Answer:
The correct answer is option (A).
Explanation:
According to the scenario, the computation of the given data are as follows:
First, we will calculate the Market risk premium, then
Market risk premium = (Required return - Risk free rate ) ÷ beta
= ( 9.50% - 4.20%) ÷ 1.05 = 5.048%
So, now Required rate of return for new portfolio = Risk free rate + Beta of new portfolio × Market premium risk
Where, Beta of new portfolio = (10 ÷ 18.5) × 1.05 + (8.5 ÷ 18.5) × 0.65
= 0.5676 + 0.2986
= 0.8662
By putting the value, we get
Required rate of return = 4.20% + 0.8662 × 5.048%
= 8.57%
Answer:
Option (b) is correct.
Explanation:
Cyclical unemployment refers to the unemployment that occured because of the fall in the demand for goods and services in an economy. It is largely affected by the fluctuations in economic growth of a country. When the overall demand for goods and services are not matched with the full employment in an economy. This unemployment is mostly occured when the economy of a country is contracting.
Answer:
$92,00
Explanation:
Base on the scenario been described in the question which we saw how Carly donated an to the church, when she purchased the gift, it was $100,000 but when she is to present the gift to the church, the fair market value became $92,000 which is her maximum charitable contribution deduction
the charitable deduction for ordinary income property is the lesser of fmv or basis limited to 50% of AGI
Answer:
How will the government’s budget deficit be affected by public infrastructure projects?
Explanation:
Macroeconomics is concerned with the general behavior and changes in the economy as a whole. Macroeconomics studies parameters that affect the entire economy, such as inflation, unemployment, national income, gross domestic product (GDP), and general price levels. It contrasts microeconomics, which studies the choices and behavior of individual households and industries.
A government's budget is for the entire economy. A deficit that affects public infrastructure projects will impact the country's economic development programs. Government spending forms part of fiscal policies that influence economic development in a country.
The answer is <u>"A. Mutual funds".</u>
A mutual fund is a professionally overseen investment support that pools cash from numerous speculators to buy securities. These speculators might be retail or institutional in nature.
Mutual funds have points of interest and drawbacks contrasted with direct putting resources into individual securities. The essential favorable circumstances of mutual funds are that they give economies of scale, a larger amount of broadening, they give liquidity, and they are overseen by expert financial specialists. On the negative side, financial specialists in a mutual funds must pay different charges and costs.