Answer:
The answer is option A) To reduce her risk of making a Type II error, she should Increase the number of local consumers she will sample
Explanation:
A type II error is sometimes called a beta error because it confirms an idea that should have been rejected, claiming the two observances are the same, even though they are different. A type II error is essentially a false positive.
A type II error can be reduced by making more stringent criteria for rejecting a null hypothesis such as:
- Increasing the the sample size used in the Test: this is a strategy used to increase the power of the test and reduce the error to a considerable amount.
- Increasing the significance level: choosing a higher level of significance is important for double checking and which increases accuracy.
Answer:
So since our Risk was "1.2 times" to the Risk of Market Hence Out Expected Return would also be 1.2 times.
Explanation:
Before Answering the Question , let us Understand some Important terms in simple language :
Market Excess Reture : it is basically that how much Market Return will be "Over & Above" Riskfree Rate
Beta : it shows that How much times is Risk of Our Stock in Comparison to that of Market . So We would be Expecting "that much times" Excess Return from that of "Market Excess Return"
?Now in Our Question it is Given that
Expected Excess Market Return (Rm - Rf) over next year = 11.9%
Beta of pur Stock = 1.2
\therefore Our Expected Excess Return over next year = Beta * Expected Excess Market Return
= 1.2 * 11.9%
= 14.28 %
Answer:
b. False
Explanation:
A convertible debenture can sell for more than its conversion value or less than its bond value.
Answer:
Beta is 0.85
Explanation:
The value of Beta can de derived from the CAPM formula of expected return
expected return=risk-free rate+Beta*market risk premium
expected return is 10.2%
risk-free rate is 4.10%
market risk premium is 7.2%
Beta is unknown
10.20%=4.10%+Beta*7.20%
10.20%-4.10%=Beta*7.20%
6.10%
==Beta*7.20%
Beta=6.10%
/7.20%
Beta= 0.85
Answer: c. Product differentiation
Explanation: Product differentiation attempts to distinguish a firm's products or services from that of competition. It is a marketing strategy that involves the creating and designing products so customers perceive them as different from competing products and as such can help create competitive advantage for the firm as well as building brand awareness.
