Answer:
The portfolio with a beta of 1.38 should earn the most risk premium based on CAPM.
The correct answer is B
Explanation:
A diversified portfolio with returns similar to the overall market will not earn the most risk premium because its beta is equal to 1.
A stock with a beta of 1.38 produces the most risk premium because any stock with the highest beta gives the highest risk-premium. This is the correct answer.
A stock with a beta of 0.74 does not provide the highest risk premium.
Us treasury bill does not provide any risk premium since it is the risk-free rate.
A portfolio with a beta of 1.01 does not produce the highest risk premium.
Answer:
D) democratic
Explanation:
A democratic leadership style is a type of leadership where a leader asks for the inputs of emoloyees in making decisions and the final decision made by the leader is based on the inputs of members.
Jared's boss allows his staff to give inputs but he makes the ultimate decision .
In an autocratic leadership style, the leader doesn't take any input from employees when making decisions.
Laissez faire is a type of leadership style where employees are given a free rein in the company.
Answer:
In the short run, these workers are VARIABLE inputs, and the ovens are FIXED inputs.
Explanation:
Workers are variable inputs since Raphael can decide to change the number of employees hired every week or every certain period of time. On the other hand, the number of ovens cannot change immediately since Rapheal would need to move to some other place in order to increase the number of ovens.
Answer:
$160
Explanation:
Calculation to determine How much does the investor gain or lose
Investor gain =[($20-$18.2)*100 Shares]- ($0.2*100 shares)
Investor gain=($1.8*100 shares)-($0.2*100 shares)
Investor gain=$180-$20
Investor gain=$160
Therefore The amount that the investor gain is $160