6% 8.6% Std. Dev 0.1% 5.0% 3.9% 2.1% 4.9% Annual 0.4% 17.2% 13.4% 7.4% 17.1% Correlation Russell S&P 500 LT Bond EAFE Russell 1.000 S&P 500 0.780 1.000 LT Bond 0.191 0.413 1.000 EAFE 0.441 0.539 0.174 1.000 Q2. Optimal Asset Allocation a) For each portfolio return highlighted in yellow in the spreadsheet ‘Efficient Frontier’‚ calculate the minimum unconstrained portfolio standard deviation. Port Mean Sum of Weights Return Port wgts. Target Port Mean St. Dev
Premium Standard deviation Arithmetic mean Investment
Invisible consumption driver The business market is like the battlefield. But‚ in this battlefield‚ there is no gunpowder smoke. Businesses compete with each other. They use many measures to stimulate consumption and outcompete competitors. There is a typical phenomenon from our daily life‚ rationalization smoke. What is rationalization? Rationalization related to the reasonableness of a price for a given product and the price depends on the comparative value of the product. Then a business
Premium Marketing Business Consumer
indirect costs are allocated using only one or two cost pools. All or most costs are identified as output unit-level costs. Products make diverse demands on resources because of differences in volume‚ process steps‚ batch size‚ or complexity. Products that a company is well suited to make and sell show small profits while products for which a company is less suited show large profits. 9-5 (1) Identify the activities that consume resources and assign costs to them. (2) Identify the cost driver(s)
Premium Costs Cost Cost driver
products. Chuck questioned if the current cost-management system was providing the management with accurate data about product costs. In a traditional‚ volume-based product-costing system‚ only a single predetermine overhead rate is used. All manufacturing-overhead costs are combined into one cost pool‚ a grouping of individual indirect cost items‚ and they are applied to products on the basis of a single variable that costs over a given time span (cost driver) that is closely related to production
Premium Cost Costs Manufacturing
Research department and Global Marketing department. NASA and EROW operate as profit centers each produce butyl and halobutyl dedicated to regional customers. Both of the centers have relatively flexible producing schedule to satisfy the increasing demand of halobutyl. After establishing the second plant in Sarnia‚ NASA is able to have each plant producing halobutyl and regular butyl. EROW‚ which has been running near capacity since 1980‚ solely focus on the production of halobutyl. Any idle capacity is
Premium Costs Variable cost Total cost
Journal. Cost Management and Strategy – refer to your assigned questions and problems Cost Drivers and Basic Cost Concepts -- What is a cost? Define cost pools. What is a cost object? cost assignment? Contrast a direct cost with an indirect cost. Define cost allocation. What is an allocation base? Contrast cost assignment with cost allocation. What is a direct material? Direct labor? Indirect material? Indirect labor? factory overhead? What are conversion costs? Prime costs? What are the four
Premium Management accounting Costs Variable cost
Allocation of scarce Medical Resources Prepared By: Noura B. Younes Supervised By: Dr. Khalid Al Ali Course : BIOM550: Medical Lab. Laws & Ethics L01 Abstract Allocation of scarce medical resources and access to medical care are major bioethical concerns in today’s society. Allocation refers to the distribution of available health –care resources. Access refers to whether people who should have health care are able to receive that care. Winners in the arena of access to health care are
Premium Medicine Health care Health
Cost reduction Generally defined as the act of cutting costs to improve profitability. Cost reduction‚ should therefore‚ not be confused with cost saving and cost control. Cost saving could be a temporary affair and may be at the cost of quality. Cost reduction implies the retention of essential characteristics and quality of the product and thus it must be confined to permanent and genuine savings in the costs of manufacture‚ administration‚ distribution and selling‚ brought about by elimination
Premium Supply chain management Costs Cost
accounting profits and economic profits for Gomez’s pottery. Explicit costs: $37‚000 (= $12‚000 for the helper + $5‚000 of rent + $20‚000 of materials). Implicit costs: $22‚000 (= $4‚000 of forgone interest + $15‚000 of forgone salary + $3‚000 of entreprenuership). Accounting profit = $35‚000 (= $72‚000 of revenue - $37‚000 of explicit costs); Economic profit = $13‚000 (= $72‚000 - $37‚000 of explicit costs - $22‚000 of implicit costs). 8-4 (Key Question) Complete the following table by calculating
Premium Economics of production Variable cost Costs
Connections and Information Acquisition in Capital Allocation Mariassunta Giannetti Xiaoyun Yu Stockholm School of Economics‚ Kelley School of Business CEPR and ECGI Indiana University mariassunta.giannetti@hhs.se xiyu@indiana.edu August 2010 This paper was previously circulated under the title “Favoritism or Markets in Capital Allocation?” We thank Franklin Allen‚ Utpal Bhattacharya‚ Philip Bond‚ Brian Bucks‚ Chun Chang‚ Todd Gormley‚ Denis Gromb‚ Dalida Kadyrzhanova
Premium Investment Factors of production Entrepreneur