Answer:
a)
Project Y and Project Z
b)
Project X and Project Y
c)
Project X and Project Z
Explanation:
Apply the CAPM to calculate the required return for each project as followed:
Project W: 4% + 0.75 * (11%-4%) = 9.25%
Project X: 4% + 0.90 * (11%-4%) = 10.3%
Project Y: 4% + 1.15 * (11%-4%) = 12.05%
Project Z: 4% + 1.45 * (11%-4%) = 14.15%
So, for:
a)
Which projects have a higher expected return than the firms 11 percent cost of capital: Project Y 12.8% and Project Z 13.9% which are given.
b)
Project should be accepted is project that has expected returns higher than required return which is Project X and Project Y.
c)
Using the firm's overall cost of capital as a hurdle rate:
Project Z will be accepted which is incorrect because its Required returned is higher than its expected returns ( 14.15% > 13.9%)
Project X will be rejected which is incorrect because its Required returned is lower than its expected returns ( 10.3% < 10.8%).
Answer:
D. job satisfaction
Explanation:
Job satisfaction measures how contented a staff is with his job. It measures how the employee feels about his job.
Mitch likes his job, his co workers and his salary. Mitch is likely to have a high job satisfaction
I hope my answer helps you
A weighted average of the risk of each individual investments in the portfolio. The weighted average of risk is found using the standard deviation.
I believe it must be by the hands of a weapon such as a gun.
The FDA, but I don't know what the others are.
