Q: for Julu that includor reveDue and spending variances and activity variances. (Indicate
A:
Q: What is the interpretation of the direct-material quantity variance?
A: Direct material quantity variance is a variance analysis tool for manufacturing companies. It shows…
Q: b) Why are separate price and quantity variances computed?
A: Variances is a word used for finding out the difference between the actual and standard levels set…
Q: TOTAL DM Variance,
A: Standard costing is used to determine the estimated expenses for the production process. In this…
Q: Calculate the following and determine if variances are favorable
A: Compute the total standard material cost.
Q: Give the general formulas for determining cost and efficiency variances.
A: Cost variance: Cost variance shows the difference of standard cost and actual costs. Efficiency…
Q: explain activity variances and spending variances with example
A: Variance is defined as the difference between the actual and the budgeted or expected amount.…
Q: Explain the difference between a favorable and an unfavorable variance.
A: Variance: The term variance is used under standard costing system. Variance is actually the…
Q: Total risk is measured by and systematic risk is measured by Beta; standard deviation. Standard…
A: There are two types of risks systematic risk and unsystematic risk
Q: In two or three paragraphs explain the purpose of variance analysis and its benefits and drawbacks.
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Q: The incom
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Q: What is an activity variance and what does it mean?
A: Variance: Variance refers to the difference level in the actual cost incurred and standard cost. The…
Q: From the following particulars, calculate the following material variances and give their…
A: Solution:- a)Calculation of Material Cost variance as follows under:- It is difference between the…
Q: Define variance
A: Variance in statistics is the calculation of the distribution in an information source between the…
Q: Distinguish between a favorable variance and an unfavorable variance.
A: Favorable Variance: Favorable variance is the variation in the actual and planned output which is…
Q: variances
A: Variance means change Variances arise after comparison with standard to Actual. Types of Variances…
Q: Explain the concept of iso-expected return lines, iso-variance ellipses, and the critical line and…
A: Minimum variance frontier: It is a frontier that identifies those portfolios that have a minimum…
Q: Write down two possible causes for each variance.
A: Variance refers to the differs between the budgeted and actual. It may be favourable and…
Q: Give an example of a Direct Material Price Variance with figures and calculate the variance
A: Direct Material Price Variance is the difference between actual material cost and standard cost of…
Q: What is favorable variance? Give three examples?
A: Favorable Variance: Favorable variance is the variation in the actual and planned output which is…
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.
Q: Define and explain the relationship between simple variance analysis and flexible variance analysis.
A: Simple variances analysis is the study of deviations of the actual result against the forecasted…
Q: naterials yield variance.
A: We have to convert standard data to Actual Data Material A 1500 Material B. 625 Material C. 1000…
Q: What are the variances in a 4-variance analysis?
A: Variable overhead spending variance Variable overhead efficiency variance Fixed overhead spending…
Q: Define unfavourable variance.
A: Variance: Variance refers to the difference level in the actual cost incurred and standard cost. The…
Q: Pick out the two most significant variances that you computed in (1) above. Explain tMs. Dunn…
A: The difference between the standard figures and the actual results are called variances.
Q: Complete the standard cost variance analysis
A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: What is unfavorable variance? Give three examples?
A: Unfavorable Variance: Unfavorable variance is the variation in the actual and planned output which…
Q: is direct material variance a measure of?
A: Direct material variance is the difference between standard material costs and actual material costs…
Q: B. Given the possible causes of the variances, identify the variance for each number and whether…
A: Identifying the names of variances and whether they are favourable or unfavourable is shown…
Q: re all variances investigated? Why or why not?
A: Variance: A variance reflects the degree by which the actual results vary from the anticipated or…
Q: How can we determine the mean and variance of the NPW on the basis of the three NPW estimates?
A: Identify the Rate, project life. Then Identify the cash flows. Compute the Present worth and net…
Q: Please calculate the variance
A: Expected Return or mean is the average return of the data given. Risk is the volatility around the…
Q: Define variance analysis.
A:
Q: In performing Variance Analysis for Direct Material costs, the variances include Price and Rate…
A: While performing Variance analysis for Direct Material Costs include Direct Material Price Variance…
Q: d the (a) variance and (b) standard deviation
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Q: Required: Use the variance formulas to compute the following variances. (Indicate the effect of each…
A: Variable-overhead spending variance $54,000 U Variable-overhead efficiency variance $42,000 U…
Q: Explain how you find the portion of the mean-variance-frontier that is the efficient frontier and…
A: There are two parts of portfolio one is return and another is risk.
b) Calculate the variance and standard deviation.
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- The possible returns from investing in BestMax share are as follows: State of economy Probability of state of economy Return if state occurs Strong 0.26 96% Normal 0.51 12% Weak 0.23 -83% Based on the above information, a. What is 'risk' in the context of financial decision-making? Explain.Calculate the covariance between the following assets [6] State of the world Probability (Pi) Return for stock A Return for Stock B Expansion 0.25 32% 5% Normal 0.50 14% 15% Recession 0.25 4% 25%Assume the following ratios areconstant: Total asset turnover 2.8Profit margin 6.8 % Equitymultiplier 2 Payout ratio 30 %What is the sustainable growthrate? (Do not round intermediate Training calc
- 13:19 M O - Fnan301FinalExamFall2...ba1995f96f6315dff9f7 5 ii) Capital gains yield iii) Total rate of return (yield) 4. Based on the following information Calculate State of Economy Probability of State of Economy Rate of Return if State Occurs Stock A Stock B Recession 0.20 0.05 -0.17 Normal 0.55 0.08 0.12 Вoom 0.25 0.13 0.29 a) The expected return of Stock A (7.5 points) b) The expected return of Stock B (7.5 points) c) The expected return of Portfolio where you invest $35,000 in Stock A and $45,000 in Stock B (5 points) d) Suppose Stock A has a beta of 0.8 and Stock B has a beta of 1.3. If you invest $35,000 in Stock A and $45,000 in Stock B, what is the beta of this portfolio? (5 points) e) Expected return on the market (RM) is 10% and the risk-free (rr) is 4%. What must the the expected return on the portfolio according to CAPM? (Use the beta you have calculated in section d) for CAPM) (5 points) ||State of Economy Probability ABC Company Expected Return Expected Return XYZ Company Very Poor 0.30 -9% -19% Poor 0.25 -8% -6% Good 0.15 8% 9% Very Good 0.30 34% 33% Expected Return 6.70% 4.05% A) Calculate the covariance of the portfolio. Please answer as a decimal to 4 decimal places. Answer:Ian owns a two-stock portfolio that invests in Blue Llama Mining Company (BLM) and Hungry Whale Electronics (HWE). Three-quarters of Ian's portfolio value consists of BLM's shares, and the balance consists of HWE's shares. Each stock's expected return for the next year will depend on forecasted market conditions. The expected returns from the stocks in different market conditions are detailed in the following table: Market Condition Probability of Occurrence Blue Llama Mining Hungry Whale Electronics Strong 0.50 27.5% 38.5% Normal 0.25 16.5% 22% Weak 0.25 -22% -27.5% Calculate expected returns for the individual stocks in Ian's portfolio as well as the expected rate of return of the entire portfolio over the three possible market conditions next year. • The expected rate of return on Blue Llama Mining's stock over the next year is • The expected rate of return on Hungry Whale Electronics's stock over the next year is • The expected rate of return on Ian's portfolio over the next year…
- You are given the following expected returns for a share under various scenarios. Scenario Probability Expected returnBoom16 % 34.6%Normal41 % 4.4% Recession 43% - 5.2% Calculate the expected return as a percent. Please enter the number as a percentage without the % sign (as you do for the interest rate in the calculator). For example, if your answer is 7.89%, then simply answer "7.89".View Policies Current Attempt in Progress Calculate the correlation coefficient (PA) for the following situation: (Round intermediate calculations and the final answer to 4 decimal place, e.g. 0.2921.) State of the economy High growth Moderate Recession Probability of Expected return on occurrence stock A in this state 47.0% 26.0% -14.0% 25% 20% 55% Correlation coefficient Expected return on stock B in this state 64.0% 34.0% -24.0%suppose your expectations regarding the stock market are as follows: State of the Economy Probability HPR Boom 0.2 42% Normal growth 0.6 23 Recession 0.2-17 E(r) = Σss = 1p(s)r( s) Var(r)=\sigma 2 = Σss = 1p(s)[r(s)-E(r)]2 SD (r)=\sigma = Var(r) ✓ Required: Use above equations to compute the mean and standard deviation of the HPR on stocks. (Do not round intermediate calculations. Round your answers to 2 decimal places.)
- Listed below is the return probability distribution associated with the stocks of XYZ Company and the market portfolio under different states of the economy: State Recession Normal Boom 0.00452 O 0.00552 0.00652 Probability O 0.00752 0.4 0.3 0.3 XYZ Return What is the covariance between XYZ return and Market return? -3% 14% 20% Market Return 2% 8% 16%Measuring risk and rate return) Given the following holding-period returns, calculate the average return for the market. Month Champ Inc. Market 1 2.8% 1.8% 2 3.2% 1.2% 3 9.0% 11.0% 4 -2.6% -1.0% 5 -2.9% -4.7% 6 12.0% 8.0% answer is 2.72%Consider the following information: State of Economy Probability of State of Economy Rate of Return if State Occurs Stock A Stock B Recession 0.30 0.05-0.15 Normal 0.55 0.15 0.15 Boom 0.15 0.20 0.35 Calculate the expected return for the two stocks.