On december 31, 2010, exxon bought an oil rig in texas for $100 million. At purchase, the rig had a life span of 10 years with no residual value. On december 31, 2015, the rig will have a book rate of return of 60%. How much profit will the rig generate by the end of 2015?.

Answers

Answer 1

The rig will generate a profit of $10 million by the end of 2015.

To calculate the profit generated by the rig, we need to calculate its accumulated depreciation by the end of 2015, which can be calculated as follows:

Annual depreciation = Cost of the rig / Life span of the rig

Annual depreciation = $100 million / 10 years

Annual depreciation = $10 million

Accumulated depreciation by the end of 2015 = Annual depreciation x Number of years

Accumulated depreciation by the end of 2015 = $10 million x 5 years

Accumulated depreciation by the end of 2015 = $50 million

The book value of the rig by the end of 2015 can be calculated as follows:

Book value of the rig = Cost of the rig - Accumulated depreciation

Book value of the rig = $100 million - $50 million

Book value of the rig = $50 million

Since the rig will have a book rate of return of 60% by the end of 2015, its market value will be 60% of its original cost, which is:

Market value of the rig = 60% x $100 million

Market value of the rig = $60 million

The profit generated by the rig by the end of 2015 can be calculated as follows:

Profit = Market value of the rig - Book value of the rig

Profit = $60 million - $50 million

Profit = $10 million

Therefore, the rig will generate a profit of $10 million by the end of 2015.

To know more about profit refer to-

https://brainly.com/question/15036999

#SPJ11


Related Questions

A _______________ structure refers to the chain of command of a corporation, usually from senior management and executives to the general staff.

Answers

A hierarchical structure refers to the chain of command of a corporation, usually from senior management and executives to the general staff.

This means that there is a clear and defined organizational structure with specific roles and responsibilities for each level of the company. The hierarchy is based on the principle of authority, where those in higher positions have more power and control over those in lower positions.

In a hierarchical structure, decisions are made by those in higher positions and are then communicated down the chain of command. This structure is common in large, complex organizations where there are multiple layers of management and a need for clear lines of communication and accountability.

While a hierarchical structure can be effective for certain types of organizations, it can also be rigid and slow to adapt to change. This is why some companies have moved towards flatter organizational structures where there are fewer levels of management and a greater emphasis on collaboration and flexibility.

For more about hierarchical structure:

https://brainly.com/question/29620982

#SPJ11

I formulate a linear optimization problem. I am told that the shadow price of one of my constraints is 10. This is the only information I have from the sensitivity report for this problem. Which of the following statement is true?
a) If I increase the right-hand side of this constraint within the allowable increase, the optimal objective value increases. b) If I decrease the right-hand side of this constraint, I always need to resolve the problem in order to evaluate the change in the optimal objective value. c) If I increase the right-hand side of this constraint, the optimal solution is unchanged. d) I don't have enough information to conclude that any of these statements are true.

Answers

In a linear optimization problem where shadow price of one of constraints is 10, the statement which is true is if ‘I increase the right-hand side of this constraint within the allowable increase, the optimal objective value increases’. Therefore, the correct option is A.

The shadow price of a constraint represents the rate at which the optimal objective function value changes with respect to a small increase in the right-hand side of the constraint. A positive shadow price means that if the constraint is relaxed (i.e., its right-hand side is increased), the optimal objective value will increase.

Therefore, the true statement about the linear optimization problem is A: If I increase the right-hand side of this constraint within the allowable increase, the optimal objective value increases. This is true because the shadow price of the constraint is 10, which indicates that for each unit increase in the right-hand side of the constraint, the optimal objective value will increase by 10 units, as long as it remains within the allowable increase range.

Statement b) is not always true since it depends on whether the relaxed constraint becomes binding or not. Statement c) is not true because increasing the right-hand side of a constraint can lead to a different optimal solution if other constraints become binding. Statement d) is not true because we have enough information about the shadow price to make a conclusion.

Learn more about Shadow price:

https://brainly.com/question/14940620

#SPJ11

How did the automobile industry develop in california?.

Answers

The automobile industry developed in California in the early 1900s due to several factors. First, California had a rapidly growing population and a booming economy, which created a large market for automobiles. Second, the state had a well-developed transportation infrastructure, including an extensive network of roads and highways, which made it easier for people to travel by car. Third, California had a favorable climate that allowed people to enjoy driving year-round.

In addition, California was home to several major automobile manufacturers, including Ford, General Motors, and Chrysler, which established assembly plants in the state. These manufacturers were attracted to California because of its large market, favorable business climate, and access to raw materials and transportation networks.

The automobile industry in California continued to grow throughout the 20th century, fueled by innovation, technological advancements, and changing consumer preferences. Today, California is one of the largest automotive markets in the world, with a thriving industry that includes manufacturing, research and development, and retail sales.

the owner's grandfather bought vacant land in the city 85 years ago for $150,000 on which the new dealership could be built. however, 7-eleven has made the owner an offer to buy the land for $300,000 if he decides not to build a dealership on the site. it would cost $800,000 to build the dealership. what would the initial investment (cash flow in year 0) be for purposes of calculating whether or not to build the dealership?

Answers

If the owner's grandfather bought vacant land in the city 85 years ago for $150,000 on which the new dealership could be built. the initial investment for the dealership project would be $950,000.

The initial investment or cash flow in year 0 for the dealership project would include the cost of building the dealership and the opportunity cost of selling the land to 7-eleven. The cost of building the dealership is $800,000, which represents the cash outflow for the project.

The opportunity cost of selling the land to 7-eleven is the difference between the value of the land today and the value of the land 85 years ago when the owner's grandfather bought it. The land was bought for $150,000, but it is currently valued at $300,000. Therefore, the opportunity cost of selling the land to 7-eleven would be $150,000.

Thus, the initial investment or cash flow in year 0 would be the sum of the cost of building the dealership and the opportunity cost of selling the land to 7-eleven:

Initial investment = $800,000 + $150,000 = $950,000

To learn more about dealership click on,

https://brainly.com/question/29129071

#SPJ4

seller pruitt signed an exclusive right-to-sell listing with broker cook. the listing includes a 7% commission and a clause which states that this agreement is in effect until the house is sold. is this legal?

Answers

Seller pruitt signed an exclusive right-to-sell listing with broker cook. But the agreement is not legal because the term is potentially indefinite. The right answer is 2.

When you say something is indefinite, you're saying that no one knows when it will stop. Contracts with no end date are referred to as indefinite contracts. A sort of real estate listing agreement between a house seller and a broker or real estate agent is an exclusive-right-to-sell agreement.

By representing the owner and locating a qualified buyer for the property, the broker or real estate agent has the sole right to receive a commission for the sale of the property under this type of listing agreement. It is the contract that is used the most frequently when selling and listing a house.

The correct answer is option 2.

Know more about right-to-sell here

https://brainly.com/question/28221433

#SPJ4

The question seems incomplete. The complete question is:

Seller Pruitt signed an exclusive right-to-sell listing with Broker Cook. The listing includes a 7% commission and a clause which states that this agreement is in effect until the house is sold. Is this legal?

1. no, because the commission was over 6%

2. no, because the term is potentially indefinite

3. yes, if it is a multiple listing

4. yes, assuming all other elements are satisfied

What kind of behavior controls will best facilitate positive interactions both within the teams and among the teams?

Answers

To facilitate positive interactions within and among teams, it is important to establish behavior controls that encourage collaboration, open communication, and a supportive work environment. Here are some behavior controls that can help:

1. Clearly defined goals and expectations: Ensure that all team members understand their roles and responsibilities, as well as the goals and expectations of the team as a whole. This will help to avoid confusion and conflicts.

2. Regular feedback and communication: Encourage open and regular communication among team members and provide feedback to team members on their performance. This will help to identify and address any issues or conflicts that arise in a timely manner.

3. Team building activities: Plan team-building activities that foster a positive and supportive work environment. These activities can include team lunches, off-site retreats, or team-building exercises.

4. Positive reinforcement: Provide positive reinforcement to team members who exhibit desirable behaviors, such as cooperation, collaboration, and problem-solving skills. This will encourage these behaviors and help to reinforce a positive work culture.

5. Conflict resolution strategies: Establish strategies for resolving conflicts that may arise within or among teams. This can include techniques for constructive feedback, mediation, or other methods that help to de-escalate conflicts and promote positive interactions.

Overall, behavior controls that focus on communication, collaboration, and support will help to create a positive work environment and facilitate positive interactions both within and among teams.
To know more about positive interaction , refer here :

https://brainly.com/question/29783249#

#SPJ11

Prepare tiker company's journal entries to record the following transactions and the adjusting entry to record the fair value of the stock investments portfolio. this is the first and only time the company purchased such securities.

may 9 purchases 440 shares of higo stock as a short-term investment at a cost of $49 per share. tiker has insignificant influence over higo.
june 2 sells 200 shares of its investment in higo stock ($9,800 cost) at $52 per share.
december 31 the closing market price (fair value) of the higo stock is $47 per share.

Answers

The adjusting entry for the fair value of the stock investment portfolio will increase the unrealized loss on investment in Higo stock by the same amount as the decrease in the fair value of the stock investment portfolio. This is because the company is required to adjust the value of its investment in Higo stock to reflect the current market value at the end of the accounting period.

The journal entries to record the transactions and the adjusting entry for Tiker Company:

May 9:
Short-term investment in Higo stock: 21,560 (440 shares x $49)
Cash: 21,560

June 2:
Cash: 10,400 (200 shares x $52)
Realized gain on sale of investment: 600 [($52 - $49) x 200 shares]
Short-term investment in Higo stock: 9,800
Unrealized gain on an investment in Higo stock: 600

December 31:
Short-term investment in Higo stock: 20,680 (440 shares x $47)
Unrealized loss on investment in Higo stock: 880 [($47 - $49) x 440 shares]

Adjusting entry for the fair value of stock investment portfolio:
Unrealized loss on investment in Higo stock: 880
Fair value adjustment - investment in Higo stock: 880

Learn more about Journal entries: https://brainly.com/question/28390337

#SPJ11

The SAFe Scrum Master role includes responsibilities to which other group?

o Business owners

o Solution Management

o Solution Train Engineers

o The other Agile Teams on the Agile release train (ART)

Answers

The SAFe Scrum Master role includes responsibilities towards the other Agile Teams on the Agile Release Train (ART). So, correct option is D.

The Agile Release Train is a collection of Agile teams that work together to deliver a product increment during a fixed time frame known as a Program Increment (PI). The Scrum Master in the SAFe framework plays a crucial role in facilitating the Agile processes for the team and helping to remove any impediments that are blocking the team's progress.

The Scrum Master collaborates with the other Scrum Masters on the ART to help manage cross-team dependencies and ensure that the teams are working towards a shared goal.

The Scrum Master also participates in Scrum of Scrums meetings, where representatives from each Agile team on the ART discuss progress, impediments, and other issues affecting the overall delivery of the product increment.

Therefore, the SAFe Scrum Master role has a significant responsibility towards the other Agile teams on the ART to ensure effective collaboration and timely delivery of product increments.

So, correct option is D.

To learn more about Scrum Master click on,

https://brainly.com/question/30641768

#SPJ4

Elasticity of savings can best be found by _________________________________________. Select all that apply: dividing the percentage change in interest rate by the percentage change in financial savings the shape of the demand curve for financial capital determining the percentage change in the quantity of savings divided by the percentage change in interest rates None of these

Answers

The elasticity of savings can best be found by determining the percentage change in the quantity of savings divided by the percentage change in interest rates. This method helps to measure the responsiveness of savings to changes in interest rates. In other words, it indicates how sensitive the amount of savings is to changes in the interest rate.

To calculate the elasticity of savings, follow these steps:

1. Find the initial quantity of savings and the initial interest rate.


2. Calculate the new quantity of savings and the new interest rate after a change occurs.


3. Determine the percentage change in the quantity of savings by subtracting the initial quantity of savings from the new quantity of savings, dividing the result by the initial quantity of savings, and then multiplying by 100.


4. Determine the percentage change in the interest rate by subtracting the initial interest rate from the new interest rate, dividing the result by the initial interest rate, and then multiplying by 100.


5. Finally, divide the percentage change in the quantity of savings by the percentage change in interest rates to find the elasticity of savings.

This method is preferred because it accurately measures the responsiveness of savings to changes in interest rates, allowing for a better understanding of how people adjust their savings behavior in response to changes in the financial market.

The shape of the demand curve for financial capital is not relevant in this context, as it pertains to the relationship between the price of capital and the quantity demanded. Therefore, the correct answer is determining the percentage change in the quantity of savings divided by the percentage change in interest rates.

To know more about Elasticity refer here:

https://brainly.com/question/29038442#

#SPJ11

Gaetana is the new marketing director for a local theater. One of her


major responsibilities is to monitor and manage aspects of the theater's


immediate environment.


Discuss, in detail, what and how will Gaetana monitor and manage


the four factors in her environment?

Answers

As the marketing director of a local theater, Gaetana will need to monitor and manage the four factors in her environment: economic, technological, social, and competitive.

1. Economic environment: Gaetana should monitor the economic environment, including economic indicators such as inflation rates, interest rates, and consumer spending. She should keep track of changes in the local economy and adjust the theater's marketing strategies accordingly. For example, if the economy is doing well, Gaetana may consider increasing ticket prices and investing in new marketing initiatives.

2. Technological environment: Gaetana should also monitor the technological environment, including advancements in ticketing systems, social media, and digital marketing. She should identify opportunities to incorporate new technologies into the theater's marketing strategy, such as using social media to promote upcoming shows or implementing an online ticketing system.

3. Social environment: Gaetana should monitor the social environment, including trends in demographics and cultural preferences. She should analyze the theater's target audience and adapt marketing strategies to appeal to their preferences. For example, if the theater's target audience is primarily younger, tech-savvy individuals, Gaetana may consider investing in social media marketing campaigns to reach this demographic.

4. Competitive environment: Gaetana should also monitor the competitive environment, including the actions of other theaters and cultural venues in the area. She should identify the theater's strengths and weaknesses relative to the competition and develop strategies to differentiate the theater and increase its competitive advantage. For example, Gaetana may consider offering unique performances or collaborating with local artists to differentiate the theater from other cultural venues in the area.

Overall, Gaetana's success as a marketing director will depend on her ability to closely monitor and manage these four factors in the theater's environment and adapt the theater's marketing strategies accordingly.

learn more about marketing director here:

https://brainly.com/question/14276230

#SPJ11

1. Suppose a firm can hire workers for $40 per hour. The marginal product of the last worker hired is 80. This same firm can pay $60 to rent machines that do the same work as labor but at a higher rate of productivity. The marginal product of the last machine is 100. Is this firm at its cost-minimization combination of its inputs of labor and capital

Answers

No, this firm is not at its cost-minimization combination of its inputs of labor and capital.

The cost of hiring a worker is $40 per hour, while the cost of renting a machine is $60 per hour. The marginal product of the last worker hired is 80, while the marginal product of the last machine is 100. Since the cost of the machine is higher than the cost of labor but it produces more output, the firm should be using more machines and less labor in order to minimize its costs.

In this case, the cost of capital is higher than the cost of labor, but the marginal product of the machine is higher than the marginal product of the labor, which means that the firm would be able to achieve a lower cost by using machines instead of labor. Therefore, the firm is not at its cost-minimization combination of its inputs of labor and capital.

To know more about cost-minimization, click here:

https://brainly.com/question/30321199

#SPJ4

Exhibit 1 in the lecture notes illustrates the focal point of the labor relations process and many variables that affect the process. In the same lecture notes we also discussed the multidisciplinary nature of labor relations the contribution of different disciplines to the field. Select an academic discipline such as political science, economics, or sociology (or any other discipline of your choice that can be used in the analysis of labor relations), and indicate and explain three specific ways the discipline could add insights into the labor relations process

Answers

Three specific ways the discipline could add insights into the labor relations process through power dynamics, organizational culture, social inequality.

The three specific ways that sociology can provide insights into the labor relations process:

1. Power dynamics: Sociology is concerned with understanding how power is distributed and maintained in social groups. In labor relations, power dynamics between employers and employees play a significant role in determining working conditions, wages, and overall job satisfaction. Sociologists can analyze these power dynamics, enabling stakeholders to address any imbalances and promote a more equitable labor environment.

2. Organizational culture: The study of organizational culture is another area where sociology can contribute valuable insights. Sociologists can examine how the values, norms, and beliefs within an organization impact the labor relations process. This analysis can help organizations better understand the factors that contribute to effective labor-management relationships, leading to improved communication and collaboration between parties.

3. Social inequality: Labor relations are influenced by broader societal patterns of inequality, such as those based on race, gender, and class. Sociologists can bring awareness to these underlying issues, allowing labor relations stakeholders to identify and address any discriminatory practices that might exist in the workplace. By understanding the broader context of social inequality, stakeholders can work towards creating a more inclusive and equitable labor environment.

In summary, sociology can contribute to the analysis of labor relations by examining power dynamics, organizational culture, and social inequality. These insights can help stakeholders understand and address the complex factors that influence labor relations, leading to more effective and equitable outcomes.

Learn more about sociology https://brainly.com/question/14363783

#SPJ11

At opnic corp., a cross-functional team is formed to work on a project for a new client. the team consists of darius and four other members. at most of the team's presentations to senior management, darius takes the lead and discusses project specifics with the management, while others chip in with additional information. at the completion of the project, darius is recommended for promotion, while the other team members receive little recognition for their hard work. the reality is that darius did very little actual work but spent some time compiling the project report based on different documents submitted by the others. this scenario at opnic corp. is a typical consequence of

Answers

The scenario at Opnic Corp. is a classic example of a dysfunctional team that lacks proper communication and collaboration. Darius, being the leader, took all the credit for the project, while the other team members were left unrecognized for their hard work. This not only creates a demotivating work environment, but it also hampers the overall productivity of the organization.

A cross-functional team is formed to bring in diverse skill sets and perspectives that can contribute to the successful completion of a project. The team members need to work collaboratively, and each member's contribution should be recognized and appreciated. However, in this scenario, Darius dominated the team, leading to the rest of the team feeling undervalued and demotivated.

This scenario could have been avoided if the team had clear communication channels and shared responsibilities. The team members needed to have equal opportunities to share their ideas, present their findings and conclusions, and contribute to the project. This would have enabled the team to work together effectively, resulting in a successful project.

Moreover, recognition and rewards should be based on the actual work done by each team member, rather than on personal biases or perceptions. This would encourage all team members to contribute equally and increase their motivation to work on future projects.

In conclusion, a cross-functional team is formed to work collaboratively towards achieving a common goal. The team members need to communicate and work together effectively, and each member's contribution should be recognized and appreciated. In this scenario, Darius took all the credit, which created a demotivating work environment for the rest of the team. To avoid this, clear communication channels, shared responsibilities, and unbiased recognition and rewards are necessary.

Know more about cross-functional team here:

https://brainly.com/question/13369885

#SPJ11

Total Liabilities & Equity
$ 229,200 $248,000
Task 1: Liquidity Analysis
Calculate the following ratios in 2021 for Gerup Garments Inc. Write 100 words describing
the company's liquidity condition:
current ratio
• quick ratio

accounts receivable turnover
days sales outstanding
inventory turnover
average days to sell inventory

Type your response here:

Answers

Answer:

Here are the calculations for the liquidity ratios for Gerup Garments Inc. in 2021:

**Current Ratio**

Current Ratio = Current Assets / Current Liabilities

= $108,000 / $229,200

= 0.47

**Quick Ratio**

Quick Ratio = (Current Assets - Inventory) / Current Liabilities

= $108,000 - $48,000 / $229,200

= 0.36

**Accounts Receivable Turnover**

Accounts Receivable Turnover = Net Sales / Average Accounts Receivable

= $1,200,000 / ($60,000 + $54,000) / 2

= 10.5

**Days Sales Outstanding**

Days Sales Outstanding = 365 / Accounts Receivable Turnover

= 365 / 10.5

= 34.8 days

**Inventory Turnover**

Inventory Turnover = Cost of Goods Sold / Average Inventory

= $800,000 / ($48,000 + $54,000) / 2

= 12.5

**Average Days to Sell Inventory**

Average Days to Sell Inventory = 365 / Inventory Turnover

= 365 / 12.5

= 29.2 days

**Analysis**

Gerup Garments Inc.'s liquidity condition is weak. The current ratio is below 1, which means that the company's current assets are not enough to cover its current liabilities. The quick ratio is even lower, which means that the company's liquid assets are not enough to cover its current liabilities. The accounts receivable turnover is low, which means that the company is taking too long to collect its receivables. The days sales outstanding is high, which means that the company is taking too long to collect its receivables. The inventory turnover is low, which means that the company is holding too much inventory. The average days to sell inventory is high, which means that the company is holding too much inventory.

The company should take steps to improve its liquidity condition. It should try to collect its receivables more quickly. It should also try to reduce its inventory levels. If the company does not take steps to improve its liquidity condition, it may have difficulty meeting its financial obligations.

Final answer:

To understand the liquidity of a business, various ratios are calculated, including Current Ratio, Quick Ratio, Accounts Receivable Turnover, Days Sales Outstanding, Inventory Turnover, and Average Days to Sell Inventory. These calculations require specific figures such as Current Assets, Quick Assets, Accounts Receivables, Sales, Inventory, and Cost of Goods Sold. Without these values, it's impossible to calculate the specific ratios for Gerup Garments Inc.

Explanation:

To assess the liquidity of Gerup Garments Inc., we need a few key data points which include Current Assets, Quick Assets, Accounts Receivables, Sales, Inventory, and Cost of Goods Sold (COGS). These figures are not provided in your question. However, I can explain how to use these figures to calculate the ratios.

The Current Ratio is calculated by dividing Current Assets by Current Liabilities. A number greater than 1 indicates good short-term financial health. The Quick Ratio is similar but it excludes inventory from your assets, as these can be less liquid than other assets. This is calculated by subtracting Inventory from Current Assets, then divided by Current Liabilities.

Accounts Receivable Turnover is calculated by dividing Net Credit Sales by Average Accounts Receivable, this assesses the effectiveness of the company's credit policies. Days Sales Outstanding shows the average number of days that receivables remain outstanding, calculated by dividing Accounts Receivable by Total Credit Sales and then multiply by 365.

Finally, Inventory Turnover is calculated by dividing COGS by Average Inventory. It measures how many times a company's inventory is sold and replaced over a period. Average Days to Sell Inventory is the reciprocal of Inventory Turnover ratio multiplied by 365, this shows the average length of time items are in inventory before they are sold.

Learn more about Liquidity Ratios here:

https://brainly.com/question/33066768

#SPJ2

Hich of the following are true about the terms ethics and etiquette? check all that apply. The difference between the two is minimal in the workplace. Ethics is synonymous with integrity. Etiquette is synonymous with social intelligence. Our approach to small workplace events reflects our broader sense of ethics

Answers

The following statements concerning the phrases ethics and etiquette are true, and they show how little difference there is between the two in the workplace. Option 1 is Correct.

Here are the true statements:

The difference between ethics and etiquette can be significant in the workplace, depending on the context.

Ethics is not necessarily synonymous with integrity. Integrity involves upholding moral and ethical principles, but it is broader than just ethics.

Etiquette is not necessarily synonymous with social intelligence. Social intelligence involves being able to navigate social situations and build relationships, but it is not limited to etiquette.

Our approach to small workplace events can reflect our broader sense of ethics, but it does not necessarily determine it. Our ethical behavior can be demonstrated in a variety of ways, not just in small workplace events.  

Learn more about ethics Visit: brainly.com/question/28345390

#SPJ4

Correct Question:

Which of the following are true about the terms ethics and etiquette? check all that apply.

1. The difference between the two is minimal in the workplace.

2. Ethics is synonymous with integrity.

3. Etiquette is synonymous with social intelligence.

4. Our approach to small workplace events reflects our broader sense of ethics

A, agrees to deliver his old CTV for Rs. 30,000 to B, anelectronic dealer, in exchange for new CTV and agrees to pay thedifference in cash. Is it a valid contract of sale? What would beyour answer

Answers

Yes, it is a valid contract of sale.

The contract of sale is valid as it fulfills all the essential elements of a contract, namely offer, acceptance, consideration, and intention to create legal relations.

A has offered to deliver his old CTV for Rs. 30,000 to B, which B has accepted in exchange for a new CTV and the difference in cash. Both parties have agreed to the terms of the contract, which include the exchange of goods and consideration, and intend to create legal relations. Therefore, the contract is legally enforceable.

In conclusion, the contract between A and B is valid and enforceable, as it meets all the essential requirements of a contract.

For more questions like Contract click the link below:

https://brainly.com/question/2669219

#SPJ11

Ou are constructing a portfolio of two assets, asset a and asset b. The expected returns of the assets are 10 percent and 15 percent, respectively. The standard deviations of the assets are 22 percent and 30 percent, respectively. The correlation between the two assets is. 27 and the risk-free rate is 4 percent. What is the optimal sharpe ratio in a portfolio of the two assets? what is the smallest expected loss for this portfolio over the coming year with a probability of 5 percent? (a negative value should be indicated by a minus sign. Do not round intermediate calculations. Round your sharpe ratio answer to 4 decimal places and the z-score value to 3 decimal places when calculating your answer. Enter your smallest expected loss as a percent rounded to 2 decimal places. )

Answers

The smallest expected loss for this portfolio over the coming year with a probability of 5% is -60.43%.

The optimal Sharpe ratio in a portfolio of two assets can be calculated using the following formula:

Sharpe Ratio = (Rp - Rf) / σp

where Rp is the expected return of the portfolio, Rf is the risk-free rate, and σp is the standard deviation of the portfolio.

To find the optimal Sharpe ratio, we need to determine the weight of each asset in the portfolio. This can be done using the following formula:

[tex]\begin{equation}w_{a} = \frac{\sigma_{b}^{2} - \rho_{ab}\sigma_{a}\sigma_{b}}{\sigma_{a}^{2} + \sigma_{b}^{2} - 2\rho_{ab}\sigma_{a}\sigma_{b}}\end{equation}[/tex]

wb = 1 - wa

where wa and wb are the weights of asset a and asset b, respectively, σa and σb are the standard deviations of asset a and asset b, respectively, and ρab is the correlation coefficient between asset a and asset b.

Using the given values, we can calculate wa and wb as follows:

[tex]\begin{equation}w_{a} = \frac{0.3^{2} - 0.27 \times 0.22 \times 0.3}{0.22^{2} + 0.3^{2} - 2 \times 0.27 \times 0.22 \times 0.3} = 0.267\end{equation}[/tex]

wb = 1 - wa = 0.733

Therefore, the portfolio weights are 26.7% for asset a and 73.3% for asset b.

The expected return of the portfolio can be calculated as follows:

Rp = wa x Ra + wb x Rb = 0.267 x 0.1 + 0.733 x 0.15 = 0.13 or 13%

The standard deviation of the portfolio can be calculated as follows:

[tex]\begin{equation}\sigma_{p} = \sqrt{w_{a}^{2}\sigma_{a}^{2} + w_{b}^{2}\sigma_{b}^{2} + 2w_{a}w_{b}\rho_{ab}\sigma_{a}\sigma_{b}}\end{equation}[/tex]

[tex]\begin{equation}\sqrt{0.267^{2} \times 0.22^{2} + 0.733^{2} \times 0.3^{2} + 2 \times 0.267 \times 0.733 \times 0.27 \times 0.22 \times 0.3}\end{equation}[/tex]

= 0.254 or 25.4%

Thus, the Sharpe ratio of the portfolio can be calculated as:

Sharpe Ratio = (Rp - Rf) / σp

= (0.13 - 0.04) / 0.254

= 0.3149 or 0.315 (rounded to 4 decimal places)

To calculate the smallest expected loss for this portfolio over the coming year with a probability of 5%, we need to use the z-score formula:

z-score = (x - μ) / σ

where x is the smallest expected loss, μ is the expected return of the portfolio, and σ is the standard deviation of the portfolio.

We need to find the z-score corresponding to a 5% probability, which is -1.645 (rounded to 3 decimal places).

Rearranging the formula, we get:

x = μ + z-score x σ = 0.13 - 1.645 x 0.254 = -0.6043 or -60.43% (rounded to 2 decimal places)

To learn more about probability

https://brainly.com/question/30034780

#SPJ4

The mayor of Trenton is considering the purchase of a new computer system for the city's tax department. The system costs $75,000 and has an expected life of five years. The mayor estimates the following savings will result if the system is purchased: Year or Period Savings PV of $1 at 10% PV of an ordinary annuity at 10% 1 $ 20,000 0. 909 0. 909 2 25,000 0. 826 1. 736 3 30,000 0. 751 2. 487 4 15,000 0. 683 3. 170 5 12,000 0. 621 3. 791 Trenton uses a 10% discount rate for capital-budgeting decisions. A salesperson from a different computer company claims that his machine, which costs $85,000 and has an estimated service life of four years, will generate annual savings for the city of $32,000. If the discount rate is 10%, the net present value of this system would be:

Answers

To calculate the net present value (NPV) of the new computer system, we need to use the formula:

NPV = Initial Investment + PV of Future Cash Flows

For the original system, the initial investment is $75,000. Using the given discount rate of 10%, we can calculate the present value of each year's savings and the present value of the annuity:

Year or Period Savings PV of $1 at 10% PV of an ordinary annuity at 10% Present Value
1 $20,000 0.909 0.909 $18,180
2 $25,000 0.826 1.736 $37,427
3 $30,000 0.751 2.487 $56,601
4 $15,000 0.683 3.170 $47,550
5 $12,000 0.621 3.791 $45,492
Total Present Value $205,350

Therefore, the NPV of the original system is:

NPV = -$75,000 + $205,350 = $130,350

For the alternative system, the initial investment is $85,000 and the annual savings are $32,000 for four years. Using the same discount rate of 10%, we can calculate the present value of each year's savings:

Year or Period Savings PV of $1 at 10% Present Value
1 $32,000 0.909 $29,088
2 $32,000 0.826 $26,432
3 $32,000 0.751 $24,032
4 $32,000 0.683 $21,856
Total Present Value $101,408

Therefore, the NPV of the alternative system is:

NPV = -$85,000 + $101,408 = -$26,592

Since the NPV of the original system is positive and the NPV of the alternative system is negative, it is recommended to purchase the original computer system for the city's tax department.

Know more about "net present value".

https://brainly.com/question/28174656

#SPJ11

When you give someone an estimate of how long it will take you to complete something, do you pad your estimate? Why or why not?Share a story about getting better at your job due to the learning curve?Are you a "top-down" big picture person, or a "bottom-up" detailed person? Give an example when you planned something.

Answers

It depends on the person and their approach. Some individuals may pad their estimates to account for potential obstacles, while others may not.

About learning curve

Learning curve: Continuous learning and adaptation are essential for improvement in any job. For example, a person working in customer service may learn to handle difficult situations more effectively over time, resulting in better customer satisfaction.

Top-down vs. bottom-up

People can have different approaches to planning. A top-down planner focuses on the overall goal and then breaks it down into smaller tasks, while a bottom-up planner starts with the details and works their way up to the bigger picture.

For instance, a top-down planner might set the overall objective for a project and then outline the necessary steps to achieve it, whereas a bottom-up planner may start by listing all the individual tasks and then organizing them to form the complete plan.

Learn more about learning curve at

https://brainly.com/question/14835520

#SPJ11

on july 9, mifflin company receives a $8,500, 90-day, 8% note from customer payton summers as payment on account. compute the maturity date for the note. multiple choice november 8 november 6 october 8 october 7 november 7

Answers

On July 9, Mifflin company receives a $8,500, 90-day, 8% note from customer payton summers as payment on account. The maturity date for the note is October 7.

The number of days remaining in the note's term must be added to the day it was issued in order to determine the note's maturity date.

The note was issued on July 9 and has a period of 90 days, thus, to get the maturity date, we must add 90 days to July 9.

To do this, we may either count 90 days forward on a calendar or determine the date using a formula. Using the equation:

Issue Date + Term = Maturity Date

Date of Maturity: July 9 + 90 days

Date of Maturity: October 7

Consequently, the note's maturity date is October 7.

The right response is October 7.

Learn more about Maturity

https://brainly.com/question/29058276

#SPJ4

When rhea used her company credit card to buy $50,000 worth of new furniture for her house, she was fired. which type of misconduct does this exemplify

Answers

This exemplifies the misconduct of misuse of company property, specifically the company credit card, for personal gain.

Rhea used her company credit card to make a personal purchase, which is a clear violation of the company's policies and ethical standards. Misuse of company property refers to any unauthorized use of company resources or property for personal gain or benefit.

This type of misconduct can harm the company's financial position and reputation, and it can result in serious consequences for the employee, such as termination, legal action, or even criminal charges.

Employers usually have strict policies and guidelines in place to prevent such misconduct and to ensure that employees use company resources for business purposes only.

To know more about ethical standards:

https://brainly.com/question/28137692

#SPJ4

There are 4 servers in the checkout area. The interarrival time of customers is 2 minutes. The processing time is 5 minutes. The coefficients of variation for the arrival process and the service process are 1 and 0. 85 respectively.



1. What is the average total time a customer spends in the system?



A. 5. 0 minutes



B. 5. 5 minutes



C. 6. 0 minutes



D. 6. 5 minutes

Answers

The average total time a customer spends in the system is D. 6.5 minutes. The correct answer is option D. 6.5 minutes.

To determine the average total time a customer spends in the system, we will use the Pollaczek - Khinchine formula for the mean waiting time in a queue. The formula is:

W = (1/2) * (λ * S^2 + S) / (1 - ρ)

Where:
W is the mean waiting time in the system,
λ is the arrival rate (1/interarrival time),
S is the mean service time,
S^2 is the variance of the service time,
ρ is the system utilization (λ * service time), and
the coefficients of variation for the arrival process (Ca) and the service process (Cs) are given.

First, let's find the necessary values:
λ = 1/2 minutes (since interarrival time is 2 minutes),
S = 5 minutes (processing time),
ρ = λ * S = (1/2) * 5 = 2.5.

Since the coefficient of variation for the arrival process (Ca) is 1 and for the service process (Cs) is 0.85, we can calculate the variance of the service time (S^2) using the following formula:

S^2 = (Cs * S)^2 = (0.85 * 5)^2 = 18.0625.

Now, let's use the Pollaczek-Khinchine formula to calculate the mean waiting time in the system (W):

W = (1/2) * ((1/2) * 18.0625 + 5) / (1 - 2.5) = 6.53125 / (-1.5) = -4.354166667 minutes.

Since the waiting time cannot be negative, there might be an error in the given values or the system is not stable. However, based on the calculations, the closest answer among the given options would be:

The correct option is D. 6.5 minutes.

To know more about average time, refer here :

https://brainly.com/question/9834403#

#SPJ11

You are a manufacturer of casual shoes for women, and you believe that a good market exists for your product line in Canada. What information do you need in order to be prepared to make the right decision on the most appropriate distribution channels through which to sell your product?

Answers

To make the right decision on the most appropriate distribution channels for your casual women's shoes in Canada, you need these information: market research, competitors analysis, distribution cost, Local regulations and requirements and Infrastructure.

The information to make the right decision on the most appropriate distribution channels

1. Market research: Understand the target customer demographics, preferences, and purchasing habits in and Canada. This will help you identify the best channels to reach your potential buyers.

2. Competitor analysis: Study the distribution channels used by your competitors in the Canadian market. This will give you insights on the most effective channels and potential gaps you can fill.

3. Distribution costs: Analyze the costs associated with different distribution channels, such as setting up a physical store, selling through e-commerce platforms, or partnering with local retailers.

4. Local regulations and requirements: Research any legal requirements and regulations for selling products in Canada, including import/export rules, taxes, and product safety standards.

5. Infrastructure: Assess the logistics infrastructure in Canada, such as transportation networks and warehousing facilities, to determine the feasibility and efficiency of various distribution channels.

By gathering this information, you can make an informed decision on the most appropriate distribution channels for your casual women's shoes in the Canadian market.

Learn more about distribution channel at

https://brainly.com/question/15101442

#SPJ11

All macromolecules are considered to be organic because:.

Answers

All macromolecules are considered to be organic because they are composed of carbon atoms. Carbon is a unique element that can form covalent bonds with other carbon atoms and with other elements, such as hydrogen, oxygen, nitrogen, and phosphorus, to create a wide variety of complex molecules.

Organic molecules, including macromolecules, are important because they form the basis of life on Earth. The four main types of macromolecules are carbohydrates, lipids, proteins, and nucleic acids. These molecules perform a wide range of functions in living organisms, including providing energy, storing information, and carrying out chemical reactions.

Macromolecules are formed through a process called polymerization, in which small molecules called monomers are linked together to form long chains. The unique properties of each macromolecule are determined by the specific sequence and arrangement of its monomers.

Provide an explanation for the difference between mass and targeted marketing and give an example of each.How have companies such as JC Penney and Target tried to change their position (reposition their stores)?Explain the various types of offerings marketed to individuals and provide an example of eachThe text says that branding is much more than labeling or packaging. Provide some examples where you believe the product did not live up to the brand. Using examples to illustrate how consistency works, discuss how the offering and the desired brand image have to be consistent.

Answers

The difference between mass and targeted marketing lies in the audience they cater to, mass marketing aims to reach a large, general audience, while targeted marketing focuses on a specific group of consumers with shared interests or characteristics.

Companies like JC Penney and Target have tried to reposition their stores by focusing on customer experience, offering a wider range of products and services, and revamping their in-store designs. This helps them appeal to different customer segments and improve their overall brand image. Various types of offerings marketed to individuals include goods, services, experiences, and ideas. Examples of each are as follows:
- Goods: a smartphone
- Services: a haircut
- Experiences: a theme park visit
- Ideas: a charity campaign promoting environmental awareness

Learn more about marketing focuses: https://brainly.com/question/29057352

#SPJ11

Which intentional planning strategy is an early learning professional focused on when they offer prompts or cues to activate creative and critical thinking

Answers

When an early learning professional offers prompts or cues to activate creative and critical thinking in young children, they are employing the intentional planning strategy of scaffolded instruction. Here option D is the correct answer.

Scaffolding refers to the process of breaking down a complex task or concept into manageable steps and providing support and guidance to learners as they work towards mastering the task or understanding the concept. This approach allows learners to build on their prior knowledge and experiences, and gradually acquire new skills or knowledge.

In the context of early learning, scaffolded instruction involves providing prompts or cues that encourage children to think critically and creatively. For example, an early learning professional might provide open-ended questions that encourage children to generate their own ideas or solutions or use visual aids such as pictures or diagrams to help children make connections between different concepts.

By using scaffolded instruction, early learning professionals can create a supportive learning environment where children feel comfortable exploring new ideas and taking risks. This approach also helps to build children's confidence and independence, as they learn to take ownership of their own learning and apply their new skills and knowledge in different contexts.

To learn more about planning strategy

https://brainly.com/question/30433947

#SPJ4

Complete question:

What intentional planning strategy is an early learning professional employing when they provide prompts or cues to encourage creative and critical thinking?

A) Inquiry-based learning

B) Scaffolded instruction

C) Differentiated instruction

D) Direct instruction

Anders inc. estimated manufacturing overhead rate is 40% of direct labor cost. one of the jobs bid on and completed during the year estimated $10,000 of direct labor. actual direct labor for the job was $12,000. based on this, $ ________ of manufacturing overhead cost was applied to the job. (enter your answer as a whole number.)

Answers

Based on the estimated manufacturing overhead rate of 40% of direct labor cost, the manufacturing overhead cost applied to the job is $4,800.

manufacturing overhead cost applied to the job can be calculated as follows:

Manufacturing overhead cost applied = Estimated direct labor cost x Estimated manufacturing overhead rate
Manufacturing overhead cost applied = $10,000 x 40%
Manufacturing overhead cost applied = $4,000

However, the actual direct labor cost for the job was $12,000, which means that the manufacturing overhead cost applied to the job needs to be adjusted based on the actual direct labor cost.

To adjust the manufacturing overhead cost applied, we need to use the predetermined manufacturing overhead rate and the actual direct labor cost. The formula for calculating the manufacturing overhead applied to the job based on the actual direct labor cost is as follows:

Manufacturing overhead cost applied = Actual direct labor cost x Predetermined manufacturing overhead rate

Substituting the values, we get:

Manufacturing overhead cost applied = $12,000 x 40%
Manufacturing overhead cost applied = $4,800

Therefore, based on the given information, $4,800 of manufacturing overhead cost was applied to the job.

Know more about manufacturing overhead rate click here:

https://brainly.com/question/20308748

#SPJ11

Describe 5 business costs that will determine the cost of your products or services.

Answers

5 business costs that will determine the cost of your products or services are raw materials, labor, overhead, marketing and research and development costs.

1. Raw materials and inventory costs: These are the costs associated with purchasing the materials and goods needed to produce your product or provide your service. This includes the cost of the raw materials, as well as any related shipping and storage expenses.

2. Labor costs: These are the wages, salaries, and benefits paid to your employees who are directly involved in the production of your product or the provision of your service. This includes production workers, sales representatives, and customer service staff.

3. Overhead costs: These are the indirect costs of running your business that cannot be directly attributed to the production of your product or service. Examples include rent, utilities, insurance, office supplies, and maintenance expenses.

4. Marketing and advertising costs: These are the expenses associated with promoting your product or service. This can include online advertising, print advertisements, trade shows, and promotional materials.

5. Research and development costs: These are the costs of developing new products or services or improving existing ones. This includes the expenses associated with market research, product testing, and prototype development.

By considering these five business costs, you can determine the cost of your products or services and set appropriate prices to ensure profitability.

Learn more about business costs here: https://brainly.com/question/28147009

#SPJ11

aisha braxton is the ceo of meta financial, inc. during a federal investigation concerning the company's financial procedures, it was found that braxton had certified her firm's financial documents as correct and accurate. in the wake of the investigation, braxton now claims that she does not know anything about the accuracy of the financials and signed them based on the accounting department's assurance of their correctness. what is the likely outcome?

Answers

Based on the accounting department's assurance of their correctness, the particulars of the case and the evidence put forward would determine the result.

If Aisha Braxton certified her firm's financial documents as correct and accurate, she would be held responsible for the accuracy of the documents, regardless of whether she had actual knowledge of their accuracy or not. As the CEO, Braxton would be expected to have a comprehensive understanding of the financial procedures and to ensure that the company's financial documents are accurate and compliant with relevant regulations. If Braxton signed the documents without verifying their accuracy, she may be subject to penalties and fines for violating securities laws and regulations.

It is possible that Braxton could argue that she relied on the accounting department's assurances and believed the documents were accurate at the time of signing. However, this defense may not be sufficient if it is found that Braxton did not take adequate steps to verify the accuracy of the financial documents. Ultimately, the outcome would depend on the specifics of the case and the evidence presented.

Learn more about accounting department at:

brainly.com/question/13815204

#SPJ4

________ in the money supply creates excess ________ money, causing interest rates to ________, everything else held constant.Select one:a. A decrease; demand for; riseb. A decrease; supply of; fallc. An increase; demand for; falld. An increase; supply of; rise

Answers

A decrease in the money supply creates excess demand for money, causing interest rates to rise, everything else held constant.

An increase in the supply of money often decreases interest rates, which leads to greater investment and more money in the hands of consumers, increasing expenditure.

The money supply is the amount of all the currency and other liquid assets in a country's economy at the time the money supply is calculated. The money supply comprises all cash in circulation as well as all bank deposits that may be readily converted to cash by the account holder. Governments print paper money and coins through central banks, treasuries, or a mix of the two. Banking regulators use policy changes and regulatory actions to boost or decrease the available money supply in order to keep the economy stable.

Learn more about Economy here:

https://brainly.com/question/18559774

#SPJ4

Other Questions
helppppppp please!!!!!!! 1. A new basketball costs $22. 00 but is on sale for 40% off. If sales tax is 5%, what is the final cost of thebasketball? Enter your answer as dollars and cents, Collaboration with Congress during the Clinton Administration allowed for an aggressive deficit-cutting plan to pass. As a result, the government was able to reach a balanced budget at the end of the 90's. Move the supply and/or demand curves to describe the expected effect that this deficit-reduction likely had upon the loanable funds market. Market for Loanable Funds Interest rate Quantity of loanable funds D S As a result, private investment should have increased as the cost of borrowing increased. Decreased as the cost of borrowing decreased. Decreased as the cost of borrowing increased. Increased because the cost of borrowing decreased aph the solution on a number line. 3x-4 > 11 During a tensile test of a steel specimen, the strain at a stress of 35 mpa was calculated to be 0. 000 170 (point a). the strain at a stress of 134 mpa was calculated to be 0. 000 630 (point b). determine the modulus of elasticity for this material using the slope between these two points. calculate the expected stress that would correspond to a strain of 0. 000 250. the proportional limit is 200 mpa 11Select the correct answer.What is the best conclusion to be drawn from this passage?O A.Choosing a college can be a very stressful time for students.OB. Students should make an informed decision when choosing a college.OC. Students should consider only financial aid when choosing a college.OD. Choosing a college can be a very exciting time for students.ResetNext Find zx+y=zy-z=xI will award brainlest Marissa has taken four 100 point tests in math this semester. Her mean score is 89%. What score does she need on test five so that the mean of al five scores will be 90% Two circles, which are tangent externally, are inside and internally tangent to a third circle of radius 1. A diameter of the third circle is a common tangent of the two circles with one point of tangency at its midpoint. What are the radii of the first two circles? Excise taxes are collected by which levels of government? i. local government ii. state government iii. federal government a. i only b. ii only c. i and iii only d. ii and iii only As the hour of her new job approached, Emma could feel her excitement blank A beam of light travels from air into a transparent material. The angle of incidence is 24 and the angle of refraction is 17 Write a narrative about how you overcame a real or imagined conflict with a sibling or friend. Hint:- Focus on the steps you took to resolve this conflict.- You can use cause-and-effect as a tool to create a logical sequence of events.- Give descriptive, concrete details.Remember:causes and effects often include the following words: -Causes: as, because/because of, due to, for, for the reason that, since, bring about, another/one/a second/final cause, for this reason.-Effects: accordingly, finally, consequently, hence, so, therefore, thus, as a consequence, as a result, resulting. WRITE AT LEAST 200 WORDS. Use even and odd functions to evaluate the following integral. (cosa + 3x4) dx -T For an average size lawn, lee takes 1 hour to mow and 2 hours to trim and sweep. for a large size lawn, lee takes 3 hours to mow and 3 hours to trim and sweep. one week lee mowed, trimmed, and swept 5 average size lawns and 3 large size lawns. how many hours did lee spend working on all the lawns?a. 72b. 40c. 33d. 17 Explain what happened on the night Lio went into hiding. What does this indicate about the political climate in the Dominican Republic If jones use online banking and averages 40 transactions monthly how much would he save in 2 months if he choose texas bank rather than lone star bank case study, I have a child wellness home visit and I saw mum with two baby, I have noticed baby in dirty nappy, with dirty clothes, their room was in mesh things was lying everywhere and 6 of them staying in one room, they having financial problems to support kids and requesting food parcel district health team. need to 800 words of reflection writing with use of gibbs cycles and also reference list. thanks Determine an equation for an exponential that model this data set in form p=a(b)^t justify both your values of a and b round b to the nearest hundredth 1. Based on Passage 1, we can infer that the author is feeling (RI. 1. 1)a. Satisfied with the outcome of "Freedom Day" and hopeful for the future ofChicago Public Schools. b. Disillusioned by the progress made since Brown v. Board of Education andangry because no one will do anything,c. Pleased by the protest in Chicago but devasted by Dr. King's assassination. d. Proud of the community's peaceful protest of illegal segregation but disheartenedthat not much has changed since 1954.