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 a. Portfolio expected return is

= weight in big toys *return on big toys + weight in chemical industries*return on chemical industries

=0.62*0.10 + 0.38*0.12

=0.062 + 0.0456

=10.76%

portfolio standard deviation :

= root over of [ (w1)^2* variance of big toys + (w2)^2*variance of chemical industries + 2 *W1*W2*CORRELATION BETWEEN BIG TOYS AND CHEMICAL INDUSTRIES*standard deviation of big toys*standard deviation of chemical industries]

=(0.62)^2*(0.218)^2 + (0.38)^2* (0.277)^2 + 2 * 62*0.38*0.31*0.218*0.277

=0.0183+ 0.0111 + 0.0088

=19.55%

b. Portfolio expected return will be the same = 10.76%

The standard deviation will be :

root over of [(0.62)^2*(0.218)^2 + (0.38)^2*(0.277)^2 + 2 *0.62*0.38*0.81*0.218*0.277]

=0.0183 + 0.0111 + 0.0230

=22.9%

c. the lower the correlation, between the assets the higher will be the benefits and lower will be the standard deviation.

The difference is due to the, the higher correlation, which resulted in a higher standard deviation,

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QUESTION 6 (a) The bar shown in Figure Q2(a) is subjected to tensile load of 150 Kn. If the stress in the middle portions is limited to 160 N/mm², determine the diameter of the middle portion. Find also the length of the middle portion if the total elongation of the bar is to be 0.25 mm. E E = 2.0 + 105N/mm². (12 marks) 150 KN 10 cm DIA 10 cm DIA 150 KN 45 cm Figure Q6(a) (b) A brass bar, having cross-section area of 900 mm², is subjected to axial forces as shown in Figure Q2(b), in which AB = 0.6 m, BC = 0.8 m, and CD = 1.0 m. Find the total elongation of the bar. E = 1.0 + 105N/mm2 . (8 marks) Page 4 of 5 B D 40 KN 70 KN 20 KN 10 KN Figure Q6(b) (TOTAL = 20 MARKS)

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  Question: Show transcribed image text Answer:
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  Introduction To find incremental revenue and cost, we subtract Current revenue and cost from Projected revenue and cost. Answer Current Situation Projected Sales and Profit Incremental Revenues and Costs Total Revenue Php1,500,000 Php1,800,000 + Php3000,000 Variable Cost 575,000 425,000 - Php 332,000 Direct Fixed Costs 625,000 700,000 + Php 75,000 Indirect Fixed Costs 100,000 100,000 No change Profit Php 200,000 Php 575,000 + Php 375,000 Profit increases by Php 375,000, thus a new camera and coffee maker must be purchased.

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