Answer:
The answer is B.
Explanation:
An agency relationship is a relationship between the principal and the agent.
A principal employs the service of an agent who acts on behalf of the principal.
An agent must make sure that there is no conflict on interest.
So in labor market, employer is the principal while the worker or employee is the agent.
Answer:
Expected return on stock =14.1
0%
Explanation:
The Capital Asset pricing Model (CAPM) can be used to determined the expected return on the stock.
<em>According to the Capital Asset pricing Model the expected return on stock is dependent on the level of reaction of the the stock to changes in the return on a market portfolio.
</em>
These changes are captured as systematic risk. The magnitude by which a stock is affected by systematic risk is measured by beta.
Under CAPM, Ke= Rf + β(Rm-Rf)
Rf-risk-free rate (treasury bill rate), β= Beta, Rm= Return on market, Ke-return on stock
Using this model, we can work out the return on stock as follows:
DATA
Ke-?
Rf- 4.5%
β-1.2
8
Rm- 12%
Ke = 4.5% + 1.28× (12-4.5)%=14.1
0%
Expected return on stock =14.1
0%
The creator of The Apple Company is C.Steve Jobs
<span>General motors and Chrysler recently experienced financial distress resulting in near bankruptcies fundamentally because </span>their costs got out of control, causing their total costs to exceed their total revenues.
