Answer:
C. The Fed intends to reduce inflation, which occurs if real GDP is greater than potential GDP
Answer:
The stock is undervalued. As the required rate of return (6.5%) on market is less than the actual return (7%), the stock is said to be undervalued as it provides an actual return greater than the required rate of return.
Explanation:
To check if a stock is over valued, undervalued or correctly valued, we simply compare the required rate of return on a stock as measured by CAPM with the actual return on the stock.
We can calculate the required rate of return using CAPM equation. The formula for required rate of return under CAPM is,
r = rRf + Beta * (rM - rRF)
Where,
- rRf is the risk free rate
- rM is the return on market
r = 0.05 + 0.5 * (0.08 - 0.05)
r = 0.065 or 6.5%
As the required rate of return on market is less than the actual return, the stock is said to be undervalued as it provides an actual return greater than the required rate of return.
From the illustrated description of Charlie’s job in his company, it is clear that Charlie’s role in the company is working as a public relations manager.
A public relations manager is responsible for maintaining a favorable image of their clients, be it individuals, or in Charlie’s case, a company. This include dealing with the media, holding press conferences, and writing press releases.
Answer: I hate Trump and would make him eat tortilla chip vertically :/
Explanation:
Answer:
The correct answer is: identifying the problem or opportunity.
Explanation:
Identifying the problem or opportunity is the first step in the rational decision-making process. To know which direction the firm is going to take, the main issue must be pointed out so based on the possible solutions the company can provide, the first steps can be taken towards achieving the solution.
