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Inga [223]
2 years ago
11

The CAPM is built on historic conditions, although in most cases we use expected future data in applying it. Because betas used

in the CAPM are calculated using expected future data, they are not subject to changes in future volatility. This is one of the strengths of the CAPM.
a. True
b. False
Business
1 answer:
dimaraw [331]2 years ago
4 0

Answer:

False

Explanation:

The reason is that the betas are calculated using the past data which means that the Capital asset pricing model solely rely on the past data which is not the strength of the CAPM. It is basically a weakness of the model so the statement is incorrect.

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f foreign investmentforeign investment fell by​ 100%, it would be cut in half.​ Thus, a decrease of​ 200% means that it would be
Sonja [21]

Answer:

if foreign investment fell by 100% it would be totally eliminated, so it not possible for it  to fall by more than 100%

Explanation:

Since in the question it is given that reduction of the western investment for the third world countries consist that foreign investment falls by 350% for the year 1990s

So if we go through the options, the wrong statement is the last one as it shows that the foreign investment fall by 100% i.e to be fully eliminated

Hence the other options are wrong

6 0
3 years ago
Attempts
jenyasd209 [6]

The following are topics in macroeconomics:

  1. The optimal interest rate for the Federal Reserve to target
  2. The effect of a large government's budget deficit on the economy's price level

The following are topics in microeconomics:

How a quota on textile imports affects the textile industry

<h3>What is microeconomics and macroeconomics?
</h3>

Microeconomics studies individuals and business decisions, while macroeconomics studies the government decisions and its impact on the economy.

Macroeconomics is a top-down approach while microeconomics is a bottom-up approach to analysing the economy.

To learn more about macroeconomics, please check: brainly.com/question/13244131

#SPJ1

4 0
1 year ago
The following information was taken from the records of Roland Carlson Inc. for the year 2017: income tax applicable to income f
avanturin [10]

Answer:

Following are the  solution to the given question:

Explanation:

Revenue before continuing business                                      585000

less:income tax                                                                         -187000 

Continuous business revenue                                                398,000

Operations stopped

Loss of non-compliance                                    -75000

Less: Applicable drop in income tax from        25500           - 49500

net sales                                                                                     348500

Popular inventory per share

Continued operating revenue [\frac{398000}{100000}] \ \ \ \ \ \ \ \ \ \ \ \ \  \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \$3.98

Losses on disrupted businesses, tax net[\frac{-49500}{100000}] Net-0.495

Net profits [\frac{348500}{100000}] \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 3.485

8 0
2 years ago
For each of the following scenarios, determine if it is an indicator of potential cash flow problems: (Hint: Review Chapter 5 Po
inn [45]

Answer:

a) yes

b) no

c) yes

d) no

Explanation:

a) if the A/R balance grow higher than the sales is an indicator that our collection cycle increase thus, customer extend their financiation providing less cash flow

b) this is the opposite as (a)  here we extend our financing agaist our suppliers. The payment cycle increases thus, decreasing the overall cash demand

c) If the assets were puirchased on cahs a huge amount was used alrady affecting the liquidity of the company.

If the company finance the purchase of the long term assets, in the future the company will have to dedicate a portion of their future cahs flow to pay up interest and principal which is what we should analize; wether or not the company will have difficulties in the future and the answer is yesin both scenarios.

d) no. It will not, as marketable securities are generally short-term and easily converted into cash in the short term. They do not generate cash flow problems in the long run as the company can sale them anytime to obtain cash.

6 0
3 years ago
Ellen Kelly Inc. had 31,300 shares of $.50 par common stock 10,000 shares of 5%, $20 par cumulative preferred stock and 5,000 sh
Serga [27]

Answer:

10,000 common stock.

The EPS = earnings per share = Earnings before tax divided by outstanding common stock in issue

4 0
2 years ago
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