Answer: Provides a risk return trade off in which risk is measured in terms of beta (A)
Explanation:
The Capital Asset Pricing Model (CAPM) describes the relationship that exist between systematic risk and the expected return for assets, particularly stocks. The Capital Asset Pricing Model is widely used in finance for pricing risky securities and also for generating expected returns for an asset given the cost of capital and the risk of those assets.
The Capital Asset Pricing Model Formula is:
Expected Return= Risk-Free Rate+Beta( Market Return – Risk Free Rate).
For example, if the risk free rate is 10%, the market return is 15%, and the stock's beta is 3, then the expected return on the stock would be 25%
= 10% + 3 (15% – 10%)
= 10% + 3(5%)
= 10% + 15%
= 25%
Answer:
A group of people who make decisions that determine the future of a company.
Explanation:
Board of Directors are basically the ones calling all the shots in a company. They decide all the major decisions relating to their business and it could affect every employee and employer of the company. They can decide anything from who gets fired and who stays on their team to new ways to produce the product that they sell.
Hope this helps.
Answer
Price elasticiy of demand for business travelers: -0.16
Price elasticity of demand for vacationers: -0.29
Explanation:
To find the price elasticy of demand (PED) using the midpoint method, we use the following formula:
![PED = \frac{(Q2-Q1)/[(Q2+Q1)/2]}{(P2-P1)/[(P2+P1/2]}](https://tex.z-dn.net/?f=PED%20%3D%20%5Cfrac%7B%28Q2-Q1%29%2F%5B%28Q2%2BQ1%29%2F2%5D%7D%7B%28P2-P1%29%2F%5B%28P2%2BP1%2F2%5D%7D)
Where Q2 and P2 are the new quantity demanded and new price respectively, and Q1 and P1 are the old quantity demanded and price.
Plugging the amounts into the formula we obtain the results of the answer.
Because both results are in absolute value less than one (0.16 and 0.29), we can say that the PED of tickets, for both vacationers and Business traveleres, is relatively inelastic. (Demand falls less in proportion to the change in price).
Answer:
Related diversification
Explanation:
Related diversification
As the name indicate related diversification is related to expansion of business in the same field to which it is currently working. This can be explained by one example. If any corporation are in a business of making computer parts and the very same corporation expand their business by making related articles like calculator, smart watch etc. These all are come in the related diversification.