Answer:
a. an express warranty.
Explanation:
An express warranty -
It is the insurity given by the seller in order to give the replacement or repairs for any of the faulty product or services , within a particular time frame after purchasing the product , is known as an express warranty .
It helps to make sure about the product the buyer have purchased and for any repairs in the future .
Hence , from the question , the example shown is about an express warranty .
Answer:
- a. What is the portfolio weight of each stock?
Stock J 0,5047
Stock K 0,4953
- b. What is the expected return of your portfolio?
Stock J 6,69%
Stock K 5,25%
Portfolio : 11,94%
Explanation:
To find the Beta that equals to market we need to know how much is x (weight of each stock in the portfolio) with an equation of one variable that equals to 1.
Portoflio with the same risk as the market means a beta of 1,00
1,23 (x) + 0,84 (1-x) = 1 Stock J = 0,4103
1,23x + 0,84 - 0,84x = 1 Stock K = 0,5897
1,23x - 0,84x = 0,16
0,39x = 0,16
x = 0,16/0,39
x = 0,4103
The expected return of the portfolio it's defined by the weight of each stock and the expected return.
Stock J 13,25% 0,5047 6,69%
Stock K 10,60% 0,4953 5,25%
Portfolio 1,00 11,94%
Answer:
c. 9.21%
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)
For stock A
12% = 4.75% + 1.30 × market risk premium
12% - 4.75% = 1.30 × market risk premium
7.25% = 1.30 × market risk premium
So, the market risk premium = 5.58%
For Stock B, required rate of return would be
= 4.75% + 0.80 × 5.58%
= 4.75% + 4.464%
= 9.214%
Answer:
The correct answer is letter "C": finding ways to lessen the harm on our environment.
Explanation:
Greening implies analyzing what factors of businesses are harmful to the environment where the firm carries out its operations so that impact can be reduced in favor of the natural atmosphere. To achieve that goal, companies take several steps such as <em>reducing power and water service usage, recycling </em>or <em>planting trees</em> in affected environments.
