Question:
Tyson Foods is the largest U.S. beef and chicken supplier, processing more than 100,000 head of cattle and 40-plus million chickens weekly. Their primary distribution channels are supermarket meat departments. However, the company is now expanding distribution into convenience stores. There are almost 150,000 gas stations and convenience stores where the company would like to sell hot Buffalo chicken bites near the checkout. This is a promising channel, as sales are growing considerably at these retail outlets and pro´t margins on prepared foods are higher than selling raw meat to grocery stores. Tyson will have to hire 10 more sales representatives at a salary of $45,000 each to expand into this distribution channel because many of these types of stores are independently owned. Each convenience store is expected to generate an average of $50,000 in revenue for Tyson. Refer to Appendix 2: Marketing by the Numbers to answer the following questions.
1.If Tyson’s contribution margin is 30 percent on this product, what increase in sales will it need to break even on the increase in fixed costs to hire the new sales reps?
2.How many new retail accounts must the company acquire to break even on this tactic?
3. What average number of accounts must each new rep acquire?
Answer:
Tyson Foods
1. When the company breaks even the margin resulting from the increase in sales = salary of sales reps 0.30x = 10 * $45000 x= $150,0000.
Therefore, the increase in sales = $150,0000
2. The number of retail accounts
= Increase in sales/ revenue from one store
= 150,0000/50000
= 30 retail stores.
3. There are 10 reps, therefore the average number of accounts for each sales rep
= 30/10
= 3 accounts.
Explanation:
Breakeven in sales dollars and units are achieved when the total cost = the total revenue. At this point, there is no loss and no profit. When the company achieves more sales above the break-even point, it makes a profit. If it does not reach the point, it incurs some loss.
The following balances are from the accounts of Crabtree Machining Company: January 1 (Beginning) December 31 (Ending) Direct materials inventory $ 115,200 $ 141,600 Work-in-process inventory 139,200 134,400 Finished goods inventory 117,120 108,000 Direct materials purchased during the year amount to $717,600, and the cost of goods sold for the year was $2,606,880. Required: Prepare a cost of goods sold statement.
Answer and Explanation:
The preparation of the cost of goods sold statement is presented below;
Crabtree Machining Company
Cost of goods sold statement
Beginning work in Process $139,200
Manufacturing Costs
Direct Material:
Beginning Direct Material inventory $115,200
Direct material purchases $717,600
Materials available $832,800
Less: Ending Direct Material inventory - $141,600
Direct Material used $691,200
Conversion costs ($2,592,960 -$691,200) $1,901,760 (Balancing figure)
Total Manufacturing costs ($2,732,160 - $139,200) $2,592,960
Total cost of Work in process ($2,597,760 + $134,400) $2,732,160
Less: ending inventory Work in Process $134,400
Cost of goods manufactured ($2,714,880 -,$117,120) $2,597,760.
Beginning finished goods inventory $117,120
Finished goods savailable for sale ($2,606,880 + $108,000) $2,714,880
Less: Ending finished goods inventory $108,000
Cost of goods sold $2,606,880
A single firm provides the entire market supply. What type of market structure does this firm likely operate in
Answer:
Monopoly.
Explanation:
A monopoly is a market structure which is typically characterized by a single-seller who sells a unique product in the market by dominance. Thus, it is a market structure wherein the seller has no competitor because he is solely responsible for the sale of unique products without close substitutes. Any individual that deals with the sales of unique products in a monopolistic market is generally referred to as a monopolist.
For example, a public power company that serves as the only power utility provider to the general public.
Hence, if a single firm provides the entire market supply. Then type of market structure does this firm likely operate in is monopoly.
Suppose that, as part of an international trade agreement, the U.S. government reduces the tariff on imported coffee. Will this affect the supply or the demand for coffee? Why? Which determinant of demand or supply is being affected? Show graphically with before- and after-curves on the same axes. How will this change the equilibrium price and quantity of coffee? Explain your reasoning.
Answer:
The explanation of that same issue is described throughout the explanation section below.
Explanation:
A tariff reduction might well transition the quantity supplied of coffee just to something like the right because many coffees could then be started to sell with such relatively low taxes collected by the government. This same supply curve was influenced by the political regulation factor. Very few import taxes encourage consumers to sell further throughout the US. This same market value of the balance will indeed descend as well as the total amount will indeed increase.With today's cell phone, you can watch the news, shoot videos, take pictures, listen to music, and so much more. Because of these features, consumers may want to replace their existing phone with a new model or brand. This increase in demand is in part due to changes in
Answer:
Technology.
Explanation:
A product can be defined as any physical object or material that typically satisfy and meets the demands, needs or wants of customers. Some examples of a product are mobile phones, television, microphone, microwave oven, bread, pencil, freezer, beverages, soft drinks etc.
With today's cell phone, you can watch the news, shoot videos, take pictures, listen to music, and so much more. Because of these features, consumers may want to replace their existing phone with a new model or brand. This increase in demand is in part due to changes in technology which is considered to be an environmental factor.
Hence, technology plays a significant role in improving the quality of goods and services that are made available to end users so as to meet their needs or requirements.
For example, as a result of technological advancement, a user can sit in the comfort of his or her homes place an order for a particular product and have it delivered to him or her at home.
How does earned income, like wages, differ from unearned income, like interest or rental
income? How would you pay taxes on these different types of income?
Answer:
Your tax liability is based on your overall income, so it's important to understand the different types of income and how the IRS treats them. Earned income and unearned income each include diverse forms of payments and have unique tax implications.
Explanation: Hope this helps <3
How do you determine opportunity cost
Answer:
See below
Explanation:
Opportunity cost is described as the foregone benefit by preferring one option over others. Opportunity cost arises when a choice is being made from several possible alternatives. When the preferred option is selected, the benefits from the other alternatives are forfeited.
Opportunity cost is determined by evaluating the forfeited benefits. The benefits from the next best alternative are the opportunity costs. In other others words, the foregone advantages of the option ranked second is the opportunity cost.
Susmel Inc. is considering a project that has the following cash flow data. What is the project's payback? Year 0 1 2 3 Cash flows -$475 $150 $200 $300 a. 2.88 years b. 2.85 years c. 2.42 years d. 1.96 years e. 2.47 years
Answer:
c. 2.42 years
Explanation:
The computation of the payback period is shown below:
Year Cash flow Cumulative cash flow
0 -$475 -$475
1 $150 -$325
2 $200 -$125
3 $300 $175
Now the payback period is
= 2 years + $125 ÷ $300
= 2.42 years
which of the following is a distinguishing feature of the declining balance method of calculating depreciation
its the declining balance method is to accelerate depreciation..the big depreciation expenses during the earlier
A corporation retired $670,000 face value of bonds, which have an unamortized discount of $27,000, by repurchasing them for $670,000. How much was the gain or loss on the retirement of the bonds
Answer:
$27,000 loss
Explanation:
gain/loss on retirement of bonds = carrying value - retirement cost
carrying value = $670,000 - $27,000 = $643,000retirement cost = $670,000gain/loss on retirement of bonds = $643,000 - $670,000 = -$27,000
Dr Bonds payable 670,000
Dr Loss on retirement of bonds 27,000
Cr Cash 670,000
Cr Discount on bonds payable 27,000
write down the process going for foregin employment in Nepal
Answer:
The reasons behind the migration are almost same in Nepal as other parts of the world. Existing poverty, limited employment opportunities, deteriorating agricultural productivity, armed 8 Page 9 conflict are some of the reasons about the motives behind international labour migration.
Explanation:
Can someone help me what is the answer
Answer:
a). $413,000
b). $485,000
Explanation:
As the December 31, 20y8, Assets of $543,000 and liabilities of $130,000.
Using accounting equation
a). owner's equity as of December 31, 20y8
The accounting equation is as follows.
Asset = Equity + Liabilities
$543,000 = Equity + $130,000
Equity = $543,000 - $130,000
Equity =$413,000
b). Owner's equity as DEC 31,20y9 assuming that assets increased by $103,000 and liabilities increased by $31,000 during 20y9
If assets increase by $103,000, assets will be $103,000 + $543,000
=$646,000
Liabilities increased by $31,000, new liabilities
=$130,000 + $31,000
=$161,000
$646,000 = equity + $161,000
Equity = $646,000 -$161,000
Equity = $485,000
Kuhn Co. is considering a new project that will require an initial investment of $20 million. It has a target capital structure of 58% debt, 6% preferred stock, and 36% common equity. Kuhn has noncallable bonds outstanding that mature in 15 years with a face value of $1,000, an annual coupon rate of 11%, and a market price of $1555.38. The yield on the company’s current bonds is a good approximation of the yield on any new bonds that it issues. The company can sell shares of preferred stock that pay an annual dividend of $8 at a price of $95.70 per share. Kuhn does not have any retained earnings available to finance this project, so the firm will have to issue new common stock to help fund it. Its common stock is currently selling for $33.35 per share, and it is expected to pay a dividend of $2.78 at the end of next year. Flotation costs will represent 8% of the funds raised by issuing new common stock. The company is projected to grow at a constant rate of 9.2%, and they face a tax rate of 25%. What will be the WACC for this project? (Note: Round your intermediate calculations to two decimal places.)
Answer:
8?14%
Explanation:
Calculation for What will be the WACC for this project
First step is to calculate the Yield using financial calculator
N=15 years
FV=1,000
PV=-$1555.38
PMT=11%
CPT I/Y=5.48%%
Second step is to calculate After-tax cost of debt using this formula
After-tax cost of debt=Yield*(1-tax rate)
Let plug in the formula
After-tax cost of debt=5.48%*(1-25%)
After-tax cost of debt=5.48%*75%
After-tax cost of debt=4.11%
Third step is to calculate Cost of preferred stock using this formula
Cost of preferred stock=Dividend/Price
Let plug in the formula
Cost of preferred stock=8/92.25
Cost of preferred stock=8.67%
Fourth step is to Cost of common stock using this formula
Cost of common stock=Expected Dividend/(Price*(1-Flotation cost %))+Growth rate
Let plug in the formula
Cost of common stock=2.78/(33.35*(1-8%))+5.48%
Cost of common stock=2.78/(33.35*0.92)+5.48%
Cost of common stock=(2.78/30.68)+5.48%
Cost of common stock=9.06%+5.48%
Cost of common stock=14.54%
Now let calculate WACC
WACC=58%*4.11%+6%*8.67%+36%*14.54%
WACC=8.14%
Therefore What will be the WACC for this project is 8.14%
Larry Gomez is a warehouse manager for a company that markets electric generators. In this small entrepreneurial firm, there are direct lines of communication and authority flowing from the company's CEO down to Gomez and through her to the workers in the warehouse. Gomez works in a _____ organization.
Answer:
Line.
Explanation:
A line organizational structure can be defined as a type of structure in which the level of authority ranks from the top to the bottom i.e from the top executives to the lowest level employees. A line organizational structure makes use of downward communication technique for the dissemination of informations.
A downward communication can be defined as the formal flow of information and messages within an organizational hierarchy; which is mainly from a higher level (senior management) of an organization to a lower level (middle management) and lastly, to the least (subordinates).
In this scenario, Larry Gomez is a warehouse manager for a company that markets electric generators. In this small entrepreneurial firm, there are direct lines of communication and authority flowing from the company's CEO down to Gomez and through her to the workers in the warehouse. Therefore, Gomez works in a line organization.
Calculate the net operating cash flow for years 1 and 2 and determine the amount of receivables from clients that the firm would show in its year 1 and year 2 balance sheets prepared according to the accrual accounting model. 2. Prepare an income statement for each year according to the accrual accounting model.
Question Completion:
Listed below are several transactions that took place during the first two years of operations for the law firm of Pete, Pete, and Roy.
Year 1 Year 2
Amounts billed to clients for services rendered $184,000 $234,000
Cash collected from clients 153,000 183,000
Cash disbursements:
Salaries paid to employees during the year 83,000 93,000
Utilities 26,500 33,000
Purchase of insurance policy 57,900 0
In addition, you learn that the company incurred Utility costs of $31,500 in year 1, that there were no liabilities at the end of year 2, no anticipated bad debts on receivables, and that the Insurance policy covers a three-year period.
Answer:
1. Net operating cash flow for
Year 1 Year 2
Cash collected from clients 153,000 183,000
Cash disbursements:
Salaries paid to employees during the year (83,000) (93,000)
Utilities (26,500) (33,000)
Purchase of insurance policy (57,900) 0
Net operating cash flow ($14,400) $57,000
1b. Amount of receivables from clients that the firm would show in its year 1 and year 2 balance sheets:
Year 1 = $31,000
Year 2 = $82,000
2. Income Statement for the years ended December 31, Year 1 and Year 2:
Year 1 Year 2
Service Revenue $184,000 $234,000
Expenses:
Salaries 83,000 93,000
Utilities 31,500 28,000
Insurance expense 19,300 19,300
Total expenses 133,800 140,300
Net income before tax $50,200 $93,700
Explanation:
Calculations:
Accounts Receivables:
Year 1
Bill to clients $184,000
Cash collected 153,000
Balance $31,000
Year 2
Balance $31,000
Bill to clients $234,000
Cash collected 183,000
Balance $82,000
Insurance Expenses for each year = $57,900/3 = $19,300
Utilities Incurred:
Year 1 = $31,500
Paid 26,500
Payable 5,000
Year 2
Paid 33,000
less Yr, 1 5,000
Incurred $28,000
Over several decades, some industries, such as textile and clothing, which were once a significant part of the U.S. economy, have shifted manufacturing abroad. Using the idea of opportunity cost, provide an explanation of the reasoning behind this shift. How has this shift affected economic well-being locally
Answer:
Opportunity costs are the benefits lost or extra costs associated to choosing one activity or investment over another alternative.
In this case, the textile and clothing industry was replaced by more modern industries or services that require less labor, probably less capital and less natural resources. This means that the opportunity cost of producing clothes was too high when it meant that it had to replace other more profitable industries.
On the other hand, the opportunity cost of the clothing industry abroad is very low since labor is very cheap compared to the US, so some foreign countries have a comparative advantage.
When you are allocating resources efficiently, you will allocate them to activities that yield the highest returns and reject those that yield low returns. This improves the well being of the companies and the population as a whole.
Explanation:
Costco wants to know how to stock their warehouses for a future pandemic and are using current sales data to help them project the needs. Which kind of analytical technique are they using
Answer:
Predictive analytics.
Explanation:
Predictive analytics can be defined as a statistical approach which typically involves the use of past and present data ( factual informations) in order to determine unknown events or future performances of a business firm or organization. It is focused on determining what is likely to happen in the future.
In this scenario, Costco wants to know how to stock their warehouses for a future pandemic and are using current sales data to help them project the needs.
Hence, the kind of analytical technique Costco are using is predictive analytics.
Equipment that cost $871000 and had a book value of $387000 was sold for $457000. Data from the comparative balance sheets are: 12/31/21 12/31/20 Equipment $5410000 $4879000 Accumulated Depreciation 1654000 1500000 Equipment purchased during 2021 was $1402000. $531000. $911000. $821000.
Answer:
a. $1,402,000
Explanation:
Equipment purchased during 2021 = Cost of equipment on 12/31/2021 - (Cost of equipment on 12/31/2020 - Cost of equipment sold)
Equipment purchased during 2021 = $5,410,000 - ($4,879,000 - $871,000)
Equipment purchased during 2021 = $5,410,000 - $4,008,000
Equipment purchased during 2021 = $1,402,000
Jim usually goes to the movies with friends on Friday nights at the local movie theater. This week, the movie theater held over the movie, Anchorman 2, which Jim saw last week. Jim and his buddies decide to go bowling rather than attend the movie a second time. Which of the following best describes why Jim decided to go bowling this weekend?
a. Jim's utility function
b. Diminishing marginal returns
c. Profit maximization
d. Consumer budget constraint
Answer:
b. Diminishing marginal returns
Explanation:
According to the law of diminishing returns, as more units of a variable input is added to a fixed income of production, output might increase at a point but after some time total output would increase at a decreasing rate and marginal product would be decreasing.
Due to the fact that Jim has seen the movie once, he would not derive the same level of satisfaction from watching the movie a second time. The utility he would receive from watching the movie a second time would be less than when he watched it a first time.
Bonita Corporation has outstanding 9,100 shares of $100 par value, 6% preferred stock and 60,500 shares of $10 par value common stock. The preferred stock was issued in January 2020, and no dividends were declared in 2020 or 2021. In 2022, Bonita declares a cash dividend of $270,000. (a) Assume that the preferred are noncumulative. How much dividend will the preferred stockholders receive
Answer:
Bonita Corporation
Assuming that the preferred are noncumulative, the dividend that the preferred stockholders will receive is:
= $54,600.
Explanation:
a) Data and Calculations:
Outstanding 6% preferred stock = 9,100 shares
Par value of preferred stock = $100 per share
Value of preferred stock = $910,000
Fixed annual dividend when declared = $54,600 ($910,000 * 6%)
Common stock = 60,500 shares
Par value of common stock = $10 per share
Value of common stock = $605,000
Dividends declared in 2022 = $270,000
Since the preferred stock are non-cumulative, the dividend that the preferred stockholders will receive in 2022 = $54,600
The remaining $215,400 will be allocated to common stockholders at $3.56 per share ($215,400/60,500).
g Use the company's financial information below to help answer this question: Sales 5000 Operating Income 1000 Net Income 500 Dividends Paid 200 Total Assets Turnover 2.0 Leverage Ratio 2.0 The company's sustainable long term growth rate is closest to: HINT: gLT
Answer:
24%
Explanation:
Missing word "Profit margin 10%"
Profit = Sales * Profit margin = $5000*10% = $500
Dividend payout ratio = Dividend paid / Profit = $200 / $500 = 0.4
Retention ratio = 1 - Dividend payout ratio = 1 - 0.4 = 0.6
Return on Equity (As per DuPont equation) = Net profit margin * Asset turnover ratio * Financial leverage = 10% * 2.0 * 2.0 = 0.4 = 40%
Sustainable growth rate = Retention ratio x Return on equity = 0.60 * 40% = 0.24 = 24%
Marco, a real estate agent, receives a dozen emails in his inbox. Six of the emails are inquiries to a new condo listing he has in the North End. He confirms appointments with three of the prospective buyers, one of them decides that the condo won't work after receiving information on the layout of the property and the other email Marco ignores because the email address has a last name in it that appears to be Irish. Has Marco risked his real estate license
Answer:
Yes because Marco discriminated by ignoring the email due to its appearance of being linked to someone of a different national origin
Explanation:
Real estate agents are not allowed to discriminate against buyers of property. Of they do they can lose their Liscence.
Discrimination is the act of behaving differently
and withholding benefits from people based on their race, colour, religion, sex, or gender.
In this scenario Marco ignores communicating with one of his clients because the email address has a last name in it that appears to be Irish.
He did not consider the application at all resulting in the client losing the opportunity to obtain the new condo.
As a result of this discriminatory action Marco stands the risk of losing his liscence
Chuck, a single taxpayer, earns $76,800 in taxable income and $10,000 in interest from an investment in City of Heflin bonds. (Use the U.S. tax rate schedule.) Required: If Chuck earns an additional $40,260 of taxable income, what is his marginal tax rate on this income
Answer:
Answer:
a. 24%
b. 12%
Explanation:
Marginal tax rate is an incremental tax rate that is paid out of the taxable income of a tax payer. It represents the rate at which the last unit of dollar of the taxable income is taxed. The marginal rate for each income bracket is supplied by the Internal Revenue Service (IRS).
Chuck Marginal Tax Rate
a) The marginal tax rate for Chuck if he earns additional $40,000 taxable income will be:
= $75,000 + $40,000
= $115,000
Marginal tax rate for $115,000 is 24% according IRS tax rate schedule.
b) If instead, it is an additional deduction of $40,0000, the marginal tax rate will be:
= $75,000 - $40,000
= $35,000
The marginal tax rate for taxable income of $35,000 is 12% according US tax rate schedule.
Note: the interest is categorized as interest from municipal bond, so it is tax free.
It is also assumed that Chuck is single. Hence, tax rate under single filer applies to him.
Explanation:
Why is it important for individuals to correctly calculate their tax liability?
Answer:
So they won’t have to get robbed much
Explanation:
The first two steps of the accounting cycle are:
A. Journalize and Post
B. Journalize and Trial Balance
C. Post and Trial Balance
Answer:
A. Journalize and Post
Explanation:
In accounting Journalize refers to the act of recording the transactions that occurred in your operation to your financial record. Depending on the size of the business, journalizing process might be different. Small scale businesses can get by with written record while larger businesses usually need proper computerizations.
Posting is the second step after the journalizing process. More specifically, posting journal entries to the accounts in the ledger. This will show each accounts that the company possess along with the value of each accounts.
BBC Company hopes to buy new computers in two years and wishes to set aside money today for the purchase. BBC's Controller has developed the following estimates: Estimated Cash Outflows Probability Assessment $12,700 30% $13,300 50% $14,500 20% How much should BBC deposit today in an account earning 5% compounded annually, to have sufficient cash on hand to pay for the computers
Answer:
$12,117.91
Explanation:
The first task is to determine the cash flow amount that would be required in 2 years time by determining the expected value of estimated cash outflows which is the sum of the estimated cash flows multiplied by their respsective probabilities as shown thus:
expected value in 2 years=($12,700*30%)+($13,300*50%)+( $14,500*20%)
expected value in 2 years=$13,360.00
Using the present value formula below, we can calculate the amount to be invested today:
PV=FV/(1+r)^n
PV=the amount to be invested today=the unknown
FV=future value=FV=the amount of cash outflow required in 2 years=$13,360.00
r=rate of interest=5%
n=the length of time that the amount would invested=2 years
PV=$13,360.00/(1+5%)^2
PV=$12,117.91
Identify one way in which setting a goal can help a person budget
more effectively.
g Klein uses the perpetual inventory system and the gross method of accounting for sales. The journal entry or entries that Klein will make on March 12 is (are):
Answer:
Note: The complete question is attached as picture below
Date Account Titles and Explanation Debit Credit
12-Mar Accounts receivable $7,800
Sales $7,800
(To record the sales on account)
12-Mar Cost of goods sold $4,500
Inventory $4,500
(To record the cost of goods sold)
Various financial data for Year 1 and Year 2 follow. Calculate the total productivity measure and the partial productivity measures for labor, capital, and raw materials for this company for both years. What do these measures tell you about this company?
Last year This year
Output Sales $200,000 $220,000
Input Labor 30,000 40,000
Raw Materials 35,000 45,000
Energy 5,000 6,000
Capital 50,000 50,000
Other 2,000 3,000
Answer:
See below
Explanation:
With regards to the above, the formula for total productivity measure is
= Output Sales( Total output) / Total Input
Total productivity measurement for Last year.
Output sales = $200,000
Total input = Input labor + Raw materials + Energy + Capital + others
= $30,000 + $35,000 + $5,000 + $50,000 + $2,000
= $122,000
Therefore, total productivity measure
= $200,000/$122,000
= 1.64
Total productivity measurement for this year
Output sales= $220,000
Total input = Input labor + raw materials + energy + capital + others
= $40,000 + $45,000 + $6,000 + $50,000 + $3,000
= $144,000
Therefore, total productivity measure
= $220,000/$144,000
= 1.53
Partial productivity for last year
Output sales = $200,000
Input = Input labor + raw materials + capital
= $30,000 + $35,000 + $50,000
= $115,000
Partial productivity measure = $200,000/$115,000
= 1.74
Partial productivity measure for this year
Output sales = $220,000
Input = Input labor + raw materials + capital
= $40,000 + $45,000 + $50,000
= $135,000
Therefore, partial productivity measurement for last year
= $220,000/$135,000
= 1.63
The above measures indicates that there is a reduction in total productivity measures from last year to this year. Same applies to partial productivity measures for both years.
Piloting a questionnaire is a worthwhile exercise because it will:
a.Test out your questions on some of the people who will be in the final sample
b.Identify and amend any problems in the question wording, order and format
c.Find out what a trained pilot would think of the subject matter
d.All of the above
Answer:
b.Identify and amend any problems in the question wording, order and format
Explanation:
PILOTING a QUESTIONNAIRE will help to Effectively identify any problems that has to do with the questionnaire and as well as providing solution on how to combat such problem which is why PILOTING a QUESTIONNAIRE is very important because it will enables us to know those question that are faulty due to some reasons such as incorrect question wording due to the fact that it is important for respondents as well as the interviewers to Effectively understand the question in the questionnaire will inturn help them to answer those questions accurately as well as lack of Proper format in the questions thereby amending or resolving those problems.
1) Which of the following statements is false? A) The variance increases with the magnitude of the deviations from the mean. B) The variance is the expected square deviation from the mean. C) Two common measures of the risk of a probability distribution are its variance and its standard deviation. D) If the return is risk-free and never deviates from its mean, the variance is one.
Answer:
D) If the return is risk-free and never deviates from its mean, the variance is one.
Explanation:
In the given case, the following statements are true:
a. In the case when the variance increased so the deviation magnitude from the mean is also increased
2. The variance is the predicted square deviation from the mean
3. And, the two common measures of the risk is the variance and the standard deviation
But when the return is risk less so the variance should be zero not one
Therefore the option d is false
