Use the Information for the Question(s)below

question 62

Multiple Choice

Use the information for the question(s) below.
Suppose you invest $20 000 by purchasing 400 shares of BHP Billiton (BHP) at $13 per share, 500 shares of ANZ Bank (ANZ) at $20 per share, and 200 shares of Flight Centre (FLT) at $24 per share.
-Suppose over the next year BHP has a return of 12.5%, ANZ has a return of 20%, and FLT has a return of -10%. The return on your portfolio over the year is:

• A)0%.
• B)7.52%.
• C)15.51%.
• D)10.85%.

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Definitions:

Year 2

Typically refers to the second year of a company's operations or performance being analyzed.

Variable Costing

An accounting method in which variable costs are charged to cost units and fixed costs are treated as period costs and directly charged to the profit and loss account.

Operating Income

The profit realized from a business's core operations, excluding deductions of interest and tax.

Variable Costing

A method of accounting that encompasses just the variable costs associated with manufacturing—such as direct materials, direct labor, and variable manufacturing overhead—as part of the product costs.