Answer:
the portfolio's return will be Ep(r)= 9.2 %
Explanation:
if the stock lies on the security market line , then the expected return will be
Ep(r) = rf + β*( E(M)- rf)
where
Ep(r) = expected return of the portfolio
rf= risk free return
E(M) = expected return of the market
β = portfolio's beta
then
Ep(r) = rf + β*( E(M)- rf)
E(M) = (Ep(r) - rf ) / β + rf
replacing values
E(M) = (Ep(r) - rf ) / β + rf
E(M) = ( 17.2% - 3.2%) /1.4 + 3.2% = 13.2%
since the stock and the risk free asset belongs to the security market line , a combination of both will also lie in this line, then the previous equation of expected return also applies.
Thus for a portfolio of β=0.6
Ep(r) = rf + β*( E(M)- rf) = 3.2% + 0.6*(13.2%-3.2%) = 9.2 %
Ep(r)= 9.2 %
Answer:
<em>If two similar properties are for sale, a buyer will purchase the cheaper of the two</em>
Explanation:
This principle states <em>a property's maximum value is usually determined by the cost of purchasing an equivalent substitute property having the same usage, design, and income.</em>
For instance, why would someone pay $1,000,000 for an apartment when they could buy a different but equally desirable house for just $750,000 in the same area?
Answer:
First find the Average fixed cost per papper.
That is,
1. Fixed cost is -
, If sales fall by 20%
Then,
So AFC per papper rises from $1.95 to 2.437
2. The MC will be changes from this 20 % fall is
then
So the marginal cost are changes $1.95 to $2.88
3. Before the changes in cost
So the changes is
The amount changes from $2.40 to $2.88 per paper
Explanation:
When the market is low. And prices are right. Cause i invest in silver and i buy when silver is low and then sell when its high.
I cant tell you what to invest in however.
Hope this helps.
Mr. Redenbacher make his agricultural commodity stand out from other products by searching for varieties of popping corn that will be easy to pop lighter and fluffier comparer to others .
<h3>What techniques did Mr. Redenbacher used in making his
agricultural commodity stand out?</h3>
The Mr. Redenbacher used in making his agricultural commodity stand out Mr. Redenbacher used in making his agricultural commodity stand out was that he tested many corns and was able to select the best match for the process.
Hence, Mr. Redenbacher make his agricultural commodity stand out from other products by searching for varieties of popping corn that will be easy to pop lighter and fluffier comparer to others .
Read more about agricultural commodity ;
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