f the regression method indicated the intercept = $30 and the slope = $20 for a cost function, the

Q: Begin by selecting the formula to compute the current ratio.   Current ratio formula =…

A: Current ratio: The financial ratio which evaluates the ability of a company to pay off the debt…

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A: MARGINAL COSTING INCOME STATEMENT Marginal Costing Income Statement is One of the Important Cost…

Q: The regression analysis is normally depicted as "y = Ax+ B." What does "A" indicate in the equation?…

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Q: The intercept (straight line) on a graph of the linear cost function represents ....... cost

A: The cost function depicts the costs that will be incurred at various levels of activity Cost…

Q: Paint Produced

A: Variable cost  an be  computed as, Variable cost = (Cost at highest activity - Cost at lowest…

Q: Commodore Company uses a standard cost system for its production process and applies overhead based…

A: Cost accounting is a mechanism adopted by entities to find out the true cost of a specific service,…

Q: Expected return and standard deviation. Use the following information to answer the questions: a.…

A: Expected return, variance and standard deviation of each asset is calculated in excel

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Q: e measure of volatility is Select one: a. sigma. b. standard deviation.  c. sigma squared. d.…

A: Volatility is change in stock price in up and down. That is very important in option pricing.

Q: \table[[Cuantivy, \table[[Totil], [Cost]], \table [[Fined], [Cost]], \table[[Variable], [Cost]], \…

A: Variable in the question:Fixed cost=$50

Q: Consider two assets with expected return R1=0.22,R2=0.55and variance are s1=0.80, s2=0.88 and…

A: Computation of expected return and variance is enumerated as below:

Q: Define average return

A: The formula to compute average return as follows:

Q: Consider the following utility function: u = 400 (1 + 1)−1. xy a. Is this utility function…

A: Solution-

Q: In the cost behavior equation, b*X denotes the variable cost per unit. Select one: O True O False

A: Cost behavior serves as an indicator of how a cost will vary overall when an activity is changed.…

Q: Variance percentage is calculated by dividing the choose your answer... by the choose your answer...

A: Variation refers to the difference i.e. the difference between the current amounts with the budgeted…

Q: how did you find the margin ratio?

A: A margin ratio is a financial metric that measures the % of profit generated from an entity's…

Q: he variance of expected returns is equal to the square root of the expected returns. a. True b.…

A: Formula for variance:S2=∑(Xi-X̄) 2/n S2=VarianceXi=Value of one observationX̄=Mean value of all…

Q: The regression line in a scatterplot is also known as a(n): O A. R-squared line. O B. high-low line.…

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Q: sider the following two sets of data: A = [0.5, -0.6, 0.1, 10] & B = [6, 4, 4.5, 5.5]. Which data…

A: Variance is a measure of risk in finance terms. Variance measures degree of spread for a given data.

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Q: options are: regression moving average weighted moving average correlation exponential smoothing

A: The objective of the question is to match the given terms with their most appropriate descriptions.

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Q: Please, compute mean returns, variances and covariance among the two assets of the IBEX35 and…

A: “Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…

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A:

Q: Year 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Return IWM…

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Risk and return

Before understanding the concept of Risk and Return in Financial Management, understanding the two-concept Risk and return individually is necessary. 

Capital Asset Pricing Model

Capital asset pricing model, also known as CAPM, shows the relationship between the expected return of the investment and the market at risk. This concept is basically used particularly in the case of stocks or shares. It is also used across finance for pricing assets that have higher risk identity and for evaluating the expected returns for the assets given the risk of those assets and also the cost of capital.