The portfolio with the lowest standard deviation for any risk premium is called the_______.
A. CAL portfolio
B. efficient frontier portfolio
C. global minimum variance portfolio
D. optimal risky portfolio
C. global minimum variance portfolio
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Which of the following is required to establish negligence?
A) It was reasonably foreseeable that the plaintiff would be injured by the defendant's act. B) The plaintiff failed to do what a reasonable person would have done in the circumstances. C) The failure to act reasonably caused the plaintiff's injury. D) The defendant failed to do what a reasonable person would have done under the circumstances. E) A, C and D
Alpha Company has assets of $640,000, liabilities of $270,000, and equity of $370,000. It buys office equipment on credit for $95,000. What would be the effects of this transaction on the accounting equation?
A. Assets decrease by $95,000 and expenses decrease by $95,000. B. Liabilities increase by $95,000 and expenses decrease by $95,000. C. Assets increase by $95,000 and liabilities increase by $95,000. D. Assets increase by $95,000 and expenses increase by $95,000. E. Assets increase by $95,000 and expenses decrease by $95,000.
Inacio Corporation uses the weighted-average method in its process costing system. Data concerning the first processing department for the most recent month are listed below: Beginning work in process inventory: Units in beginning work in process inventory 800 Materials costs$12,900 Conversion costs$5,000 Percent complete with respect to materials 75%Percent complete with respect to conversion 20%Units started into production during the month 9,500 Units transferred to the next department during the month 8,400 Materials costs added during the month$172,000 Conversion costs added during the month$240,200 Ending work in process inventory: Units in ending work in process inventory 1,900 Percent complete with respect to materials 90%Percent complete with
respect to conversion 30% The cost per equivalent unit for materials for the month in the first processing department is closest to: A. $16.70 B. $17.01 C. $17.95 D. $18.29
Hawthorn Corporation has provided the following information concerning a capital budgeting project: Investment required in equipment$510,000 Net annual operating cash inflow$240,000 One-time renovation expense in year 2$60,000 Tax rate 30%After-tax discount rate 7%The expected life of the project and the equipment is 3 years and the equipment has zero salvage value. The company uses straight-line depreciation on all equipment and the depreciation expense on the equipment would be $170,000 per year. Assume cash flows occur at the end of the year except for the initial investments. The company takes income taxes into account in its capital budgeting. The net annual operating cash inflow is the difference between the incremental sales revenue and incremental cash operating
expenses. Required:Determine the net present value of the project. Show your work! What will be an ideal response?