The market price of a security is $50. Its expected rate of return is 14%, and the market price of the security is mathematically given as
MR=27.368
<h3>What will be the market price of the security if its correlation coefficient with the market portfolio doubles?</h3>
Generally, the equation for expected rate return is mathematically given as
RR=(Rf+beta*(Rm-Rf)
Therefore
RR=(Rf+beta*(Rm-Rf)
Beta= (13-7)/8
Beta=0.75
In conclusion, the market price of a security
MR=DPs/RR
Where
Po=DPS/RR'
DPS=40*0.13
DPS=$5.23
and
RR=&+1.5*8
RR=19%
Hence
MR=$5.23/0.19
MR=27.368
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Answer:
Explanation:
A. Supply stays the same, demand decreases since restaurants are normal goods. As a result, the equilibrium price and the equilibrium quantity will go down.
B. In the short run, the existing firms reduce their output causing Q* to fall. In the long run, as firms exit, Q* falls even further.
C. An individual firm may produce in the short run, but exit from the industry in the long run. As a result, the firm will decrease its quantity produced up to 0. Therefore, in the long run the output of an individual firm may change drastically comparing with the short run.
Answer:
A. They are owned and controlled by the federal government.
Explanation:
I think it is A
Answer:
c
Explanation:
because why wouldnt u pay
Answer:
Contribution margin per unit= $21.6
Explanation:
Giving the following information:
Selling price per unit $34
Variable costs per unit:
Direct material $6
Direct manufacturing labor $2.40
Manufacturing overhead $0.80
Selling costs $3.20
<u>The contribution margin is calculated by deducting from the selling price all the variable components:</u>
Contribution margin per unit= selling price - total unitary variable cost
Contribution margin per unit= 34 - 6 - 2.4 - 0.8 - 3.2
Contribution margin per unit= $21.6