Answer: Expected Return = 12%
Explanation:
Yield on short-term government securities = 4%
The expected return required by the market for a portfolio with a beta of 1 = 12%
Now, according to the capital asset pricing model:
Expected Return = Risk-free rate + Beta × (expected return on the market - risk-free rate)
= 4 + 1 (12 - 4)
= 12%
∴ The expected return on the market portfolio is 12%.
Answer:
equilibrium quantity = 7
equilibrium price = 107
Explanation:
Data provided in the question:
supply function, p = q² + 6q + 16 ........(1)
demand function is p = −7q² + 2q + 436
Now at equilibrium
Demand = Supply
Thus,
q² + 6q + 16 = −7q² + 2q + 436
or
q² + 6q + 16 + 7q² - 2q - 436 = 0
or
8q² + 4q - 420 = 0
or
2q² + q - 105 = 0
on solving for the roots of q
using the Quadratic Formula where
a = 2, b = 1, and c = -105
![[ x = \frac{ -b \pm \sqrt{b^2 - 4ac}}{ 2a }]](https://tex.z-dn.net/?f=%5B%20x%20%3D%20%5Cfrac%7B%20-b%20%5Cpm%20%5Csqrt%7Bb%5E2%20-%204ac%7D%7D%7B%202a%20%7D%5D)
a = 2, b = 1, and c = -105
Thus,
![[ q = \frac{ -1 \pm \sqrt{1^2 - 4(2)(-105)}}{ 2(2) }]](https://tex.z-dn.net/?f=%5B%20q%20%3D%20%5Cfrac%7B%20-1%20%5Cpm%20%5Csqrt%7B1%5E2%20-%204%282%29%28-105%29%7D%7D%7B%202%282%29%20%7D%5D)
![[ q = \frac{ -1 \pm \sqrt{1 - -840}}{ 4 }]](https://tex.z-dn.net/?f=%5B%20q%20%3D%20%5Cfrac%7B%20-1%20%5Cpm%20%5Csqrt%7B1%20-%20-840%7D%7D%7B%204%20%7D%5D)
![[ q = \frac{ -1 \pm \sqrt{841}}{ 4 }]](https://tex.z-dn.net/?f=%5B%20q%20%3D%20%5Cfrac%7B%20-1%20%5Cpm%20%5Csqrt%7B841%7D%7D%7B%204%20%7D%5D)
The discriminant ( b² - 4ac > 0)
so, there are two real roots.
Therefore,
![q = [\frac{ -1 \pm 29}{ 4 }]](https://tex.z-dn.net/?f=q%20%3D%20%5B%5Cfrac%7B%20-1%20%5Cpm%2029%7D%7B%204%20%7D%5D)
![[ q = \frac{ 28 }{ 4 } \; \; \; q = -\frac{ 30 }{ 4 }]](https://tex.z-dn.net/?f=%5B%20q%20%3D%20%5Cfrac%7B%2028%20%7D%7B%204%20%7D%20%5C%3B%20%5C%3B%20%5C%3B%20q%20%3D%20-%5Cfrac%7B%2030%20%7D%7B%204%20%7D%5D)
![[ q = 7 \; \; \; q = -\frac{ 15}{ 2 }]](https://tex.z-dn.net/?f=%5B%20q%20%3D%207%20%5C%3B%20%5C%3B%20%5C%3B%20q%20%3D%20-%5Cfrac%7B%2015%7D%7B%202%20%7D%5D)
since,
Quantity cannot be negative
Thus,
q = 7
therefore, substituting q in (1)
p = 7² + 6(7) + 16
or
p = 49 + 42 + 16
or
p = 107
Answer:
(D) $48 per machine hour
Explanation:
The predetermined overhead rate is given by total estimated overhead divided by the total estimated machine hours
Total estimated overhead = $7,584,000
Total estimated machine hours = 158,000 hours
Predetermined rate = $7,584,000 ÷ 158,000 hours = $48 per machine hour
Answer:
business-to- consumer (B2C)
Explanation:
Commerce is a business model which typically involves the buying and selling of goods or products at a given price.
Generally, commerce comprises of four (4) business models and these are;
1. Business to Business (B2B).
2. Consumer to Consumer (C2C).
3. Business to Government (B2G).
4. Business to Consumer (B2C).
A Business to Consumer (B2C) can be defined as a market which typically involves businesses selling their goods and services directly to the end consumers for their personal use.
Hence, the type of business that sells to the end consumer is known as business-to- consumer (B2C).
Some examples of companies that engage in the Business to Consumer (B2C) business model are; Amazon, Goo-gle, Walmart, Alibaba, Uber, LinkedIn, etc.
<span>The fact that Anshul had many innovative ideas and he applied his ideas and thoughts to this business and finally succeeded is an example of </span>entrepreneurs<span>hip.
</span>Entrepreneurship involves ideas, new solutions and concepts, creating new systems, resources, or processes to produce new goods or services and/or serve new markets.
