Answer:
Usually right between 100,000 and 600,000.
The return of equity will increase. Businesses can finance
themselves with debt and equity capital. By aggregating the quantity of debt
capital kin to its equity capital, a company can increase its return on equity.
The way in which rising financial leverage increases ROE is a
little less instinctive. One way to think about it is that if a business
adds debt, its assets increase for the reason that its
cash inflows from the debt issuance and so does its
entire debt.
Answer:
Letter d is correct. <em>Commodity chain</em>
Explanation:
Commodity chain is a technique widely used in the globalized capitalist world. In this process organizations produce their goods in various locations, which becomes a connected link of production and distribution in a globalized market. The advantages of the commodity chain is to achieve significant cost savings from purchasing goods from other countries, as well as increased production volumes and reach of international customers that enhances an organization's global perspective.
Answer:
The fund with the highest information ratio measure is Fund B.
Explanation:
From the information provided:
Definition: The information ratio measures and compares the active return of an investment compared to a benchmark index relative to the volatility of the active return.
Formula: RETURN ON THE MARKET PORTFOLIO / STANDARD DEVIATION
Let's use this formula to calculate for Fund A, Fund B and Fund C.
Fund A : (20 - 6 - 0.8) ( 19 - 6 ) / 4 = 0.9
Fund B : (21 - 6 - 1 ( 13 ) / 1.25 = 1.6
Fund C : (23 - 6 - 1.2) ( 13 ) / 1.2 = 1.167
Therefore, The fund with the highest information ratio measure is Fund B.
