Answer
The answer and procedures of the exercise are attached in a microsoft excel document.
Explanation
Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.
Answer:
(a) 13,3%
(b) 18,1%
Explanation:
To calculate the required rate of return for an assets it's necessary to use the CAPM (Capital Asset Pricing Model) model which considers these variables to estimate the required return of an assets, the model states the next:
ER = Rf + Bix( ERm - Rf )
ER : Expected Return of Investment
Rf : Risk-Free Rate
Bi : Beta of the Investment
ERm : Expected Return of the Market
(Erm-Rf) : Market Risk Premium
It tries to explain the relationship between the systematic risk ((Erm-Rf Market Risk Premium) of the market and the expected returns for assets.
The following needs to be done to prevent hackers from breaking in:
1. Strong antivirus software needs to be installed on all machines that employees access to do their day-to day activities.
2. A firewall that detects and prevents any unauthorized access to sensitive client information.
3. A Virtual private network (VPN) tunnel that will only allow authorized people access to sensitive data. Employees would be given a VPN access separately to make sure that information privacy is protected at all times.
4. With regard to physical security, the business should have a 24/7 security guards to make sure that the facility is secure round the clock.
5. Employees should be given training on basic security measures that are installed so that they adhere to these norms.
Answer:
c. Cost of building fences.
Explanation:
The cost of production encompasses the money spend as well as the time to produce a commodity. For example, if a person spends $15 to make a juice cup and invest 1 hour to make so the total cost of production is $15 and the time invested by the producer. Thus, option "c" is correct.