An electronics firm is currently manufacturing an item that has a variable cost of $ 0.45 per unit and a selling price of $ 0.95 per unit. Fixed costs are $16,000. Current volume is 35,000 units. The firm can substantially improve the product quality by adding a new piece of equipment at an additional fixed cost of $6,400. Variable cost would increase to $ 0.60 and the selling price would be revised to $ 1.15 with the expectation that the volume would be 45,000 units as a result of a​ higher-quality product. Requried:Should the company buy the new equipment?

Stock a has a beta of 1.2 and a standard deviation of 20%. stock b has a beta of 0.8 and a standard deviation of 25%. portfolio p has $200,000 consisting of $100,000 invested in stock a and $100,000 in stock b. which of the following statements is correct? (assume that the stocks are in equilibrium.) (a) stock b has a higher required rate of return than stock a. (b) portfolio p has a standard deviation of 22.5%. (c) portfolio p has a beta equal to 1.0. (d) more information is needed to determine the portfolio's beta. (e) stock a's returns are less highly correlated with the returns on most other stocks than are b's returns.