The market risk premium of Fund P will be 5.5%.
<h3>How to calculate the market risk premium?</h3>
It should be noted that as per CAPM, the return in stock will be:
= Risk free rate + Beta × Market risk premium
8.90% = 4.5% + 0.8 × Market risk premium.
Market risk premium = 5.5%
In conclusion, the market risk premium of Fund P will be 5.5%.
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Answer:
Option (D) is correct.
Explanation:
Initial price = $7
Initial quantity supplied = 4,500
New price = $9
New quantity supplied = 5,500
Percentage change in Quantity supplied:
= (Change in quantity supplied ÷ Initial quantity supplied) × 100
= [(5,500 - 4,500) ÷ 4,500] × 100
= (1,000 ÷ 4,500) × 100
= 0.22 × 100
= 22%
Percentage change in price:
= (Change in price ÷ Initial price) × 100
= [($9 - $7) ÷ $7] × 100
= ($2 ÷ $7) × 100
= 0.2857 × 100
= 28.57%
Therefore, the price elasticity of supply is as follows:
= Percentage change in quantity supplied ÷ Percentage change in price
= 22 ÷ 28.57
= 0.77
Hence, the price elasticity of supply of oranges is inelastic, since it is less than 1.
Answer:
The correct answer is: halo effect.
Explanation:
In marketing, the halo effect takes place when the positive characteristics of a certain product are extended affecting the brand as a whole. Goods and services that provoke halo effects are beneficial for entities because they boost customers' loyalty.
Answer:
d. Time of the year
Explanation:
The<em> time of the year</em> reflects on fruit production (season growth). As most seasonal goods, its price varies drastically from the in-season period to the time when it's not in season. The temporal factor influencing this variation is the exact time of the year, as that is synonymous with the season period.
The answer to that question is “False”.
