Answer:
B) 13.4%
Explanation:
In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below
Expected rate of return = Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)
The (Market rate of return - Risk-free rate of return) is also known as market risk premium
So, the expected return on portfolio A would be
= Risk free-rate of return + (Beta of factor 1 × risk premium + Beta of factor 2 × risk premium + Beta of factor 2 × risk premium)
= 3% + (0.8 × 3% + 1.1 × 5% + 1.25 × 2%)
= 3% + 2.4% + 5.5% + 2.5%
= 13.40%
CRM systems are designed to help firms manage their relationships with their customers.
CRM - Customer relationship management allows a company to track and manage current and future customers. Through a CRM they can track their sales and even improve them, by focusing on their relationships with their customers.
Answer:
The company's net operating income for May is $30,500
Explanation:
For computing the net operating income, first, we have to compute the contribution by applying the contribution margin formula. The formula is shown below:
Contribution margin = (Contribution ÷ Sales)
75% = (Contribution ÷ $114,000)
So contribution would be equal to
= $114,000 × 75%
= $85,500
And the fixed expenses are $55,000
So, the net operating income equal to
= Contribution - fixed expenses
= $85,500 - $55,000
= $30,500
Based on the way the Lerner index is calculated, higher prices would increase the Lerner index.
<h3>What is the Lerner Index?</h3>
It is a measure that allows for the calculation of marker power in a certain industry.
It is calculated by the formula:
= (Price - Marginal cost) / Price
If the price increases, the numerator will increase which means that the Lerner index increases.
In conclusion, option D is correct.
Find out more on indexes at brainly.com/question/824647.