Answer:
True
Explanation:
The reason is that the straight line equation is used to illustrate the relation between the rate of return and the beta factor and is given as under:
Y = a + bX
Here
a = Rf
B = Risk premium = Rm - Rf
X = Beta Factor
So this means the security market line is the graphical presentation of capital asset pricing model and illustrates why the increase in beta factor increases the required rate of return, the reason is that the the overall required return Y of the investment will start increasing with the increase in the beta factor.
So the statement is true.
Answer:
The effective annual rate of interest is 23.45%
Explanation:
Effective annual rate of interest=(1+annual interest)^365/t-1
Annual interest =discount rate/100%-discount rate
discount rate here is 2%
annual interest=2/100-2
=2.04%
T is the difference between the discount period of 10 days and credit period of 45 days
45-10=35 days
Effective annual rate of interest=(1+2.04%)^(365/35)-1
=(1.0204^10.42857143)
-1
= 1.2345 -1
=0.2345
=23.45%
Answer:
The Jerry's partnership basis in the bookstore at the end of the year is $23,350.
Explanation:
Workings
Contributed Capital = $ 8,000
Add: Adjusted basis of cash register = $ 350
Add: Share of Profit ($60000 X 25%) = $ 15,000
Partnership basis at the end of the year = $ 23,350
The next step after publishing a project schedule activities, start/end times and resources are identified is TO CONFIRM THE AVAILABILITY OF RESOURCES
Once the resources are identified the project manager should make sure that the identified resources are available
