Single Plantwide Factory Overhead Rate Scrumptious Snacks Inc. manufactures three types of snack foods: tortilla chips, potato chips, and pretzels. The company has budgeted the following costs for the upcoming period: Factory depreciation $9,472 Indirect labor 23,475 Factory electricity 2,677 Indirect materials 5,560 Selling expenses 13,179 Administrative expenses 7,413 Total costs $61,776 Factory overhead is allocated to the three products on the basis of processing hours.The products had the following production budget and processing hours per case: Budgeted Processing Hours Volume (Cases) Per Case Tortilla chips 3,000 0.25 Potato chips 6,000 0.10 Pretzels 3,500 0.30 Total 12,500 If required, round all per unit answers to the nearest cent. Determine the single plantwide factory overhead rate. $ 86.25 X per processing hour.

Answers

Answer 1

Answer:

The single plantwide overhead rate= $4.94

Explanation:

The single factory wide overhead absorption rate is that which is used to charge overhead to different product units. The amount to be charged to units would depend on the number of processing hours required

The single plantwide overhead rate = Budgeted overhead/Budgeted processing hours

= 61,776/12,500=$4.94 per hour

The single plantwide overhead rate= $4.94


Related Questions

If a check correctly written and paid by the bank for $646 is incorrectly recorded on the company's books for $664, the appropriate treatment on the bank reconciliation would be to deduct $646 from the book's balance. deduct $18 from the bank's balance. subtract $18 from the book's balance. add $18 to the book's balance.

Answers

Answer:

See below

Explanation:

Bank reconciliation occurs basically when there is a difference between the bank statement balance and cash. With regards to the above, the error should be treated thus in the bank reconciliation.

Since the check written and paid by the bank is $646, while it is written in the company's book as $664 , then a book balance of $18 is added which is the difference between $664 and $646

The last dividend paid by Wilden Corporation was $3.50. The dividend growth rate is expected to be constant at 1.5% for 2 years, after which dividends are expected to grow at a rate of 8.0% forever. The firm's required return (rs) is 12.0%. What is the best estimate of the current stock price? Select the correct answer. a. $87.92 b. $83.66 c. $82.24 d. $85.08 e. $86.50

Answers

Answer:

b. $83.66

Explanation:

The computation of the best estimated price of the current stock price is shown below:

But before that following calculations need to be done

Dividend at year 0 = $3.50

Dividend at year 1 = $3.50 × 1.015 = $3.5525

Dividend at year 2 = $3.5525 × 1.015 = $3.6058

Dividend at year 3 = $3.6058 × 1.08 = $3.8943

Now price at year 2 is

= $3.8943 ÷ (12% - 8%)

= $97.3563

Now the current stock price is

= $3.5525 ÷ (1.12) +  ($3.6058 + $97.3563)÷ (1.12)^2

= $3.1719 + $8.4863

= $83.66

Assume that you manage a risky portfolio with an expected rate of return of 15% and a standard deviation of 30%. The T-bill rate is 10%. Suppose that you have a client that prefers to invest in your risky portfolio a proportion (y) of his total investment budget so that his overall portfolio will have an expected rate of return of 15%. What is the investment proportion

Answers

Answer:

The proportion of the investment is 100%.

Explanation:

This can be calculated using the following formula:

Rportfolio = (y * Rrisky) + ((1 - y) * Ttbill) ..................... (1)

Where;

Rportfolio = Overall portfolio expected rate of return = 15%. or 0.15

Rrisky = risky portfolio expected rate of return = 15%, or 0.15

Ttbill = T-bill rate = 10%, or 0.10

Substituting the values into equation (1) and solve for y, we have:

0.15 = (y * 0.15) + ((1 - y) * 0.10)

0.15 = 0.15y + 0.10(1 - y)

0.15 = 0.15y + 0.10 - 0.10y

0.15 - 0.10 = 0.15y - 0.10y

0.05 = 0.05y

y = 0.05 / 0.05

y = 1.00, or 100%

Therefore, the proportion of the investment is 100%.

Cost pools are: A. costs that are accumulated before being allocated to cost objects on some common basis. B. costs that are relevant to decision-making but irrelevant to financial reporting. C. product costs that are assigned to cost objects using direct labor or machine hours. D. accounts in the product life cycle from research and development to customer service.

Answers

Answer:

A. costs that are accumulated before being allocated to cost objects on some common basis.

Explanation:

Cost pools are costs that are accumulated before being allocated to cost objects on some common basis.

A fee charged by a mutual fund is

Answers

Answer:

Sometimes these fees are called: expense ratio, management fee or an operating expense. Hope this helps!

On May 31, Money Corporation's Cash account showed a balance of $17,000 before the bank reconciliation was prepared. After examining the May bank statement and items included with it, the company's accountant found the following items: Checks outstanding $ 2,850 Deposits outstanding 3,200 NSF check 120 Service fees 110 Error: Money Corp. wrote a check for $50 but recorded it incorrectly for $500. What is the amount of cash that should be reported in the company's balance sheet as of May 31

Answers

Answer:

$17,460

Explanation:

The computation of adjusted cash balance is seen below;

Cash account balance

$17,000

NSF check

$120

Service fees

($110)

Amended mistake

$450

Adjusted cash balance

$17,460

The amount of cash that should be reported in the company's balance sheet as of May 31 is $17,460.

Here, the outstanding check and deposit in transit are adjustment for the bank balance and not the firm's cash accounting.

Also, we need to look for the data such as non sufficient funds, service fees etc which were not known until the bank statement was received.

Consider a consumer who is contemplating a new automobile purchase. She has narrowed her decision down to two brands, Brand X and Brand Y. She has identified gas mileage, price, warranty, and styling to be important attributes to consider in her decision. Her evaluative ratings (e) for each attribute and her beliefs of how each brand performs on a given attribute (b) are given below: Brand X Brand Y Attribute e b b Mileage 2 6 4Low Price 3 2 2Warranty -1 1 3Design 1 10 5 Refer to the Automobile Scenario. Based on the attitude toward-the-object model, what is the consumer's overall attitude o toward Brand Y? a. 23 b. 16 c. 17d. 11e. 27

Answers

Answer:

27

Explanation:

The information that follows pertains to Esther Food Products: At December 31, 2018, temporary differences were associated with the following future taxable (deductible) amounts: Depreciation $ 70,000 Prepaid expenses 30,000 Warranty expenses (12,000 ) b. No temporary differences existed at the beginning of 2018. c. Pretax accounting income was $115,000 and taxable income was $27,000 for the year ended December 31, 2018. d. The tax rate is 45%. Required: Complete the following table given below and prepare the appropriate journal entry to record income taxes for 2018. x Tax Rate = Tax $ Recorded as: Pretax accounting income $ 112,000 Permanent differences x =Income subject to taxation x =Temporary Differences x =Income taxable in current year x =Record 2021 income tax

Answers

Answer:

1. Income taxable in current year $27,000.00 45% $12,150 Income Tax Payable

2. 31-Dec-18

Income tax expense Dr $17,250

Deferred tax assets Dr $12,150

Cr To Income taxes payable $12,150

Cr To Deferred tax liability $17,250

Explanation:

1. Computation of the given table to record income taxes for 2018

Particulars Amount Rate of Tax Tax Recorded as

Pretax accounting income $115,000.00

Permanent difference $0.00

Income subject to taxation

$115,000.00 45% $17,250 Income tax expense

TEMPORARY DIFFERENCE:

Depreciation -$70,000.00 45% -$31,500 Deferred tax liability

Prepaid Expenses -$30,000.00 45% -$13,500 Deferred tax liability

Warranty expense $27,000.00 45% $12,150 Deferred tax assets

Income taxable in current year $27,000.00 45% $12,150 Income Tax Payable

2. Preparation of the appropriate journal entry to record income taxes for 2018.

31-Dec-18

Income tax expense Dr $17,250

Deferred tax assets Dr $12,150

Cr To Income taxes payable $12,150

Cr To Deferred tax liability $17,250

(To record income tax expense)

Answer:

..............

......

..

Jenna has been working at Firenzi Entertainment Group for the past 3 years as a location scout. One of Jenna's chief responsibilities is to travel with a team of 5 people to international locations to try to find potential sets for films. Jenna also has a legal background and previous experience working as an entertainment agent. She is the only one on her team with this experience. Therefore, Jenna's secondary role is writing the license deal and various contracts once the location has been found. Eighty percent of her job can be sitting at a desk writing the agreements and negotiating deals over the phone. In the past year Jenna has been suffering from migraines which trigger vertigo and dizziness. She has been told by two doctors not to travel because the plane compression will make the migraines worse. Jenna brings the proper medical paperwork and lets her boss know she won't be able to travel. Her boss says that is a requirement of the job and if she can't travel then she can no longer perform her role and would be terminated. Jenna would like some advice from you whether the American With Disabilities Act will protect her. 1) What are the relevant rules under the ADA that pertain here

Answers

Answer:

One Of Jenna's Chief Responsibilities Is To Travel With A Team Of 5 People To International Locations To Try To Find Potential Sets For Films. Jenna Also Has A Legal Background And Previous Experience Working As An ... Jenna has been working at Firenzi Entertainment Group for the past 3 years as a  location scout.

If investing $1,000 for a year, how frequently is simple interest paid on the principal investment?
daily
annually
never
hourly

Answers

Answer:

your intrest is probally 5% or 0.5%

Explanation:

Jose purchased a delivery van for his business through an online auction. His winning bid for the van was $27,250. In addition, Jose incurred the following expenses before using the van: shipping costs of $840; paint to match the other fleet vehicles at a cost of $1,800; registration costs of $4,488, which included $4,200 of sales tax and an annual registration fee of $288; wash and detailing for $87; and an engine tune-up for $337

Required:
What is Jose’s cost basis for the delivery van?

Answers

Answer:

$34,090

Explanation:

Calculation to determine Jose's cost basis for the delivery van

Using this formula

Delivery van cost basis=Price + Shipping cost + Paint + Sales tax

Let plug in the formula

Delivery van cost basis=$27,250 + $840 + $1,800 + $4,200

Delivery van cost basis = $34,090

Therefore Jose's cost basis for the delivery van will be $34,090

the impact of inflation in businesses​

Answers

Answer:

Rapidly rising prices not only affect the price consumers pay, they also affect the cost businesses have to pay for materials and inventory. When replacement inventory costs more than the inventory you just sold, it can lead to inventory shortages.

Explanation:

I hope it helped

One year ago, the Jenkins Family Fun Center deposited $5,200 into an investment account for the purpose of buying new equipment four years from today. Today, they are adding another $7,000 to this account. They plan on making a final deposit of $9,200 to the account next year. How much will be available when they are ready to buy the equipment, assuming they earn a rate of return of 6 percent?

Answers

Answer:

The amount that will be available when they are ready to buy the equipment is $27,410.90.

Explanation:

This can be calculated as follows:

Future value = Present value * (100% + rate of return)^number of years the money is in deposit …….. (1)

Using equation (1), we have:

Future value of the amount deposited last year = $5,200 * (100% + 6%)^5 = $6,958.77

Future value of the amount deposited today = $7,000 * (100% + 6%)^4 = $8,837.34

Future value of the amount to be deposited next year = $9,200 * (100% + 6%)^4 = $11,614.79

Amount that will be available = Future value of the amount deposited last year + Future value of the amount deposited today + Future value of the amount to be deposited next year = $6,958.77 + $8,837.34 + $11,614.79 = $27,410.90

Identify two employment laws which might affect
easyJet plc's business activities.

Answers

Answer:

EasyJet Plc is the eighth largest airline in the world and the second biggest in Europe, . The business generated revenue per passenger of £58 compared with a cost per seat . The return on capital employed was just under 12% in 2017. regarding Brexit which might impact on both revenue and costs going forward.

Explanation:I dont have one  

explain how to use informal assessment to effectively prepare for an examination​

Answers

Answer:

we can practice by using informal assessment to effectively prepared for a exam in the following ways ,when writing a informal assessment we can see where we went wrong and how to correct it ,we ask for help with understanding the informal assessment so when it comes to the examination we know and understand and ace that paper with better results

Explanation:

Rodriguez Corporation issues 18,000 shares of its common stock for $174,800 cash on February 20. Prepare journal entries to record this event under each of the following separate situations. The stock has a $8 par value. The stock has neither par nor stated value. The stock has a $4 stated value.

Answers

Answer:

a.

Date              Account Title                                                   Debit           Credit

Feb. 20         Cash                                                            $174,800

                     Common stock                                                              $144,000

                     Paid-In Cap. in excess of par                                          $30,800

Working

Common stock = 18,000 * 8

= $144,000

Paid-in cap. = 174,800 - 144,000

= $30,800

b.

Date              Account Title                                                   Debit           Credit

Feb. 20         Cash                                                            $174,800

                     Common stock                                                              $174,800

c.

Date              Account Title                                                   Debit           Credit

Feb. 20         Cash                                                            $174,800

                     Common stock                                                               $72,000

                     Paid-In Cap. in excess of par                                       $102,000

Working

Common stock = 4 * 18,000 = $72,000

Paid in cap = 174,000 - 72,000 = $102,000

Mazie Supply Co. uses the percent of accounts receivable method. On December 31, it has outstanding accounts receivable of $76,000, and it estimates that 3% will be uncollectible. Prepare the year-end adjusting entry to record bad debts expense under the assumption that the Allowance for Doubtful Accounts has: (a) a $1,292 credit balance before the adjustment. (b) a $380 debit balance before the adjustment.

Answers

Answer:

(a) Dr Bad debts expense $988

Cr Allowance for doubtful accounts $988

(b) Dr Bad debts expense $2,660

Cr Allowance for doubtful accounts $2,660

Explanation:

Preparation of the year-end adjusting entry to record bad debts Expense

(a) Dr Bad debts expense $988

Cr Allowance for doubtful accounts $988

[(3%*$76,000)-$1,292]

(Being to record credit balance before the adjustment)

(b) Dr Bad debts expense $2,660

Cr Allowance for doubtful accounts $2,660

[(3%*$76,000)+$380]

(Being to record debit balance before the adjustment)

Learning involves changes in an individual's behavior resulting from previous experiences and information.
t or f

Answers

I believe it’s false here’s a link to see it https://quizlet.com/216989329/chapter-13-marketing-helping-buyers-buy-flash-cards/

It is a true statement that Learning involves changes in an individual's behavior resulting from previous experiences and information.

What is a Learning?

It refers to when we acquire knowledge or skills through personal study, experience, lesson, lecture etc

Hence, this process creates changes in an individual's behavior resulting from previous experiences and information as they tends to manifest in the learners action.

Therefore, it is a true statement

Read more about Learning

brainly.com/question/24959987

The joint processing costs in this operation: should be ignored in determining whether to sell at split-off or process further. should be allocated to products to determine whether they are sold at split-off or processed further. should be ignored in making all product decisions. are never included in product cost, as they are misleading to all management decisions.

Answers

Answer:

Should be ignored in determining whether to sell at split-off or process further

Explanation:

In the given situation, the joint processing cost should be ignored while calculating it for sell at the split off point or process further because we can see whether it would provide the additional advantage or it should not be split off or it should be further processed

Therefore the first option is correct

Lucy is trying to sell her CyberPowerPC Gamer Xtreme MSAAG1000 Gaming PC; however, none of the potential buyers is willing to pay the price Lucy desires. Lucy's friend Zeynep, an economist, thinks this might be due to a lack of information on the part of buyers. Zeynep uses the concept of __________ to explain to Lucy why she cannot sell her computer at the price she is asking

Answers

Answer: Adverse selection

Explanation:

From the above, we can deduce that Zeynep uses the concept of adverse selection to explain to Lucy why she cannot sell her computer at the price she is asking.

Adverse selection simply refers to a situation whereby there is information failure or asymmetric information. In this situation, the seller have more information than the information that the buyers about the product and this led to the situation whereby none of the potential buyers was willing to buy the product.

Knowledge Check 01 Messing Company has an agreement with a third-party credit card company, which calls for cash to be received immediately upon deposit of customers' credit card sales receipts. The credit card company receives 3.5 percent of card sales as its fee. Messing has $4,000 in credit card sales on January 1. Prepare the January 1 journal entry for Messing Company by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns.

Answers

Answer:

Messing Company

Journal Entry:

January 1:

Debit Cash $3,860

Debit Credit Card Expense $140

Credit Sales Revenue $4,000

To record the cash receipt and card expense for the card sales.

Explanation:

a) Data and Calculations:

Credit card commission = 3.5% of card sales

Credit card sales on January 1 = $4,000

Credit card fees = $140 ($4,000 * 3.5%) Cash received $3,860

Cash $3,860 Credit Card Expense $140 Sales Revenue $4,000

Short Answer: A marketing specialist needed to find a new way of marketing the company's main product to its potential clients. While watching a movie one evening, the marketing specialist saw a scene that gave her some novel thoughts for a new marketing plan. According to the creative process model, which is the stage in the creative process, which is the stage before this, and which is the stage after this

Answers

Answer: The stage in the creative process is the evaluation stage.

The stage before this is the Illumination stage.

The stage after this is the verification stage.

Explanation:

The creative process is simply about how ideas evolve to its final stage through through the way we think and our actions. For one to do this, the individual must possess problem-solving skills and be able to think critically. The stages involved are:

1. Preparation

2. Incubation

3. Illumination

4. Evaluation

5. Verification.

Based on the question, the marketing specialist is in the evaluation stage.

The stage before this is the Illumination stage and the stage after this is the verification stage.

In the illumination stage, new connections are being formed and the individual gets answer to his or her creative quest.

The verification stage is the final stage and this is when the creative process becomes a reality and the idea is then shared.

A Rhode Island company produces communion wafers for churches around the country and the world. The little company produces a lot of wafers, several hundred million per year. When in production, the process produces wafers at the rate of 112 per second. During this production process, the wafers must spend 12 minutes passing through a cooling tube.

Required:
How many wafers does the cooling tube hold on average when in production?

Answers

Answer:

80,640 wafers

Explanation:

Calculation to determine How many wafers does the cooling tube hold on average when in production

Using this formula

I = R x T

Where,

R = 112 wafers per second x 60

R = 6720 wafers per minute

T = 12 minutes

Let compute for I using the formula aboi

I = 6720 x 12

I = 80,640 wafers

Therefore How many wafers does the cooling tube hold on average when in production are 80,640 wafers

Free contract is the _____.

Answers

Answer + Explaining:
In economics, free contract is the concept that people may decide what agreements they want to enter into. A contract may be described as free when it is free from force or fraud.

Case A.
Kapono Farms exchanged an old tractor for a newer model. The old tractor had a book value of $16,500 (original cost of $37,000 less accumulated depreciation of $20,500) and a fair value of $9,900. Kapono paid $29,000 cash to complete the exchange. The exchange has commercial substance.

Case B.
Kapono Farms exchanged 100 acres of farmland for similar land. The farmland given had a book value of $545,000 and a fair value of $790,000. Kapono paid $59,000 cash to complete the exchange. The exchange has commercial substance.

Required:
a. What is the amount of gain or loss that Kapono would recognize on the exchange? What is the initial value of the new tractor?
b. Assume the fair value of the old tractor is $23,000 instead of $9,900. What is the amount of gain or loss that Kapono would recognize on the exchange? What is the initial value of the new tractor?
c. What is the amount of gain or loss that Kapono would recognize on the exchange? What is the initial value of the new land?
d. Assume the fair value of the farmland given is $436,000 instead of $790,000. What is the amount of gain or loss that Kapono would recognize on the exchange? What is the initial value of the new land?
e. Assume that the exchange lacked commercial substance. What is the amount of gain or loss that Kapono would recognize on the exchange? What is the initial value of the new land?

Answers

Answer:

Kapono Farms

Case A:

a. The loss that Kapono would recognize on the exchange is:

= $6,600.

The initial value of the new tractor is:

= $38,900.

b. The gain that Kapono would recognize on the exchange is:

= $6,500.

The initial value of the new tractor, if cash payment of $29,000 was made, would be:

= $52,000.

Case B:

c. The amount of gain that Kapono would recognize on the exchange is:

= $245,000.

The initial value of the new land is:

= $790,000.

d. The amount of the loss that Kapono would recognize on the exchange of land is:

= $109,000.

The initial value of the new land is $495,000, if payment of $59,000 is made.

e. If the exchange lacked commercial substance, there is no gain or loss.

The initial value of the new land would be the book value of the old farmland, which is:

= $545,000.

Explanation:

a) Data and Calculations:

Book value of old tractor = $16,500     $16,500

Fair value of old tractor =       9,900      23,000

Loss from the exchange =   $6,600       -6,500

Value of new tractor

Fair value of old tractor =     $9,900   $23,000

Cash payment to complete 29,000     29,000

Value of new tractor          $38,900   $52,000

Case B:

Book value of farmland = $545,000   $545,000

Fair value of farmland =      790,000     436,000

Gain from exchange =      $245,000   $109,000

Value of New Farmland:

Fair value of old farmland $790,000  $436,000

Cash payment to complete   59,000      59,000

Value of new farmland =   $849,000  $495,000

ou invest $1,000 in stocks. Would a macroeconomist call this an investment? Why or why not? An economist would say no, because you are just buying an existing asset without creating any new productive capacity in the economy. yes, because you are purchasing something that may yield more value later. yes, because there is a concensus amongst Wall St. that this is considered an investment. no, because the minimum threshold for a stock purchase to be considered an investment is $10,000.

Answers

Answer:

An investment of $1,000 in stocks:

yes, because you are purchasing something that may yield more value later.

Explanation:

While Macroeconomics tries to explain aggregate phenomena such as economic growth, business cycles, unemployment, inflation, etc., this does not preclude this branch of economics from agreeing with a fact.  An investment remains an asset which the investor purchases in order to generate more future income.

The Brital Company processes unprocessed milk to produce two products, Butter Cream and Condensed Milk. The following information was collected for the month of June:Direct Materials processed:33,000 gallonsThe costs of purchasing the of unprocessed milk and processing it up to the split-off point to yield a total of 33,000 gallons of saleable product was $55,000.Production Butter cream 13000 gallons condensed milk 20000 gallonsSales Butter cream 12500 gallons condensed milk 19500 gallonsSales Butter cream 2.50 $ per gallon condensed milk $ 9.00 per gallonsSeparable costin Butter cream 14500 gallons condensed milk 36000 gallonsThe company uses constant gross-margin percentage NRV method to allocate the joint costs of production. Which of the following statements is true of Brital?A) The gross profit percent of condensed milk is lower than the gross profit of butter cream.B) The gross margin is same for both products because constant gross margin percentage NRV method ignores profits earned before the split-off point.C) The gross profit of condensed milk is lower than the gross profit of butter cream.D) The gross margin is allocated to the joint products in order to determine the joint-cost allocations.

Answers

Answer:

The Brital Company

A) The gross profit percent of condensed milk is lower than the gross profit of butter cream.

Explanation:

a) Data and Calculations:

Direct Materials processed = 33,000 gallons

Joint cost for 33,000 gallons of saleable product = $55,000

                            Butter Cream                     Condensed Milk      Total

Production        13,000 gallons                       20,000 gallons        33,000

Sales                 12,500 gallons                        19,500 gallons       32,000

Sales                  $2.50 per gallon                    $ 9.00 per gallons

Separable cost 14,500 gallons                       36,000 gallons       50,500

Sales revenue   $31,250 ($2.50*12,500)     $175,500             $206,750

Sales revenue

based on separable

cost                  $36,250                                   $324,000       $360,250

Joint cost allocation $5,534                            $49,572             $55,106

                      ($0.153*$36,250)                   ($0.153*$324,000)

Gross profit         $25,716                               $125,928

Gross profit %       80.6%                                    71.8%

Which of these statements is true?
O Simple interest percentages must be lower than compound interest percentages
O Compound interest will lead to a larger sum of money than a comparable simple interest payment
O Simple interest payments equal compound interest payments if invested over 10 years
all of these

Answers

Answer:

Compound interest will lead to a larger sum of money than a comparable simple interest payment.

Explanation:

The true statement is that compound interest will lead to a larger sum of money than a comparable simple interest payment because the interest are compounded for a certain number of times such as daily, weekly, quarterly or annually while simple interest isn't compounded at all.

To find the future value, we use the compound interest formula;

[tex] A = P(1 + \frac{r}{n})^{nt}[/tex]

Where;

A is the future value.

P is the principal or starting amount.

r is annual interest rate.

n is the number of times the interest is compounded in a year.

t is the number of years for the compound interest.

Mathematically, simple interest is calculated using this formula;

[tex] S.I = \frac {PRT}{100} [/tex]

Where;

S.I is simple interest.

P is the principal.

R is the interest rate.

T is the time.

Fundamental analysis is likely to yield best results for _______. Group of answer choices stocks with very few analysts following NYSE stocks stocks with many analysts following stocks that are frequently in the news stocks of firms that have recently announced earnings

Answers

Answer:

stocks with very few analysts following

Explanation:

Fundamental analysis is chosen to yield for the best result for those stocks that are followed by a very less analyst also it would be helpful for maximizing the rate of return by seeing the stock undervaluation in the case when there is a difference in the price and that cannot be seen so this represent that these stocks would have the maximum rate of return

hence, the first option is correct

Which of the following statements is CORRECT?

a. A portfolio with a large number of randomly selected stocks would have more market risk than a single stock that has a beta of 0.5, assuming that the stock's beta was correctly calculated and is stable.
b. If a stock has a negative beta, its expected return must be negative.
c. If the returns on two stocks are perfectly positively correlated (i.e., the correlation coefficient is 1.0) and these stocks have identical standard deviations, an equally weighted portfolio of the two stocks will have a standard deviation that is less than that of the individual stocks.
d. According to the CAPM, stocks with higher standard deviations of returns must also have higher expected returns.
e. A portfolio with a large number of randomly selected stocks would have less market risk than a single stock that has a beta of 0.5.

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Answer:

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