Answer:
The expected excess return will be 11.4%
Explanation:
The S&P 500's excess return is the market return (rM). Using the CAPM model or the SML approach, we can calculate the required/expected rate of return on the stock we are investing in.
The expected rate of return is,
r = rRF + β * (rM - rRF)
Thus, return on the invested stock will be:
r = 0.03 + 1.2 * (0.1 - 0.03)
r = 0.114 or 11.4%
Answer:c. Assume an additional 80 units of inventory will be required as safety stock. What will the new average inventory be? What will the new total carrying cost be?
Explanation:
Another important objective of mass communication is to create public opinion on any national or international issue. Mass media attempts to create public opinion through providing their audiences with a realistic picture of the world, activities of the leaders, governmental politics
