Three Mutual Funds: Expected Return on Stock Fund (S) = 12%
Expected Return on Bond Fund (B) = 8%
Standard Deviation on Stock Fund (S) = 20%
Standard Deviation on Bond Fund (B) = 10%
Expected Return on T-Bill = 4%
Standard Deviation on T-Bill= ?
Correlation between S and B is 0.15
Formula: std2,p = (w2,1)(std2,1)+(w2,2)(std2,2)+(2w1w 2)Cov(r1r2)
Cov(r1r2)= (p1,2)(std1)(std2)
To construct a minimum-variance portfolio, one needs put 16% weights on Stock, and the rest on
Bond. To construct an optimal risky portfolio, one needs put 38% weights on Stock, and the rest
on Bond.
1) How to use risky assets only to construct an efficient portfolio P with a return of 10%?
What’s portfolio P’s standard deviation?
2) How to use risky assets and the risky free T-bill to construct an efficient portfolio Y with
a return of 10%? What’s portfolio Y’s standard deviation?

Last week, linda's commission check was $84. if she earns a 12.5% commission on sales, what were her total sales?

In december of 2004, the company you own entered into a 20-year contract with a grain supplier for daily deliveries of grain to its hot dog bun manufacturing facility. the contract called for "10,000 pounds of grain" to be delivered to the facility at the price of $100,000 per day. until february 2017, the supplier provided processed grain which could easily be used in your manufacturing process. however, no longer wanting to absorb the cost of having the grain processed, the supplier began delivering whole grain. the supplier is arguing that the contract does not specify the type of grain that would be supplied and that it has not breached the contract. your company is arguing that the supplier has an onsite processing plant and processed grain was implicit to the terms of the contract. over the remaining term of the contract, reshipping and having the grain processed would cost your company approximately $10,000,000, opposed to a cost of around $1,000,000 to the supplier. after speaking with in-house counsel, it was estimated that litigation would cost the company several million dollars and last for years. weighing the costs of litigation, along with possible ambiguity in the contract, what are three options you could take to resolve the dispute? which would be the best option for your business and why?

Performance bicycle company makes steel and titanium handle bars for bicycles. it requires approximately 1 hour of labor to make one handle bar of either type. during the most recent accounting period, barr company made 7,700 steel bars and 2,300 titanium bars. setup costs amounted to $35,000. one batch of each type of bar was run each month. if a single company-wide overhead rate based on direct labor hours is used to allocate overhead costs to the two products, the amount of setup cost assigned to the steel bars will be: