Inspection costs at one of Ratulowski Corporation's factories are listed below: Units ProducedInspection CostsApril 906? $16,312? May 951? $16,700? June 912? $16,365? July 896? $16,210? August 918? $16,394? September 903? $16,280? October 920? $16,432? November 860? $15,850? December 899? $16,238? Management believes that inspection cost is a mixed cost that depends on units produced.Using the high-low method, the estimate of the fixed component of inspection cost per month is closest to: (Round your intermediate calculations to 2 decimal places.)
A. $16,220.00
B. $16,211.00
C. $7817.66
D. $15,851.00
Answer: C
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An investor wishes to construct a portfolio by borrowing 35% of his original wealth and investing all the money in a stock index. The return on the risk-free asset is 4.0% and the expected return on the stock index is 15%. Calculate the expected return on the portfolio
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