Answer:
Since the expected return and required return are different for both Stock X and Z, we say that they are not correctly priced
Explanation:
<em>To determine whether or not the stocks are correctly priced ,</em>
<em>we have to compare the r</em><em>equired return</em><em> and the </em><em>expected return on each of them.</em>
Required return = Rf +β (Rm-Rf)
Note that Rm-Rf is also known as market risk premium
<em>Stock Y Stock Z</em>
<em>Required return </em> 2.4% + 1.2(7.2%) 2.4% + 0.8(7.2%)
= 11% = 8.2%
<em>Expected return</em> <em>12.1% 7.85%</em>
Since the expected return and required return are different for both Stock X and Z, we say that they are not correctly priced
Answer:
Office chief
Explanation:
Because he is the one to tell the people to come in or come out
Answer: Low risk taking culture
Explanation:
Organisational culture includes the behaviour, beliefs, value and principles in which an organisation operates on. It's entails the way business are done, decisions are made etc.
Low risk taking is an organisation culture aimed at minimising risks. Recommendations and Decisions are based on facts and genuine data not on abstract and unreal thoughts with decisions fully documented.
Answer:
The company will make monthly payments of $299.71 for three years.
This means a total payments of $10,789.60 after the 36th month with an interest charge of $164.60.
Explanation:
a) Data and Calculations:
Cost of new machine = $12,500
Down Payment 15% = 1,875
Amount financed through a credit union = $10,625
Interest rate charged by the credit union = 1% per year compounded monthly.
From an online finance calculator:
Monthly Payment = $299.71
Sum of all periodic payments = $10,789.60
Total Interest = $164.60
