Answer: a. The y-axis intercept would decline, and the slope would increase.
Explanation:
The security market line is simply refered to as the graphical representation of a CAPM which is the capital asset pricing model and it simply shows the market risk, of the securities in the market which is then plotted against the market return.
When the expected inflation rate decreases and the investors also become more risk averse, the Security Market Line would be affected, as the y-axis intercept would decline, and the slope would increase.
Answer:
The correct answer is option a.
Explanation:
An interior decorator has moved his business from Los Angeles to St. Paul, Minnesota because his spouse's company transferred her to St. Paul.
The decorator is distressed because the customers in his target market have, in his words, "banal and bourgeois taste."
The customers in St. Paul have a different taste from the customers that he catered to in Los Angeles. The consumer tastes and preferences may differ from place to place according to the climatic conditions, social status, cultures, etc.
The problem with the decorator is that he does not understands that customer needs are not right or wrong, good or bad. It is not right or wrong if the customers in Minnesota have a different preference from customers in Los Angeles.
Answer:
Monthly payment =$32,618.05
Explanation:
<em>To arrive at the monthly installment, we would calculate the total interest due on the loan for nine months, add it to the principal and then divided the sum by 9 months</em>
<em>The monthly installment</em>
= (Principal + total interest for 9 months)/ number of months
<em>Interest for 9 months </em>
= 9%× 9/12 × 275,000
= $18,562.5
<em>Monthly installment</em>
= (275,000 + $18,562.5)/9
=32,618.05 per month
The assumptions that are made in CVP analysis includes the following:
- costs can be classified as variable or fixed.
- costs are linear within the relevant range.
- constant fixed cost per unit.
<h3>What is CVP analysis?</h3>
Cost Volume Profit analysis is the type of analysis that has to do with the cost accounting. This type of analysis is one that takes the impact of the various costs and volume on profit.
It helps to check how the changes that occur in the variable and the fixed cost affect profit.
Read more on CVP analysis here:
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Answer:
True
Explanation:
Market research involves collecting, analyzing, and interpreting information regarding a company's brand name, products, services, or the market. It is concerned with gathering data on potential customers, existing and possible competitors of a product about to be launched. Market research is more of a feasibility study on products and services or markets.
Market research involves collecting data from different people, such as suppliers, customers, distributors, and traders. One has to engage these individuals and gather as much information from them. The activities of obtaining information are comparable to data mining.
