Answer:
The correct option is A, Portfolios X and Y are in equilibrium
Explanation:
Adopting Miller and Modgiliani Capital Asset Pricing Model formula, the return on both portfolios can be determined:
Expected return=Risk free return+Beta(Market return-Risk free return)
Portfolio X:
Risk free return=8%
Beta=1.0
Expected return=14%
Let market return be MR
14%=8%+1.0(MR-8%)
14%-8%=1.0*(MR-8%)
6%=MR-8%
MR=6%+8%
MR=14%
Portfolio Y:
Risk free return=8%
Beta=0.25
Expected return=9.5%
let market return be MR
9.5%=8%+0.25(MR-8%)
9.5%-8%=0.25MR-2%
1.5%=0.25MR-2%
1.5%+2%=0.25MR
0.25MR=3.5%
MR=3.5%/0.25
MR=14%
Hence both portfolios are at equilibrium since they have the same market return
Answer:
elastic demand curve
Explanation:
Based on the information provided within the question it can be said that an elastic demand curve would result in the largest change in the price of restaurant meals. This is because this demand curve illustrates the large changes in prices as demand for the product or service either goes up or down throughout the years.
The answer is during A Peak
Answer:
do nothing.
Explanation:
Under the equity method, Johnson's investment in Rockford industries will only vary when Rockford distributes dividends (which reduces the investment amount) or when they earnings or losses. Johnson will recognize 30% f Rockford's earnings as income from is investment, and will also recognize 30% of Rockford's losses as a decrease in its investment (loss). The equity method is not based on stock price.
Based on economic theory, scarcity is limitation of a resource which cannot be replenished. Shortage is used to indicate a market condition.
When applying this definition to your question, A is your answer.
