Gross Method: Gross method refers to recording an invoice at full price at which it is sold without considering discount. This ensures that the party to sale does not take advantage of cash discount at the time of sale. Term 3/15, n/60: Term 3/15, n/60 means that if the customer pays within 15 days then a discount of 3% will be given otherwise full price is due within 60 days. To pass the journal entries at the respective date.

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I would like to know how these 3 questions are solved, and what the answers are. Based on the following information, calculate the expected return and standard deviation of returns for each of the following stocks. Assume that each state of the economy is equally likely to happen. What are the covariance and correlation between the returns of the two stocks? Economic state Return on stock A Return on stock A Bull 6% 23% Regular 12% 14% Bear 8% -7% Stock T has a beta of 0.75. If the T-bill rate is 4% and market rate of return is 11%, what would be the expected return on stock T? An asset has an expected rate of return of 13%. If the T-bill rate is 7% and the asset’s beta is 1.25, what would be the market rate of return? Assume that there are two portfolios, A and B, having expected returns of 14% and 15%, respectively. If the portfolios betas are 1 and 1.25, respectively what would be the risk-free rate (Rf)?

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Chapter 7, Problem 6E

To determine

Gross Method: Gross method refers to recording an invoice at full price at which it is sold without considering discount. This ensures that the party to sale does not take advantage of cash discount at the time of sale.

Term 3/15, n/60: Term 3/15, n/60 means that if the customer pays within 15 days then a discount of 3% will be given otherwise full price is due within 60 days.

To pass the journal entries at the respective date.

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I would like to know how these 3 questions are solved, and what the answers are. Based on the following information, calculate the expected return and standard deviation of returns for each of the following stocks. Assume that each state of the economy is equally likely to happen. What are the covariance and correlation between the returns of the two stocks? Economic state Return on stock A Return on stock A Bull 6% 23% Regular 12% 14% Bear 8% -7% Stock T has a beta of 0.75. If the T-bill rate is 4% and market rate of return is 11%, what would be the expected return on stock T? An asset has an expected rate of return of 13%. If the T-bill rate is 7% and the asset’s beta is 1.25, what would be the market rate of return? Assume that there are two portfolios, A and B, having expected returns of 14% and 15%, respectively. If the portfolios betas are 1 and 1.25, respectively what would be the risk-free rate (Rf)?

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