Isaac has a $900,000 fully diversified portfolio. He subsequently inherits TURE Company common stock worth $100,000. His financial adviser provided him with the following forecast information: The Expected Monthly Returns for original portfolio and TURE company are 0.23% and 1.45%. The Standard Deviation of Monthly Returns of original portfolio and TURE company are 2.37% and 2.95%. The correlation coefficient of TURE stock returns with the original portfolio returns is 0.40. Assume she does this, what is the expected return of her new porfolio which includes the government securities. Covariance of the government security returns with the original portfolio returns. Standard deviation of her new portfolio which includes the government securities. Based on the conversations with her husband, she is considering selling the $100,000 of ABC stock and acquiring of XYZ company common stock instead. XYZ stock has the same expected return and SD as the ABC stock. Her husband comments, "it doesn't matter whether you keep all of ABC stock or replace it with $100,000 of XYZ stock". Required:
Is her husband's comment correct or incorrect?

The law firm of furlan and benson accumulates costs associated with individual cases, using a job order cost system. the following transactions occurred during july: jul. 3 charged 175 hours of professional (lawyer) time to the obsidian co. breech of contract suit to prepare for the trial, at a rate of $150 per hour. 10 reimbursed travel costs to employees for depositions related to the obsidian case, $12,500. 14 charged 260 hours of professional time for the obsidian trial at a rate of $185 per hour. 18 received invoice from consultants wadsley and harden for $30,000 for expert testimony related to the obsidian trial. 27 applied office overhead at a rate of $62 per professional hour charged to the obsidian case. 31 paid administrative and support salaries of $28,500 for the month. 31 used office supplies for the month, $4,000. 31 paid professional salaries of $74,350 for the month. 31 billed obsidian $172,500 for successful defense of the case. required: a. provide the journal entries for each of these transactions. refer to the chart of accounts for exact wording of account titles. b. how much office overhead is over- or underapplied? c. determine the gross profit on the obsidian case, assuming that over- or underapplied office overhead is closed monthly to cost of services.