Answer:
2.2
Explanation:
In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below
Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)
18% = 7% + Beta × 5%
18% - 7% = Beta × 5%
11% = Beta × 5%
So, the beta would be
= 2.2
The (Market rate of return - Risk-free rate of return) is also known as market risk premium and the same has applied.
Answer:
Worth of both the property will be same.
Explanation:
Data provided in the question:
Cap rate for the Property A which is a self storage capacity = 6%
Cap rate for the Property B which is an office building = 6%
NOI of both the buildings are equal
Now,
Mathematically,
Cap rate is given as = [ NOI ] ÷ [ Worth of the property ]
or
Worth of the property = [ NOI ] ÷ [ Cap rate ]
Since, the NOI and cap rate for both the buildings are same
Therefore,
Worth of both the property will be same.
Answer:
Ponzi scheme
Explanation:
Ponzi scheme is a fraud investment strategy that promises to pay a substantial sum of returns. In a Ponzi scheme, generate income for the old investor by using the money of the newest investor and this chain goes on. This is basically a fraudulent scam or investment strategy to get a significant amount of money. Ponzi scheme is similar to pyramid strategy both are based on using new investor’s fund.
<span>Foreign companies and investors benefit the most from a falling dollar. When the amount that a dollar can buy depreciates, it becomes more expensive, relatively, to purchase foreign goods. In addition and because of this depreciation, it also becomes relatively less expensive for foreign investors to purchase domestic goods, which means that foreign companies can buy more from US-based businesses.</span>
Answer:
<h2>
Value of X = 1</h2>
<h2>
Value of y = 3</h2>
Solution,
Using substitution method,
y + x = 4
Move 'x' to the left hand side and change its sign:
y = 4 - x --------> equation (i)
Now,
2y - X = 5
putting the value of y from equation (i)
2( 4 - x ) - X = 5
8 - 2x - x = 5
8 - 3x = 5
- 3x = 5 - 8
- 3x = - 3
The difference sign (-) will be cancelled in both sides
3x = 3
3x/3 = 3/3
X = 1
Value of X is 1
Now, replacing the value of X in equation (i)
y = 4 - x
= 4 - 1
= 3
Value of y is 3
Hope this helps...
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