Answer:
Sharpen Ratio = <u> Rp - Rf</u>
standard deviation of portfolio
= <u>13.8% - 3.6%</u>
173.11%
= 0.05892
= 0.059
workings
Return of portfolio = Ra*wa + Rb*Wb
= 15%*0.6 + 12%*0.4
= 9% + 4.8% = 13.8%
Standard deviation of portfolio = square root of variance
= √ stdA²wa² + stadB²wb² + 2wawbcorrAB
= √(24%*0.6)² +(14%*0.4)² + 2*0.6*0.4*1.27
= √207.36% + 31.36% + 0.6096
= √2.9968
= 1.73
= 173.11%
Explanation:
Im not completely sure bc i dont see anything other than letters so im gonna say B
The correct statement among the given is 'cost of equity is always equal to or greater than the cost of debt'
.
Option-c
<u>Explanation:
</u>
Debt on assets which are less likely to lose is secured more uncertainty leads to lower returns, hence lower costs. The risk of loss to equity holders also remains greater and not even assured against any collateral. In comparison to higher risk equity holders foresee higher returns.
This is why debt costs are higher. Such high risk will lead to higher equity costs than debt costs. To investors, equity costs would be returned on equity investment, and debt costs would be made as part of debt investment.
Answer:
See Explanation
Explanation:
Given
The following details are omitted from the question
--- Price of the Shoes
--- Spent on dancing
--- Budget on shoe and dancing
Solving (a): Her budget line
First, we determine her budget equation (B).
This is calculated by:
This gives:
Divide through by 50
--- The budget equation
<em>See attachment for the budget line equation</em>
Solving (a): Optimal Consumption Bundle Point
First, we determine the marginal rate of substitution (MRS) using:
This implies that:
Cross Multiply
Divide by 2
Substitute T for S in the budget equation
Recall that:
So, the point if optimal consumption bundle is (5,5)
<em>See attachment for point R</em>
Answer:
b) Component
Explanation:
Since in the question it is mentioned that the neha has written a report in which the profits of three fashion design houses could be compared
So in this situation, the component organizational method could help for knowing the strategic and the operational information so that it would be easy for comparing the profits between these three fashion houses
Therefore the option b is correct
