In an efficient market, professional portfolio management can offer all of the following benefits except which of the following? A. A superior risk-return trade-off
B. Low-cost diversification
C. A targeted risk level
D. Low-cost record keeping

Answers

Answer 1
Answer:

Answer:

A. A superior risk-return trade-off

Explanation:

In a normal and efficient market a professional portfolio management service is able to offer  Low-cost diversification, A targeted risk level, and even a Low-cost record keeping. What they cannot offer is a superior risk-return trade-off, this is because risk-return holds a very correlated trade-off in which the higher amount of risk your portfolio holds the higher returns you can get from it, but this does not get rid of the risk which can cause you to lose all of your money. Therefore "superior" is unnachievable.


Related Questions

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In the Romer model, the inputs to production are: a. capital and labor.
b. capital and ideas.
c. labor and ideas.
d. natural resources, labor, and ideas.
e. labor and total factor productivity.

Answers

Answer:

c. labor and ideas.

Explanation:

The Romer model is a type of economical model that breaks down the world into objects and ideas such as capital, labor

In the Romer model, the inputs to production are labor and ideas.

On December 31, 2017, Extreme Fitness has adjusted balances of $800,000 in Accounts Receivable and $55,000 in Allowance for Doubtful Accounts. On January 2, 2018, the company learns that certain customer accounts are not collectible, so management authorizes a write-off of these accounts totaling $10,000. What amount would the company report as its net accounts receivable on December 31, 2017? Prepare the journal entry to write off the accounts on January 2, 2018. Assuming no other transactions occurred between December 31, 2017, and January 3, 2018, what amount would the company report as its net accounts receivable on January 3, 2018? Has net accounts receivable changed from December 31, 2017?

Answers

Answer and step-by-step explanation:

Step 1: Calculation of net accounts receivable on December 31, 2017

Net accounts receivable

= Accounts Receivable - Allowance for Doubtful Debts

= $800,000 - $55,000

= $745,000

The company shall report its net accounts receivable on December 31, 2017 as $745,000.

Step 2: Journal entry to write off the accounts:

                                                                                    Debit             Credit

2-Jan-2018      Allowance for doubtful debts            $10,000

                               Accounts receivable                                          $10,000

                        Writing off debts not collectible

Step 3: Calculation of net accounts receivable on January 3, 2018:

Net accounts receivable

= Accounts Receivable - Allowance for Doubtful Debts

= $790,000 - $45,000

= $745,000

The company shall report its net accounts receivable on January 3, 2018 as $745,000. The net accounts receivable has not changed from December 31, 2017 because the write-offs worth $10,000 were estimated and allowed for in 2017. Hence, the decrease in accounts receivable is offset by an equal decrease in the allowance for doubtful debts.

Final answer:

Extreme Fitness had a Net Accounts Receivable of $745,000 on December 31, 2017. Even after the write-off of certain accounts totalling $10,000 on January 2, 2018, the Net Accounts Receivable strikes the same balance on January 3, 2018, because the write-off affects both the Accounts Receivable and Allowance for Doubtful Accounts equally.

Explanation:

On December 31, 2017, Extreme Fitness had a balance of $800,000 in Accounts Receivable. This amount was offset by a balance of $55,000 in Allowance for Doubtful Accounts, resulting in a Net Accounts Receivable of $745,000 ($800,000 - $55,000).

The company learnt on January 2, 2018, about certain uncollectible accounts and authorized a write-off of $10,000. The journal entry for this would be Debit: Allowance for Doubtful Accounts $10,000 and Credit: Accounts Receivable $10,000. This reduces the Book Value of Accounts Receivable by the write-off amount but does not affect the Net Accounts Receivable.

Thus, post the write-off action on January 3, 2018, the total Accounts Receivable would reduce to $790,000 ($800,000 - $10,000), and the Allowance for Doubtful Accounts would reduce to $45,000 ($55,000 - $10,000). The Net Accounts Receivable, however, still stays at $745,000 ($790,000 - $45,000), just as it was on December 31, 2017.

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Javonte Co. set standards of 2 hours of direct labor per unit of product and $15.80 per hour for the labor rate. During October, the company uses 12,100 hours of direct labor at a $193,600 total cost to produce 6,400 units of product. In November, the company uses 16,100 hours of direct labor at a $258,405 total cost to produce 6,800 units of product. AH = Actual Hours SH = Standard Hours AR = Actual Rate SR = Standard Rate (1) Compute the direct labor rate variance, the direct labor efficiency variance, and the total direct labor cost variance for each of these two months. Classify each variance as favorable or unfavorable. (2) Javonte investigates variances of more than 5% of actual direct labor cost. Which direct labor variances will the company investigate further?

Answers

Answer:

October

direct labor rate variance =$2,420 unfavorable

direct labor efficiency variance  =$11,060 favorable

direct labor cost variance  = $ 8,640 favorable

Investigate : direct labor efficiency variance

November

direct labor rate variance = $4,025 unfavorable

direct labor efficiency variance =$ 39,500 favorable

direct labor cost variance  = $35,475 favorable

Investigate : direct labor efficiency variance

Explanation:

October

direct labor rate variance = (Aq × Ap) -  (Aq × Sp)

                                          = (12,100×$16) - (12,100×$15.80)

                                          =$2,420 unfavorable

direct labor efficiency variance = (Aq × Sp) - (Sq × Sp)

                                                    =(12,100 × $15.80) - (6,400×2 ×$15.80)

                                                    =$11,060 favorable

direct labor cost variance = direct labor rate variance + direct labor efficiency variance  

                                           = $2,420 (A) + $11,060 (F)

                                           = $ 8,640 favorable

November

direct labor rate variance = (Aq × Ap) -  (Aq × Sp)

                                          = (16,100×$16.05) - (16,100×$15.80)

                                          = $4,025 unfavorable

direct labor efficiency variance = (Aq × Sp) - (Sq × Sp)

                                                    =(16,100 × $15.80) - (6,800×2 ×$15.80)

                                                    =$ 39,500 favorable

direct labor cost variance = direct labor rate variance + direct labor efficiency variance

                                          = $4,025 (A) + $ 39,500 (F)

                                           = $35,475 favorable

You are the CFO of a publicly-traded company in a very competitive industry. You are preparing the annual report and SEC filings and you are carefully considering how much information to provide. You fear that your competitors could gain some advantage if you present too much detail but you know that investors want more detail so they can evaluate the business (and management) performance. How do you handle these conflicting elements?

Answers

Answer:

Investors structure is a significant part of an organization. In this manner, it is important to provide the significant data so they can take inform decision. The yearly report give the imperative data the utilization of which they can shape solid justification for taking choices. In any case, most of the time, dominant part of the investors/speculators barely spend their valuable time on examining every single figure gave in the financials. They experience the nuts and bolts and basics as it were. In this manner just material realities must be unveiled in the reports as contenders might be peering toward on the subtleties. That is, it is significant not to reveal the "exchange insider facts" of the organization in its reports. A lot of data prompts data over-burden with which contenders may exploit. It ought to likewise be dealt with that what must be incorporated is incorporated as a general rule.

Final answer:

As a CFO of a publicly-traded company, one should focus on providing meaningful and relevant information to shareholders without revealing strategic specifics that would benefit competitors. This balance can be achieved through effective disclosure management.

Explanation:

As the CFO of a publicly-traded company, you must balance between sharing too much information which can aid your competitors and offering comprehensive details to investors for performance evaluation. The key to resolving this conflict lies in disclosure management. More specifically, you should focus on providing meaningful and relevant information to support investors' decision-making without revealing strategic specifics that would help competitors. For example, quantitative information related to sales, cost, profit, and balance sheet items could be released, along with commentary on operational and financial performance. However, strategic plans, detailed product plans and similar items that could give an advantage to competitors should not be disclosed.

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CVP computations. Garrett Manufacturing sold 410,000 units of its product for $68 per unit in 2017. Variable cost per unit is $60, and total fixed costs are $1,640,000.Required:1. Calculate (a) contribution margin and (b) operating income.2. Garrett’s current manufacturing process is labor intensive. Kate Schoenen, Garrett’s production manager, has proposed investing in state-of-the-art manufacturing equipment, which will increase the ­annual fixed costs to $5,330,000. The variable costs are expected to decrease to $54 per unit. ­Garrett expects to maintain the same sales volume and selling price next year. How would acceptance of Schoenen’s proposal affect your answers to (a) and (b) in requirement 1?3. Should Garrett accept Schoenen’s proposal? Explain.

Answers

Answer:

a) 8 dollars

b) 1,640,000

2.-  It should be rejected as decreases operating income to 410,000 from 1,640,000

contribution margin: $14

operating income: $ 410,000

Explanation:

Sales \: Revenue - Variable \: Cost = Contribution \: Margin

68 - 60 = 8

b)

units sold x $8 contribution less fixed cost

410,000 x 8 - 1,640,000 = 1,640,000

2 contribution margin:

68 - 54 = 14

410,000 x 14 - 5,330,000 = 410,000

why it is important to business administration student to study and know the basic principles of income taxation? ​

Answers

Although the benefit principle of taxes is founded on two notions, it is critical for business administration students to learn and understand the fundamental principles of income taxation. The first and most important point is that people who gain from services should pay for them. Second, taxation should be proportional to the amount of benefits or services received.

An income tax is generally a tax levied on persons or corporations (taxpayers) based on their earnings or profits (often referred to as taxable income). In most cases, income tax is calculated as the result of a tax rate multiplied by the taxable income.

Taxation rates may differ depending on the taxpayer's attributes and the source of income.

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PRINCIPAL OF INCOME TAXATION

The benefit principle of taxation is based on two ideas. The first and foremost is that those who benefit from services should be the ones who pay for them. Secondly, people should pay taxes in proportion to the amount of services or benefits they receive.

Explanation:

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