Answer:
Risk-free rate decreases
Explanation:
The CAPM formula for calculating cost of equity requires one to know the value of 3 pieces of information only:
1. the market rate of return,
2. the beta value
3. the risk-free rate.
Ra = Rrf + [Ba∗(Rm−Rrf)]
where:
Ra=Cost of Equity
Rrf = Risk-Free Rate
Ba = Beta
Rm=Market Rate of Return
From the formula
Ra = Rrf + [1.2∗(Rm−Rrf)]
Ra = Rrf + 1.2Rm - 1.2Rrf
From Ra = 1.2Rm -0.2Rrf
From the expression above, it can be seen that the lower the value of Rrf (Risk-Free rate), the higher the value of Ra.
Answer: A company is classified as simple business when revenues generated by the dominant business are greater than 95%.
Explanation: The advantage of having a company where its profits come from a single type of activity, is that they concentrate all their forces and can have a better competitive advantage than in the opposite case, activities are diversified. Example: A company dedicated to the manufacture of private vehicles would be simple if it only executes the manufacture of vehicles and diversified when it sells in addition to private vehicles, trucks and motorcycles.
(C) Direct marketing.
<h3>
What is telemarketing?</h3>
- Telemarketing is a form of direct marketing in which a salesman calls potential clients to ask them to purchase goods or services.
- This can be done over the phone, during a prearranged in-person meeting, or by web conferencing.
<h3>
What is microtargeting?</h3>
- Direct marketing datamining techniques that use predictive market segmentation are part of microtargeting, which is frequently used by political parties and election campaigns.
<h3>What is direct marketing?</h3>
- The act of presenting an offer directly to a target client and providing them with a way to respond immediately is known as direct marketing.
- It is sometimes referred to as direct response marketing among practitioners.
- Advertising, in contrast, is a form of mass messaging.
<h3>What is the sharing economy?</h3>
- The sharing economy is a socioeconomic structure based on capitalism that emphasizes resource sharing.
- It frequently involves a different method of buying goods and services than the conventional business model, which involves employers hiring workers to create commodities that are then sold to customers.
Therefore, the correct answer is (C) Direct marketing.
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Answer:
<h2>The answer in this case would be option a. or feel more wealthy, so the quantity of goods and services demanded rises. </h2>
Explanation:
- As a common consumer psychology,as the price of any good or service decreases,any rational consumer or buyer feels more wealthy compared to before as the purchasing power of the consumers or buyers pertaining to that particular good or services has increased,everything else held constant.
- Purchasing power of any good or service is generally reflected by the purchasing or buying capacity of that good or service with the amount of money that a consumer or buyer has at his or her disposal.
- As the price of any good or service decreases,it becomes cheaper to the consumer,again everything else considering constant.In other words,it increases the purchasing power or capacity of the consumers or buyers.Therefore,the typical consumer or buyer will prefer or demand more of that particular good or service thereby,increasing its quantity demanded due to a price reduction.
Answer:
D: a list of the actual securities in the portfolio
Explanation:
Under Employee Retirement Income Security Act of 1974 (ERISA) interpretations, the details of risk, time horizon, target asset mix, investment goals and objectives, and guidelines for review are among the items which must be disclosed in the statement. A list of the specific investments in the plan is not a required disclosure.
