allocation of cost of a tangible or physical asset over its useful life It...
Q: Consider a 15 year 6.5% semi-annual coupon bond whose duration is approx. 9.50 years when required r...
A: Immunization of bond is used whenever the risk of the investor for the interest rate risk is to be r...
Q: According to GAAP, interest cost incurred to finance construction of an asset must be capitalized in...
A: As per US GAAP on Capitalised Interest, interest costs that are directly attributable to the acquisi...
Q: Calculate annual depreciation (straight line): $ Calculate depreciation for the year of sale. S Reco...
A: the acquisition cost of the mower $8000 life 4 years depreciation expenses per year 8000/4= 2000 (a...
Q: PROBLEM 18.2A Computing and Using Unit Costs LO18-2, LO18-3, O LO18-4, @ LO18-5 One of Spa Magic's p...
A: Answer:- Cost of production report:- Cost of production report is a kind of document which is basic...
Q: On August 31 of the current year, the S election of Station thus creating an eight-month S short yea...
A: The short tax year is a calendar tax or the fiscal tax year which is less than the 12 months period....
Q: Magic Mountain accounts for revenues using the contract-based approach. It operates a ski resort in ...
A: As per IFRS matching principal when the revenue is recognised the.related expenses to be also recogn...
Q: Journal Entries: Repairs, Maintenance, Additions, Improvements, and Replacements Prepare the entries...
A: Solution Concept The expenses incurred if they improve the efficiency and provide the future economi...
Q: 0,000 and have no residual value. If the straight-line depreciation method is used and the average r...
A: Average rate of return is the percent of return earned on the investment, It is calculated by divid...
Q: Sydney Retailing (buyer) and Troy Wholesalers (seller) enter into the following transactions. May 11...
A: To maintain track of financial transactions, journal entries are utilized. You create a journal entr...
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- An analyst has modeled the stock of a company using the Fama-French three-factor model. The market return is 10%, the return on the SMB portfolio (rSMB) is 3.2%, and the return on the HML portfolio (rHML) is 4.8%. If ai = 0, bi = 1.2, ci = 20.4, and di = 1.3, what is the stock’s predicted return?Consider information given in the table below and answers the question asked thereafter: State Probability return on stock A Return on stock B A 0.15 10% 9% B 0.15 6% 15% C 0.10 20% 10% D 0.18 5% -8% E 0.12 -10% 20% F 0.30 8% 5% i. Calculate expected return on each stock? On the basis of this measure, which stockyou will choose?ii. Calculate standard deviation of the returns on each stock? On the basis of thismeasure, which stock you will choose?iii. Calculate coefficient of variance of the returns on each stock? On the basis of thismeasure, which stock you will choose?The index model has been estimated for stocks A and B with the following results: RA 0.01 +0.5RM + A RB = 0.02 +1.3RM + eB standard deviation of the market is 0.25, standard deviation of eA is 0.2 and standard deviation of eB is 0.10 What is the covariance betwween the returns on stocks A and B?.
- Syntex, Inc. is considering an investment in one of two common stocks. Given the information that follows, which investment is better, based on the risk (as measured by the standard deviation) and return? Common Stock A Common Stock B Probability Return Probability Return 0.25 13% 0.25 −7% 0.50 14% 0.25 7% 0.25 18% 0.25 16% 0.25 23% (Click on the icon in order to copy its contents into a spreadsheet.) Question content area bottom Part 1 a. Given the information in the table, the expected rate of return for stock A is enter your response here %. (Round to two decimal places.) Part 2 The standard deviation of stock A is enter your response here %. (Round to two decimal places.) Part 3 b. The expected rate of return for stock B is enter your response here %. (Round to two decimal places.) Part 4 The standard deviation for stock B is enter…You are given the following probability distribution of returns for a stock. Use the data to calculate the expected return, standard deviation of returns, and coefficient of variation of returns for the stock. Report the CV to 4 decimal places (13.36% = 0.1336). Return Probability 8.0% 0.20 10.0% 0.10 12.0% 0.40 15.0% 0.20 16.0% 0.10The market and Stock J have the following probability distributions: Probability rM rJ 0.3 15.00 % 19.00 % 0.4 10.00 6.00 0.3 18.00 10.00 The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. Open spreadsheet Calculate the expected rate of return for the market. Do not round intermediate calculations. Round your answer to two decimal places.fill in the blank %Calculate the expected rate of return for Stock J. Do not round intermediate calculations. Round your answer to two decimal places.fill in the blank % Calculate the standard deviation for the market. Do not round intermediate calculations. Round your answer to two decimal places.fill in the blank %Calculate the standard deviation for Stock J. Do not round intermediate calculations. Round your answer to two decimal places.fill in the blank %
- Syntex, Inc. is considering an investment in one of two common stocks. Given the information that follows, which investment is better, based on the risk (as measured by the standard deviation) and return? Common Stock A Common Stock B Probability Return Probability Return 0.35 13% 0.25 −7% 0.30 17% 0.25 8% 0.35 21% 0.25 15% 0.25 23% (Click on the icon in order to copy its contents into a spreadsheet.) Question content area bottom Part 1 a. Given the information in the table, the expected rate of return for stock A is enter your response here%. (Round to two decimal places.)Ahmed observed the following data of two stocks as shown in the below table. Which stock do you advise Ahmed to select according to the required rate of return? And explain why? Stock A Stock B Market Standard Deviation Return 30% 30% 22% Correlation Coefficient between A & M -30% Correlation Coefficient between B & M 30% Expected Market Return 11% Risk-Free rate of return 5%Suppose that you would like to create composite indexes from three stocks: stk1, stk2, stk3. Their stock prices (Pt) and total shares outstanding (Qt) from day 0 to day 1 are shown as follows: stk3 splits two-for-one in day 1. P0 Q0 P1 Q1 stk1 40 100 50 100 stk2 50 200 50 200 stk3 60 150 50 300 Which answer is the closest value to the rate of return on a value-weighted index of the three stocks? A. 20% B. 25% C. 30% D. 35%
- The following information describes the expected return and risk relationship for the stocks of two of WAH’s competitors. Stock X 12.0% 20% 1.3 Stock Y 9.0 15 0.7 Market Index 10.0 12 1.0 Risk-free rate 5.0 Using only the data shown in the preceding table: Draw and label a graph showing the security market line, and position Stocks X and Y relative to it. Compute the alphas both for Stock X and for Stock Y. Show your work. Assume that the risk-free rate increases to 7 percent, with the other data in the preceding matrix remaining unchanged. Select the stock providing the higher expected risk adjusted return and justify your selection. Show your calculations.the following table shows the beta and expected return for each of five stocks. Stocks Beta Expected return 1 1.2 0.124 2 1.0 0.110 3 0.7 0.103 4 0.4 0.068 5 0.1 0.047 All of these stocks except one lie on the Security Market Line. Required: Calculate the alpha of the stock that does NOT lie on the Security Market Line.You are given the following information regarding prices for a sample of stocks.a. Construct a price-weighted index for these three stocks, and compute the percentagechange in the index for the period from T to T + 1. b. Construct a value-weighted index for these three stocks, and compute the percentagechange in the index for the period from T to T + 1. c. Briefly discuss the difference in the results for the two indexes.