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Inga [223]
3 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]3 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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Match the correct strategy to the risk..
Brilliant_brown [7]

The following would be the correct answers in order to match the correct strategy to the risk:

1 - Disability Insurance - A Disability

2. Read all contract before you sign - C Scams

3. Warranty - E Product Failure

4. Homeowner’s Insurance - B An expensive repair to the roof of your house

5. Do not give out personal information - D Identity Theft

3 0
3 years ago
Plainville Corporation has the following data, in thousands. Assuming a 365-day year, what is the firm's cash conversion cycle?
devlian [24]

Answer:

Inventory cycle  = <u>Inventory </u>               x 365  days

                             Cost of goods sold      

Inventory cycle  = <u>$75,000</u>     x 365 days

                              $360,000  

                           = 76.04 days

Receivable days =  <u>Accounts receivable</u> x  365 days

                                       Sales        

                            = <u>$160,000</u>   x 365 days

                               $600,000  

                            =  97.33 days

Payable days      = <u>Accounts payable</u>  x 365 days

                              Cost of sales      

                            = <u>$25,000 </u>    x 365 days

                               $360,000  

                            = 25.35 days

Cash conversion cycle

= Inventory cycle + Receivable days - Payable days

= 76.04 days + 97.33 days - 25.35 days

=  148.0 days

Explanation:

Cash conversion cycle is calculated as raw inventory cycle plus receivable days minus payable days. Inventory cycle is the ratio of inventory to cost of goods sold multiplied by number of days in a year. Receivable days refer to the ratio of accounts receivable to sales multiplied by number of days in a year. Payable day is the ratio of accounts payable to cost of goods sold multiplied by number of days in a year.

6 0
3 years ago
Which statement best explains student loans that cover the costs of an education?
aleksandrvk [35]
The statement which best explains student loans that cover the costs of an education is : b)They require repayment with interest. In order to get financial aid for your education you have to sign a contract with a loan company. Most of loan companies provide students with loans with interest, but there is a possibility to find an interest free loan if yuo are a student of a federal government. The interest you have to pay is established in your contract. And if you borrow with a no-interest loan, you will just pay back the same amount that you took from the company.
7 0
3 years ago
Read 2 more answers
An industry example of each of the four market structures of monopoly
baherus [9]

Answer:

An oligopoly market structure is very usual in the context of Australian. Maximum service industry like banking, retail etc. follow the market structure of the oligopoly. The grocery retail sector in Australia is a core example of the duopoly, a narrowed version of oligopoly (Chung, 2015). Moreover, the banking sector of Australia is a proper example of an oligopoly. The main feature that the oligopoly market structure follows is, in this type of market few firm operate as a sole authority in a market (LaFrenz, 2014). In the case of monopoly, there is only one seller who rules the whole market and business as well. The monopolistic competition involves firm competing strongly among them in an industry. They do not allow any other organisation to enter the market. The Australian Post is a major example of monopoly market structure. Banking and Retail sectors are the key examples of monopoly market structure (Welch & Welch, 2009).

Apart from the banking industry, the retail industry in Australia faces very strong competition. The giant monopolistic retail companies named Coles and Woolworths have grabbed maximum market share in the industry. It is being very difficult for all other small and big organisation to sustain in the market. It is surveyed that, the banking industry of Australia is facing strong competition or oligopolistic war. Smith (2015), has informed that the existent incumbents in the banking industry are strictly prohibiting the other new entrants for the sector (Smith, 2015).

Explanation:

^^^^^^

7 0
2 years ago
If the velocity of money is 3 and the amount of narrow money is $1.56 billion, what would be the nominal GDP?
liberstina [14]

Answer:

c. $4.68 trillion

Explanation:

Narrow money refers to the physical money coins and notes within an economy. It is a way of measuring the money that is available for immediate spending in the economy.

The velocity of money is the rate at which money circulates in the economy. Therefore, the velocity of money is a measure of the number of times narrow money circulates in the economy per period.

If the velocity of money is 3, narrow money circulates three times,  meaning the value of GDP will be the velocity of money multiplied by narrow money

=3 x 1.56 billion

=4.68 billion

7 0
3 years ago
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