1. Explain why each of the following combinations of tasks should or should not be separated to achieve adequate internal control.

a. Approval of bad debt write-offs and the reconciliation of the accounts receivable subsidiary ledger and the general ledger control account.

b. Distribution of payroll checks to employees and approval of employee time cards. separated.

c. Posting of amounts from both the cash receipts and the cash disbursements journals to the general ledger.

d. Writing checks to vendors and posting to the cash account.

e. Recording cash receipts in the journal and preparing the bank reconciliation.

2. Suppose you invest equal amounts in a portfolio with an expected return of 16 percent and a standard deviation of returns of 18 percent and a risk-free asset with an interest rate of 4 percent. Calculate the expected return on the resulting portfolio.