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3 years ago

The constant growth model assumes which of the following?

1 answer:

4 0

The answer would be letter C, because the growth model promotes a rise or a growth in development. In which, it will create the stocks to be efficiently priced as time goes by for it is a requirement in terms of developing or having stocks to rise up in the contribution of the company. Executive stocks are not always available, privately held information does not follow on the relationship of the model and there is a restricted stock.

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You currently own shares in Buckeye Mutual Fund (BMF). Your broker calls and recommends buying shares in a small-capitalization

GarryVolchara [31]

Answer:

Option D is the correct option

Explanation:

To find the optimal fund to combine with risk free rate of return, we will use Coefficient of variation,

Coefficient of variation(CoV) = Standard Deviation/Expected Return

CoV of Buckeye = 14%/20% = 0.7

CoV of Wolverine = 11%/12% = 0.9167

So, higher the CoV higher the risk, we will take Buckeye to combine with Risk Free Return.

Hence, Option A

- Required target return of portfolio = 22%

Risk Free return = 8%

Buckeye Return = 20%

Let the weight of Buckeye be X ,& weight of risk free be (1-X)

Required return = (WRF)*(RRF) + (WB)*(RB)

22 = (1-X)(8) + (X)(20)

22 = 8-8X + 20X

14 = 12X

X = 1.17

SO, weight of Buckeye is 1.17 or 117%

while weight of Risk free is -0.17 (1-1.17) or -17%

Hence, ans is OPTION D

7 0

2 years ago

The two main purposes of a business plan are: a. to provide a document to keep employees focused and to seek outside funding. b.

Free_Kalibri [48]

Answer: Option A

Explanation: In simple words, business plan refers to an outline of framework that guides an organisation regarding its operations in future.

Business plan helps the organisation and its employees to set the chain of activities they need to perform for achieving their goals. Business plans also helps to determine the amount of capital needed to finance the projects that further helps the organisation to seek outside funding.

Hence from the above we can conclude that the correct option is A.

8 0

3 years ago

When a financial institution provides a standardized financial product such as a mortgage, it is:________

Rufina [12.5K]

When a financial institution supplies a standardized financial product such as a mortgage, it is<u>: reducing transaction costs.</u>

<h3>What is an institution that manages and accommodates a nation's finances?</h3>

A central bank is a financial institution that is accountable for overseeing the monetary system and policy of a nation or group of nations, controlling its money supply, and setting interest rates.

<h3>Who uses financial institutions?</h3>

Almost everyone maintains a protection or checking account, uses debit or credit cards, or needs a loan. Online banking is an electronic way to view account training and pay bills via the Internet and an institution's website.

To learn more about financial institution ,refer

brainly.com/question/9297059

#SPJ4

6 0

1 year ago

Agan Interior Design provides home and office decorating assistance to its customers. In normal operation, an average of 2.5 cus

Phantasy [73]

Answer:

A) Single-server single-phase model (M/M/1).

$\lambda=2.5 \,customers/hour\\\\\mu=6\,customers/hour$

B) The goal is not met, as the average time waiting for service is 5.56 minutes.

C) The new mean service rate is 7.5 customers/hour.

In this case, the average time waiting for service is 4 minutes, so the goal is met.

Explanation:

A) This situation can be modeled as a single-server single-phase model (M/M/1).

The mean arrival rate is 2.5 customers per hour.

$\lambda=2.5 \,customer/h$

The mean service rate is 6 customers per hour, calculated as:

$\mu=\frac{60\, min/h}{10 \,min/customer}=6\, customer/h$

B) The average waiting time for a customer can be expressed as:

$W_q=\frac{\lambda}{\mu}\frac{1}{\mu-\lambda} =\frac{2.5}{6}\frac{1}{6-2.5} =0.417*0.222=0.093\,hours\\\\W_q=0.093\,hours*(60min/h)=5.56 \,min$

The average waiting time is 5.56 minutes, so it is more than the goal of 5 minutes.

C) If the average time spent per customer to 8 minutes, the mean service rate becomes

$\mu=\frac{60\, min/h}{8 \,min/customer}=7.5\, customer/h$

An the average waiting time for the service now becomes:

$W_q=\frac{\lambda}{\mu}\frac{1}{\mu-\lambda} =\frac{2.5}{7.5}\frac{1}{7.5-2.5} =0.333*0.2=0.067\,hours\\\\W_q=0.067\,hours*(60min/h)=4 \,min$

The average time is now 4 minutes, so the goal is achieved.

6 0

3 years ago

An advertising agency conducted a research to analyze the effects of advertising on the buying behavior of consumers. It was fou

Feliz [49]

Answer:

There is a positive linear relationship between the frequency of advertising and the sales of the advertised product.

Explanation:

A linear relationship is stablished between 2 quantitative variables that have constant proportionality. In this case, the variables are directly proportional to eachother as they move in the same direction. In addition, they are both increasing. So, we can conclude these variables have a positive linear relationship.

8 0

3 years ago