Answer:
1. The riskier stock is the one with the higher beta which is Handy Ltd.
Use CAPM to calculate the required return on both stocks. The formula is:
Required return = Risk free rate + beta * (market return - risk free rate)
Gans Ltd Stock Handy Ltd Stock
= 4% + 0.9 * ( 10% - 4%) = 4% + 1.8 * (10% - 4%)
= 9.4% = 14.8%
Difference = 14.8 - 9.4
= 5.4%
2. a. Expected return
Expected return is a weighted average of the returns given the probability of the different state of economies.
= (0.25 * 18%) + (0.4 * 5%) + (0.35 * -2%)
= 0.045 + 0.02 - 0.007
= 5.8%
b. Required return
Using CAPM like in question 1:
Required return = Risk free rate + beta * (market return - risk free rate)
= 4% + 1.2 * ( 10% - 4%)
= 11.2%
c. The asset <u>should not be purchased</u> because its expected return is lower than its required return. This means that the stock is not providing enough return for the risk incurred.
It is inaccurate to say FTC does not regulate funeral home services because it does not regulate this sector of business.
<h3>What is the function of Funeral rule of Federal Trade Commission?</h3>
The Federal Trade Commission (FTC) strives to stop unfair, dishonest, and fraudulent commercial activities. They also offer information to aid consumers in recognizing, avoiding, and stopping fraud and scams. The FTC Funeral rule became operative on April 30, 1984.
Every year, the FTC performs undercover inspections to ensure that funeral establishments are abiding by the Funeral Rule. The Funeral Rule is in effect whenever a consumer asks a funeral provider for information, if the consumer is looking into pre-need or at-need preparations.
To know more about Federal Trade Commission, check out:
brainly.com/question/8244775
#SPJ4
I will assume this is a true or false question, the answer is true. Stimulate demand implies make or upgrade request. Request brings about monetary action, so you empower request to animate the economy. I hope the answer will help you..
Answer:
As long as you cool w/ ppl from the LGBTQ+ community :)
Answer:
Generate traffic.
Explanation:
Direct marketing is a type of marketing strategy that involves communicating directly with potential customers. In this type of advertising strategy there is no middleman as business is transacted directly from the producers to the customers.
Direct marketing helps an organization to increase its sales, it also helps to build a strong relationship with customers. Direct marketing mediums include: newspapers, postcards, catalogs, phone calls.
