Please Show Work/ Calculations
Question #10 Profile of the Economy, Risk & EOQ Answer each of the ten (10) True or False questions below (1 point each) A. In 2018, the gross domestic product grew over 5.0% in the first quarter B. 3-month T-Bill returns have trended up since 2012 and stands at ~2.0% (as of Aug 18) C. Real personal consumption accounts for 70% of US gross domestic product D. The unemployment rate has trended down over the last several years E. Inflation increased to 3.8% in recent months, primarily due to increasing fuel costs F. Return variance is the only form of risk an investor needs to be concerned about when T or F T or F or T or F T or F T or F assembling a portfolico G. Systematic risk can be eliminated through diversification H. Portfolio variance will never be greater than the stock with greatest variance I. Combining stocks with different phases of seasonal variance reduces portfolio variance . As the number of non-correlated stocks increase in a portfolio, overall variance will likely decrease T or F T or F T or F T or F (2) Extra Credit: Calculate the Economic Order Quantity (EOQ) for the following scenario Procurement Process Cost: $1,000 Daily Demand: 48 units Inventory Holding Cost: $35/year Question #10 Profile of the Economy, Risk & EOQ Answer each of the ten (10) True or False questions below (1 point each) A. In 2018, the gross domestic product grew over 5.0% in the first quarter B. 3-month T-Bill returns have trended up since 2012 and stands at ~2.0% (as of Aug 18) C. Real personal consumption accounts for 70% of US gross domestic product D. The unemployment rate has trended down over the last several years E. Inflation increased to 3.8% in recent months, primarily due to increasing fuel costs F. Return variance is the only form of risk an investor needs to be concerned about when T or F T or F or T or F T or F T or F assembling a portfolico G. Systematic risk can be eliminated through diversification H. Portfolio variance will never be greater than the stock with greatest variance I. Combining stocks with different phases of seasonal variance reduces portfolio variance . As the number of non-correlated stocks increase in a portfolio, overall variance will likely decrease T or F T or F T or F T or F (2) Extra Credit: Calculate the Economic Order Quantity (EOQ) for the following scenario Procurement Process Cost: $1,000 Daily Demand: 48 units Inventory Holding Cost: $35/year