Answer:
a. True
Explanation:
from the CAPM formula we can derive the statemeent as true.
risk free = 0.05
market rate = 0.12
premium market = (market rate - risk free) 0.07
beta(non diversifiable risk) = 0
Ke 0.05000
As the beta multiplies the difference between the market rate and risk-free rate a beta of zero will nulify the second part of the equation leaving only the risk-free rate. This means the portfolio is not expose to volatility
Answer:
True
Explanation:
The journal entries are the recording of the transactions in which the one account is debited and another account is credited along with the description and the date.
If we take the example.
Rent is paid for cash for $10,000
So, the journal entry would be
Rent expense A/c Dr $10,000
To Cash A/c $10,000
(Being rent is paid for cash is recorded)
So, the given statement is true
Answer: Market allocates goods effectively.
Explanation: Effective market allocation is the economic market interaction discussed in this case study. As there was a storm and the power lines got down it was obvious that the demand for the batteries and flashlights will increase and the stock became insufficient but the market forces came into action leading to increase in supply and restoring demand and supply to equilibrium level .
Answer:
The answer is: Vernon's Product Life Cycle theory
Explanation:
Product Life Cycle theory was developed to describe the observed pattern of the international trade. This theory was given by Raymond Vernon and the Product Life Cycle has four stages:
1. The introduction stage: Introducing or launching new product in the local market.
2. The growth stage: Strong demand of products and increase in the sales, which increases the profits. The product are exported to other high-income developed countries.
3. The maturity stage: The production is moved to the developed countries.
4. The decline stage: The production of the products begins moves in the low-wage developing countries.
The budget must be these five things to be successful..
Must be realistic.
Should be flexible.
Should be evaluated regularly.
Must be well planned and clearly communicated.
<span>Should have a financial format.
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Hope I helped!
