Answer:
a) Informational
Explanation:
The company is using informational appeal in its advertisement to convince the buyers that they need the product and shows how it works. . This type of appeal informs customers of the features, quality and benefits of a product. The demonstration of how the blades work helps the potential customers to make a rational decision as it it portrays that the blades' function of the providing the closest shave is what they need.
They benefit producers and hurt consumers
Answer: B
Explanation: I work for a bank.
Answer:
=> fraction of the portfolio that should be allocated to T-bills = 0.4482 = 44.82%.
=> fraction to equity = 0.5518 = 55.18%.
Explanation:
So, in this question or problem we are given the following parameters or data or information which are; that the utility function is U = E(r) – 0.5 × Aσ2 and the risk-aversion coefficient is A = 4.4.
The fraction of the portfolio that should be allocated to T-bills and its equivalent fraction to equity can be calculated by using the formula below;
The first step is to determine or Calculate the value of fraction to equity.
Hence, the fraction to equity = risk premium/(market standard deviation)^2 - risk aversion.
= 8.10% ÷ [(20.48%)^2 × 3.5 = 0.5518.
Therefore, the value for fraction of the portfolio that should be allocated to T-bills = 1 - fraction to equity = 1 - 0.5518 =0.4482 .
