Problem $5-12($Algo$)$

Assume that you manage a risky portfolio with an expected rate of return of $13\%$ and a standard deviation of $37\%.$ The T$-$bill rate is $4\%.$

Your client chooses to invest $75\%$ of a portfolio in your fund and $25\%$ in a T$-$bill money market fund.

Required:

a$.$ What are the expected return and standard deviation of your client's portfolio? $($Round your answers to $1$ decimal place.$)$

b$.$ Suppose your risky portfolio includes the following investments in the given proportions:

What are the investment proportions of your client's overall portfolio, including the position in T$-$bills? $($Round your answers to $1$

decimal place.$)$ The Polaris Company uses a job$-$order costing system. The following transactions occurred in October:

Raw materials purchased on account, $$210,000.$

Raw materials used in production, $$191,000($$$152,800$ direct materials and $$38,200$ indirect materials$).$

Accrued direct labor cost of $$50,000$ and indirect labor cost of $$21,000.$

Depreciation recorded on factory equipment, $$105,000.$

Other manufacturing overhead costs accrued during October, $$130,000.$

The company applies manufacturing overhead cost to production using a predetermined rate of $$5$ per machine$-$hour. A total of $76,300$ machine$-$hours were used in October.

Jobs costing $$513,000$ according to their job cost sheets were completed during October and transferred to Finished Goods.

Jobs that had cost $$448,000$ to complete according to their job cost sheets were shipped to customers during the month. These jobs were sold on account at $22\%$ above cost.