The change in the market value of an asset over some time period is called the capital gain.
A capital gain is any profit you making off of an asset due to the market value increasing. This is common when you purchase a home, you want to make sure (if you can) that you sell when the market value is higher than the price you paid initially. It's common to invest in something in hopes to achieve a capital gain from that investment.
Answer:
"Delegative" is the right response.
Explanation:
- Whenever a supervisor assigns one and sometimes more employees or assistants responsibility for actions and choices as well as behavior, is termed as a Delegative style.
- These types of leaders inspire and motivate their department heads to live with the choices that even the successful leader requires.
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.
Answer:
The answer is Place. Option E.
Explanation:
In the marketing mix which constitutes; product, promotion, price, and place, the process of moving products from the point of production to the point(s) where the customers can access them is called place.
Put simply, it is the way in which a manufacturer's product is bought and where it is bought. This movement of products could be achieved through the use of one or a combination of the following intermediaries:
- Distributors,
- Wholesalers, and
- Retailers.
Therefore, the creative locations in the scenario above represent the marketing mix dimension of place, because it is the effort of Starbucks to make its product available to its customers at different locations.
When it comes to the business cycle, the Real GDP can be described as the total value of the output of a nation, after this is adjusted for inflation.
<h3>What is Real GDP?</h3>
Real Gross Domestic Product (GPD) refers to the total value of goods and services produced in a year within a nation.
This amount is called "Real" when it has been adjusted for the effect of inflation on the nation and the prices of goods.
Find out more on Real GDP at brainly.com/question/13604000.
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