User Account

All Pages

Calculate the total variance for an increase

Assignment Help Accounting Basics
Reference no: EM133164383

Question - The standard deviation of the market-index portfolio is 20%. Stock A has a beta of 2.80 and a residual standard deviation of 30%.

a. Calculate the total variance for an increase of 0.25 in its beta.

b. Calculate the total variance for an increase of 8.54% (percentage points) in its residual standard deviation.

Reference no: EM133164383

Questions Cloud

How much will be the value of the annuity : If in 1) payments are made in the beginning of the year, how much will be the value of the annuity assuming that interest rate is 8% in each case
Compute the company net cash used in investing activities : It did not sell or retire any property, plant, and equipment during the year. Compute the company net cash used in investing activities
Calculate the fixed administrative cost variance : Calculate the fixed administrative cost variance and indicate whether it is Favorable (F) or Unfavorable (U)
What is the breakeven point in units : Assume a sales price per unit of $20, variable cost per unit $15, and total fixed costs of $23040. What is the breakeven point in units
Calculate the total variance for an increase : The standard deviation of the market-index portfolio is 20%. Calculate the total variance for an increase of 8.54% (percentage points)
Terminate patient from the physician practice : In general, with proper notice, a physician can terminate a patient from the physician's practice.
Open the allowance for bad debts account for the year : On 1 January 2020 the amount for this brought forward from the previous year was P320. Open the allowance for bad debts account for the year
Franchises fast-food mexican restaurant : Carlos Del Rey decided to open a fast-food Mexican restaurant and signed a franchise contract with a national chain called La Grande Enchilada.
Determine the variable cost per unit : Determine the variable cost per unit and the total fixed cost for the cost item/(s) identified in 6.1 as amixed cost. Use the high-low method

Reviews

Write a Review

Accounting Basics Questions & Answers

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions for the period 1 July 2017 to 30 September 2019. Willis Ltd's financial year ends on 30 June annually

  How much is the gain loss on repossession

ABC Company. uses instalment sales method Of accounting. During the year, a buyer defaulted on an instalment sale leaving ABC Co with no other choice.

  Research erp to determine what its purpose is

Research ERP to determine what its purpose is. Also, determine what problems have been encountered when different companies in different industries have implemented this kind of system.

  Estimate Larson inc sales revenues from this model

Due to changes in prices, the new price for the daypacks will be $88. Estimate Larson inc sales revenues from this model of backpack for the coming year

  How much is the unrealized gain in the profit or loss

The fair value of this investment is P95,000 as of December 31, 2021. How much is the unrealized gain(loss) in the profit or loss statement for the year 2020

  Determine the consolidated inventory at year-end

Parent and Subsidiary also report ending inventory of P75,000 and P60,000, each respectively. Determine the consolidated inventory at year-end

  What total amount should be accrued as provision

Regal Company has several contingent liabilities on December 31, 2019. What total amount should be accrued as provision on December 31, 2019

  What is the percentage change in the price of this bond

A 16-year, 4.5 percent coupon bond pays interest annually. The bond has a face value of £1,000. What is the percentage change in the price of this bond

  Prepare a partial balance sheet for pollard corporation

Prepare a partial balance sheet for Pollard Corporation, showing the manner in which the above liabilities should be presented at December 31, 2017

  Who among the partners has the smallest capital contribution

Profits and losses are to be shared equally but is silent regarding capital contributions. Who among the partners has the smallest capital contribution?

  Problem related to drop in sales

Company sells a single product at $20 per unit. Sales- 100,000, variable costs $800,000, fixed costs $400,000 If a $4 drop in selling price will boost unit sales by 20% the company will experience:

  Discuss the merits and risks of kgc ltd

HI6025 Accounting Theory and Current Issue Assignment. Should KGC Ltd. revalue its major PPE assets from historic cost to fair-market value? (Discuss the principles, potential issues, and risks). Discuss the merits and risks of KGC Ltd. including a..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd