Answer:
Stock Y is undervalued because the reward-to-risk ratio for Stock Y is higher than the SML
Stock Z is overvalued because the reward-to-risk ratio for Stock Z is lower than the SML
Explanation:
From the question,
It is given:
FOR STOCK Y
Stock expected return = 14.7%
Stock beta = 1.4
risk-free rate is 5.2%
The Reward-to-risk ratio is given by the difference between the stock expected return and risk free rate divided by the stock beta.
Therefore
Reward-to-risk ratio for stock Y = (14.7% - 5.2%)/1.4
= 6.79%
FOR STOCK Z
Stock expected return = 8.7%
Stock beta = 0.7
risk-free rate is 5.2%
Therefore
Reward-to-risk ratio for stock Z = (8.7% - 5.2%)/0.7
= 5%
FOR SML
market risk premium = 6.2%
Risk rate = 5.2
Therefore
Reward-to-risk ratio for SML = (6.2%)/6.2 - 5.2
= 6.20%
Stock Y is undervalued because the reward-to-risk ratio for Stock Y is higher than the SML
Stock Z is overvalued because the reward-to-risk ratio for Stock Z is lower than the SML
Answer: $5,300
Explanation:
Private Saving refers to money that households did not consume nor pay as taxes so the formula is;
= Output - Consumption - Taxes
= 14,000 - 7,500 - 1,200
= $5,300
Public Saving refers to money that the government got as revenue but did not spend so the formula is;
= Taxes - Government Spending
= 1,200 - 1,200
= $0
Total Saving (Private + Public Saving)
= 5,300 + 0
= $5,300
Accompanying the bank statement was a debit memo for bank service charges. On the bank reconciliation, the item is a deduction from the balance per the company's records.
<h3>What is
a bank statement?</h3>
Generally, Bank service charge refers to the fees that the bank levies against the company for the company's transactions involving its bank account.
This is shown as a deduction on the company's bank statement as reported by the bank, but it has not yet been recorded in the company's records.
Along with the bank statement, there was a debit memo for the bank service charges that were included. According to the records of the company, the item will be deducted from the total balance on the bank reconciliation.
Read more about bank statement
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Answer:
The sentence uses an active voice
In this case active voice is not appropriate
Explanation:
Mode of expression can be passive or active.
Passive voice is one that emphasises the subject or person that is receiving an action.
An active voice describes a person that is performing an action.
In this scenario Jake accidentally input $560 instead of $650 on one of the invoices. The writer hasn't contacted you about the error yet.
So the email sent should just focus on what has happened to the writer and also to proffer a solution to the problem.
Since the writer did not complain or request for information on who made the mistake, stating that it was Jake that made the error is inappropriate.
A better statement would have been - An error was made on your invoice where the figure was inputted as $560 instead of $650. This however has been rectified and the invoice forwarded to you.
