Answer:
The correct option is A, Portfolios X and Y are in equilibrium
Explanation:
Adopting Miller and Modgiliani Capital Asset Pricing Model formula, the return on both portfolios can be determined:
Expected return=Risk free return+Beta(Market return-Risk free return)
Portfolio X:
Risk free return=8%
Beta=1.0
Expected return=14%
Let market return be MR
14%=8%+1.0(MR-8%)
14%-8%=1.0*(MR-8%)
6%=MR-8%
MR=6%+8%
MR=14%
Portfolio Y:
Risk free return=8%
Beta=0.25
Expected return=9.5%
let market return be MR
9.5%=8%+0.25(MR-8%)
9.5%-8%=0.25MR-2%
1.5%=0.25MR-2%
1.5%+2%=0.25MR
0.25MR=3.5%
MR=3.5%/0.25
MR=14%
Hence both portfolios are at equilibrium since they have the same market return
Answer:
<em>Value of the stock in four years: $22.69</em>
Explanation:
We use the gordon model to sovle for the intrinsic value (fair value) of the share according to their future cash flow:
the formula uses next year dividends so we need to calcualte:
2.70 x 1.024 = 2,7648
Now we can solve for the value of the stock:
g = 0.024
r = 0.158
Present Value = 20.63283582
That is the value of the stock today.
Now we apply the grow factor for the next four year:
Principal 20.63283582
time 4.00
rate 0.02400
<em>Amount 22.69</em>
Answer:
E) China, Canada, and Mexico were the three largest markets for U.S. goods exports.
Explanation:
As of 2017, the 10 largest markets for US exports were (measured in millions of dollars):
- Canada $282,265
- Mexico $243,314
- China $129,894
- Japan $67,605
- Great Britain $56,258
- Germany $53,897
- South Korea $48,326
- Netherlands $41,510
- Hong Kong $39,939
- Brazil $37,222
Answer:
Advertising itself should be carried out toward the target market, that should always be the main plan.
The Brazilian markets differs in areas like culture, race, climate etc, as against that of The United States market, they also might have their preferences in a different way.for this, there should always be a different advertising system plan for Brazil
Explanation:
Solution
Advertising should always be done keeping in mind the target market.
The Brazilian market is different totally in terms of ethnicity, race,culture, likes, dislikes, preferences, climate, mindsets as compares to US market. they might not like what The United States market would like so there should be a difference in advertising plan for Brazil.
Answer:
Production manager
Explanation:
In the firm or company, the duty of the production manager is to ensure that the manufacturing processes should run efficiently as well as reliably. In short, it means to ensure that the operations are being done through the employees, follow the limitation, which is created in the budget. The production manager will ensure that the firm will accomplish all the objectives by maintaining the profitability at the same time.
The responsibilities of the job involve, organising as well as planning the production, negotiates and create budgets and the timescales with managers and clients.
