Questions
(Each of the following parts is independent.) According to the Capital Asset Pricing theory, what return...

(Each of the following parts is independent.)

  1. According to the Capital Asset Pricing theory, what return would be required by an investor whose portfolio is made up of 40% of the market portfolio (m) and 60% of Treasury bills (i.e. risk-free asset)?  Assume the risk-free rate is 3% and the market risk premium is 7%?   

  1. You are considering investing in the following two stocks. The risk-free rate is 7 percent and the market risk premium is 8 percent.

Stock

Price Today

Expected Price

in 1 year

Expected Dividend

in 1 year

Beta

X

$20

$22

$2.00

1.0

Y

$30

$32

$1.78

0.9

  1. Compute the expected and required return (using CAPM) on each stock.   
  2. Which asset is worth investing? Support your answer with calculations.   

  1. Which pair of stocks used to form a 2-asset portfolio would have the greatest diversification effect for the portfolio? Briefly explain.

Correlation

Stocks A & B

-0.66

Stocks A & C

-0.42

Stocks A & D

0

Stocks A & E

0.75

  

(d)       Explain the terms systematic risk and unsystematic risk and their importance in determining        investment return.   

In: Finance

A 0.24 kg apple falls from a tree to the ground, 4.0m below. Ignore air resistance....

A 0.24 kg apple falls from a tree to the ground, 4.0m below. Ignore air resistance. Take ground level to be y=0.

A) Determine the apple's kinetic energy, K, the gravitational potential energy of the system, U, and the total mechanical energy of the system, E, when the apple's height above the ground is 4.0 m.

B) Determine the apple's kinetic energy, K, the gravitational potential energy of the system, U, and the total mechanical energy of the system, E, when the apple's height above the ground is 3.0 m.

C) Determine the apple's kinetic energy, K, the gravitational potential energy of the system, U, and the total mechanical energy of the system, E, when the apple's height above the ground is 2.0 m.

D) Determine the apple's kinetic energy, K, the gravitational potential energy of the system, U, and the total mechanical energy of the system, E, when the apple's height above the ground is 1.0 m.

E) Determine the apple's kinetic energy, K, the gravitational potential energy of the system, U, and the total mechanical energy of the system, E, when the apple's height above the ground is 0 m

In: Physics

Here is an example of T-test down blow (it doesn't have to be exactly) I need...

Here is an example of T-test down blow (it doesn't have to be exactly) I need to help with my data which it is about phone service survey. Please help and I really appreciate your time. Remember first data is an example.

A third T-test was conducted to compare the relationship of how far people are willing to travel and how important the affordability of the clinic is (Table 3). The sample group was divided into two categories: people who aren’t willing to travel far (?15 miles) and people who are willing to travel far (?16 miles). It can be concluded that on average people that are willing to travel farther to visit a healthcare, don’t think the affordability of the clinic is as important as the people that aren’t willing to travel far (people that aren’t willing to travel far = 4.71, people that are willing to travel far = 4.11, p = .026). This finding indicates that healthcare consumers on average may be willing to travel farther to visit a specialty clinic or a more reputable clinic. An example of this could be someone from Minneapolis, MN traveling to Rochester, MN to visit Mayo Clinic, one of the most reputable clinics in the world. This data could also tell us that people who can’t afford to travel to a clinic farther away also care more about the affordability of the clinic

they are visiting.

Table 3. How Far People are Willing to Travel vs. Importance of Affordability

Group Statistics

WillingTravel.re

N

Mean

Std. Deviation

Std. Error Mean

Affordability

1. People that   aren’t willing to travel far

21

4.7143

.71714

.93659

.15649

2. People that are willing to travel far

19

4.1053

.21487

Independent Samples Test

Levene's Test for Equality of Variances

t-test for Equality of Means

F

Sig.

t

df

Sig. (2tailed)

Mean

Difference

Std. Error Difference

95% Confidence Interval of the Difference

Lower

Upper

Affordability

Equal variances assumed

Equal variances not assumed

1.101

.301

2.322

38

.026

.60902

.26228

.07806

1.13998

2.291

33.642

.028

.60902

.26582

.06861

1.14944

Here is my data down blow and I need help with interpret or explain just like the example. Thank you so much!

Group Statistics

Gender

N

Mean

Std. Deviation

Std. Error Mean

Cost per line

Male

17

2.9412

1.24853

.30281

Female

18

2.1111

1.18266

.27876

Levene's Test for Equality of Variances

t-test for Equality of Means

F

Sig.

T

df

Sig. (2-tailed)

Mean Difference

Std. Error Difference

95 % confidence interval of the difference

Lower

Upper

Cost per line

Equal variances assumed

.451

.507

2.020

33

.052

.83007

.41093

-.00597

1.66610

Equal variances assumed

2.017

32.584

.052

.83007

.41158

-.00771

1.66784

In: Statistics and Probability

Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, Montana. For its services,...

Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, Montana. For its services, the company has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $23.55 per hundred square feet. However, there is some question about whether the company is actually making any money on jobs for some customers—particularly those located on remote ranches that require considerable travel time.

The owner’s daughter, home for the summer from college, has suggested investigating this question using activity-based costing. After some discussion, she designed a simple system consisting of four activity cost pools. The activity cost pools and their activity measures appear below:

Activity Cost Pool Activity Measure Activity for the Year Cleaning carpets Square feet cleaned (00s) 11,500 hundred square feet Travel to jobs Miles driven 241,000 miles Job support Number of jobs 1,900 jobs Other (organization-sustaining costs and idle capacity costs) None Not applicable

The total cost of operating the company for the year is $353,000 which includes the following costs: Wages $ 144,000 Cleaning supplies 26,000 Cleaning equipment depreciation 14,000 Vehicle expenses 26,000 Office expenses 58,000 President’s compensation 85,000 Total cost $ 353,000 Resource consumption is distributed across the activities as follows:

Distribution of Resource Consumption Across Activities Cleaning Carpets Travel to Jobs Job Support Other Total Wages 79 % 15 % 0 % 6 % 100 % Cleaning supplies 100 % 0 % 0 % 0 % 100 % Cleaning equipment depreciation 75 % 0 % 0 % 25 % 100 % Vehicle expenses 0 % 82 % 0 % 18 % 100 % Office expenses 0 % 0 % 56 % 44 % 100 % President’s compensation 0 % 0 % 30 % 70 % 100 % Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing, resolving issues, and so on. Required: 1. Prepare the first-stage allocation of costs to the activity cost pools. 2. Compute the activity rates for the activity cost pools. 3. The company recently completed a 600 square foot carpet-cleaning job at the Flying N Ranch—a 58-mile round-trip journey from the company’s offices in Bozeman. Compute the cost of this job using the activity-based costing system. 4. The revenue from the Flying N Ranch was $141.30 (600 square feet @ $23.55 per hundred square feet). Calculate the customer margin earned on this job. This is the last question in the assignment. To submit, use Alt + S. To access other questions, proceed to the question map button.Next Visit question mapQuestion 9 of 9 Total9 of 9

In: Accounting

Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, Montana. For its services,...

Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, Montana. For its services, the company has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $22.65 per hundred square feet. However, there is some question about whether the company is actually making any money on jobs for some customers—particularly those located on remote ranches that require considerable travel time. The owner’s daughter, home for the summer from college, has suggested investigating this question using activity-based costing. After some discussion, a simple system consisting of four activity cost pools seemed to be adequate. The activity cost pools and their activity measures appear below:


  Activity Cost Pool                Activity Measure     Activity for the Year       
  Cleaning carpets Square feet cleaned (00s) 14,500 hundred square feet
  Travel to jobs Miles driven 231,500 miles
  Job support Number of jobs 1,700 jobs
  Other (costs of idle capacity and
    organization-sustaining costs)
None Not applicable


     The total cost of operating the company for the year is $358,000, which includes the following costs:


  Wages $ 138,000   
  Cleaning supplies 29,000   
  Cleaning equipment depreciation 19,000   
  Vehicle expenses 34,000   
  Office expenses 57,000   
  President’s compensation 81,000   
  Total cost $ 358,000   


Resource consumption is distributed across the activities as follows:


  Distribution of Resource Consumption Across Activities

Cleaning Carpets Travel to Jobs Job Support Other Total
  Wages 80 % 14 % 0 % 6 % 100 %
  Cleaning supplies 100 % 0 % 0 % 0 % 100 %
  Cleaning equipment depreciation 66 % 0 % 0 % 34 % 100 %
  Vehicle expenses 0 % 80 % 0 % 20 % 100 %
  Office expenses 0 % 0 % 58 % 42 % 100 %
  President’s compensation 0 % 0 % 31 % 69 % 100 %


Job support consists of receiving calls from potential customers at the home office, scheduling
jobs, billing, resolving issues, and so on.


Required:
1.

Prepare the first-stage allocation of costs to the activity cost pools.

      

2. Compute the activity rates for the activity cost pools. (Round your answers to 2 decimal places.)

      

3.

The company recently completed a 6 hundred square foot carpet-cleaning job at the Flying N ranch—a 56.00-mile round-trip journey from the company’s offices in Bozeman. Compute the cost of this job using the activity-based costing system. (Round your intermediate and final answers to 2 decimal places.)

      

4.

The revenue from the Flying N ranch was $135.90 (6 hundred square feet at $22.65 per hundred square feet). Prepare a report showing the margin from this job. (Round your intermediate calculations and final answers to 2 decimal places.)

     

In: Accounting

As part of a study designed to compare hybrid and similarly equipped conventional vehicles, a group...

As part of a study designed to compare hybrid and similarly equipped conventional vehicles, a group tested a variety of classes of hybrid and all-gas model cars and sport utility vehicles (SUVs). Suppose the following data show the miles-per-gallon rating obtained for two hybrid small cars, two hybrid midsize cars, two hybrid small SUVs, and two hybrid midsize SUVs; also shown are the miles per gallon obtained for eight similarly equipped conventional models.

Class Type MPG
Small Car Hybrid 35
Small Car Conventional 30
Small Car Hybrid 42
Small Car Conventional 34
Midsize Car Hybrid 27
Midsize Car Conventional 23
Midsize Car Hybrid 32
Midsize Car Conventional 25
Small SUV Hybrid 27
Small SUV Conventional 21
Small SUV Hybrid 28
Small SUV Conventional 22
Midsize SUV Hybrid 25
Midsize SUV Conventional 17
Midsize SUV Hybrid 26
Midsize SUV Conventional 16

At the α = 0.05 level of significance, test for significant effects due to class, type, and interaction.

Find the value of the test statistic for class. (Round your answer to two decimal places.)

Find the p-value for class. (Round your answer to three decimal places.)

p-value =

State your conclusion about class.

Because the p-value ≤ α = 0.05, class is not significant.Because the p-value > α = 0.05, class is significant.    Because the p-value > α = 0.05, class is not significant.Because the p-value ≤ α = 0.05, class is significant.

Find the value of the test statistic for type. (Round your answer to two decimal places.)

Find the p-value for type. (Round your answer to three decimal places.)

p-value =

State your conclusion about type.

Because the p-value > α = 0.05, type is significant.Because the p-value ≤ α = 0.05, type is significant.    Because the p-value > α = 0.05, type is not significant.Because the p-value ≤ α = 0.05, type is not significant.

Find the value of the test statistic for interaction between class and type. (Round your answer to two decimal places.)

Find the p-value for interaction between class and type. (Round your answer to three decimal places.)

p-value =

State your conclusion about interaction between class and type.

Because the p-value ≤ α = 0.05, interaction between class and type is not significant.Because the p-value ≤ α = 0.05, interaction between class and type is significant.    Because the p-value > α = 0.05, interaction between class and type is significant.Because the p-value > α = 0.05, interaction between class and type is not significant.

In: Statistics and Probability

As part of a study designed to compare hybrid and similarly equipped conventional vehicles, a group...

As part of a study designed to compare hybrid and similarly equipped conventional vehicles, a group tested a variety of classes of hybrid and all-gas model cars and sport utility vehicles (SUVs). Suppose the following data show the miles-per-gallon rating obtained for two hybrid small cars, two hybrid midsize cars, two hybrid small SUVs, and two hybrid midsize SUVs; also shown are the miles per gallon obtained for eight similarly equipped conventional models.

Class Type MPG
Small Car Hybrid 36
Small Car Conventional 29
Small Car Hybrid 43
Small Car Conventional 33
Midsize Car Hybrid 28
Midsize Car Conventional 22
Midsize Car Hybrid 33
Midsize Car Conventional 24
Small SUV Hybrid 27
Small SUV Conventional 21
Small SUV Hybrid 28
Small SUV Conventional 22
Midsize SUV Hybrid 23
Midsize SUV Conventional 19
Midsize SUV Hybrid 24
Midsize SUV Conventional 18

At the α = 0.05 level of significance, test for significant effects due to class, type, and interaction.

Find the value of the test statistic for class. (Round your answer to two decimal places.)___

Find the p-value for class. (Round your answer to three decimal places.)

p-value = ____

State your conclusion about class.

Because the p-value ≤ α = 0.05, class is significant.

Because the p-value > α = 0.05, class is not significant.    

Because the p-value ≤ α = 0.05, class is not significant.

Because the p-value > α = 0.05, class is significant.

Find the value of the test statistic for type. (Round your answer to two decimal places.)___

Find the p-value for type. (Round your answer to three decimal places.)

p-value = ____

State your conclusion about type.

Because the p-value > α = 0.05, type is not significant.

Because the p-value > α = 0.05, type is significant.    

Because the p-value ≤ α = 0.05, type is significant.

Because the p-value ≤ α = 0.05, type is not significant.

Find the value of the test statistic for interaction between class and type. (Round your answer to two decimal places.)___

Find the p-value for interaction between class and type. (Round your answer to three decimal places.)

p-value = ____

State your conclusion about interaction between class and type.

Because the p-value ≤ α = 0.05, interaction between class and type is significant.

Because the p-value > α = 0.05, interaction between class and type is significant.    

Because the p-value ≤ α = 0.05, interaction between class and type is not significant.

Because the p-value > α = 0.05, interaction between class and type is not significant.

In: Statistics and Probability

Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, Montana. For its services,...

Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, Montana. For its services, the company has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $22.65 per hundred square feet. However, there is some question about whether the company is actually making any money on jobs for some customers—particularly those located on remote ranches that require considerable travel time. The owner’s daughter, home for the summer from college, has suggested investigating this question using activity-based costing. After some discussion, a simple system consisting of four activity cost pools seemed to be adequate. The activity cost pools and their activity measures appear below:


  Activity Cost Pool                Activity Measure     Activity for the Year       
  Cleaning carpets Square feet cleaned (00s) 14,500 hundred square feet
  Travel to jobs Miles driven 231,500 miles
  Job support Number of jobs 1,700 jobs
  Other (costs of idle capacity and
    organization-sustaining costs)
None Not applicable


     The total cost of operating the company for the year is $358,000, which includes the following costs:


  Wages $ 138,000   
  Cleaning supplies 29,000   
  Cleaning equipment depreciation 19,000   
  Vehicle expenses 34,000   
  Office expenses 57,000   
  President’s compensation 81,000   
  Total cost $ 358,000   


Resource consumption is distributed across the activities as follows:


  Distribution of Resource Consumption Across Activities

Cleaning Carpets Travel to Jobs Job Support Other Total
  Wages 80 % 14 % 0 % 6 % 100 %
  Cleaning supplies 100 % 0 % 0 % 0 % 100 %
  Cleaning equipment depreciation 66 % 0 % 0 % 34 % 100 %
  Vehicle expenses 0 % 80 % 0 % 20 % 100 %
  Office expenses 0 % 0 % 58 % 42 % 100 %
  President’s compensation 0 % 0 % 31 % 69 % 100 %


Job support consists of receiving calls from potential customers at the home office, scheduling
jobs, billing, resolving issues, and so on.


Required:
1.

Prepare the first-stage allocation of costs to the activity cost pools.

      

2. Compute the activity rates for the activity cost pools. (Round your answers to 2 decimal places.)

      

3.

The company recently completed a 6 hundred square foot carpet-cleaning job at the Flying N ranch—a 56.00-mile round-trip journey from the company’s offices in Bozeman. Compute the cost of this job using the activity-based costing system. (Round your intermediate and final answers to 2 decimal places.)

      

4.

The revenue from the Flying N ranch was $135.90 (6 hundred square feet at $22.65 per hundred square feet). Prepare a report showing the margin from this job. (Round your intermediate calculations and final answers to 2 decimal places.)

     

In: Accounting

Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, Montana. For its services,...

Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, Montana. For its services, the company has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $23.40 per hundred square feet. However, there is some question about whether the company is actually making any money on jobs for some customers—particularly those located on remote ranches that require considerable travel time. The owner’s daughter, home for the summer from college, has suggested investigating this question using activity-based costing. After some discussion, a simple system consisting of four activity cost pools seemed to be adequate. The activity cost pools and their activity measures appear below:

Activity Cost Pool Activity Measure Activity for the year
Cleaning Carpets Square Feet Cleaned (00s) 9,000 Hundred Square Feet
Travel to Jobs Miles Driven 354,000 Miles
Job Support Number of Jobs 1,900 Jobs

Other (Costs of Idle

capacity and organization-sustaining costs

None Not Applicable

The total cost of operating the company for the year is $352,000, which includes the following costs:

Wages $136,000
Cleaning Supplies $34,000
Cleaning equipment depriciation $14,000
Vehicle expenses $26.000
Office expenses $61,000
President's Compensation $81,000
Total Cost $352,000

Resource consumption is distributed across the activities as follows:

Distribution of Resource Consumption Across Activities  

Cleaning Carpets Travel to Jobs Job Support Other Total
Wages 75% 16% 0% 9% 100%
Cleaning Supplies 100% 0% 0% 0% 100%
Cleaning Equipment Depriciation 73% 0% 0% 27% 100%
Vehicle Expense 0% 75% 0% 25% 100%
Office Expense 0% 0% 61% 39% 100%
President's compensation 0% 0% 33% 67% 100%

Job support consists of receiving calls from potential customers at the home office, scheduling
jobs, billing, resolving issues, and so on.

Required:

1. Prepare the first-stage allocation of costs to the activity cost pools.

2. Compute the activity Rates for the activity cost pools. (Round your answer to 2 decimal places)

3. The company recently completed a 4 hundred square foot carpet-cleaning job at the Flying N ranch—a 54.00-mile round-trip journey from the company’s offices in Bozeman. Compute the cost of this job using the activity-based costing system. (Round your intermediate and final answers to 2 decimal places.)

4. The revenue from the Flying N ranch was $93.60 (4 hundred square feet at $23.40 per hundred square feet). Prepare a report showing the margin from this job. (Round your intermediate calculations and final answers to 2 decimal places.)

In: Accounting

Problem 7-20 Evaluating the Profitability of Services [LO7-2, LO7-3, LO7-4, LO7-5] Gallatin Carpet Cleaning is a...

Problem 7-20 Evaluating the Profitability of Services [LO7-2, LO7-3, LO7-4, LO7-5]

Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, Montana. For its services, the company has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $23.95 per hundred square feet. However, there is some question about whether the company is actually making any money on jobs for some customers—particularly those located on remote ranches that require considerable travel time. The owner’s daughter, home for the summer from college, has suggested investigating this question using activity-based costing. After some discussion, she designed a simple system consisting of four activity cost pools. The activity cost pools and their activity measures appear below:

Activity Cost Pool Activity Measure Activity for the Year
Cleaning carpets Square feet cleaned (00s) 9,000 hundred square feet
Travel to jobs Miles driven 285,500 miles
Job support Number of jobs 2,100 jobs
Other (organization-sustaining costs and idle capacity costs) None Not applicable

The total cost of operating the company for the year is $366,000 which includes the following costs:

Wages $ 146,000
Cleaning supplies 33,000
Cleaning equipment depreciation 13,000
Vehicle expenses 28,000
Office expenses 61,000
President’s compensation 85,000
Total cost $ 366,000

Resource consumption is distributed across the activities as follows:

Distribution of Resource Consumption Across Activities
Cleaning Carpets Travel to Jobs Job Support Other Total
Wages 79 % 13 % 0 % 8 % 100 %
Cleaning supplies 100 % 0 % 0 % 0 % 100 %
Cleaning equipment depreciation 68 % 0 % 0 % 32 % 100 %
Vehicle expenses 0 % 79 % 0 % 21 % 100 %
Office expenses 0 % 0 % 57 % 43 % 100 %
President’s compensation 0 % 0 % 29 % 71 % 100 %

Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing, resolving issues, and so on.

Required:

1. Prepare the first-stage allocation of costs to the activity cost pools.

2. Compute the activity rates for the activity cost pools.

3. The company recently completed a 800 square foot carpet-cleaning job at the Flying N Ranch—a 58-mile round-trip journey from the company’s offices in Bozeman. Compute the cost of this job using the activity-based costing system.

4. The revenue from the Flying N Ranch was $191.60 (800 square feet @ $23.95 per hundred square feet). Calculate the customer margin

numbers 1, 2, and 3 I got. I just cant find number 4. I always seem to have a hard time with customer margin! Thanks for all the help

In: Accounting