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Serjik [45]
3 years ago
15

Consider the following information: Portfolio Expected Return Beta Risk-free 5 % 0 Market 11.2 1.0 A 9.2 1.9 a. Calculate the re

turn predicted by CAPM for a portfolio with a beta of 1.9. (Round your answer to 2 decimal places.) b. What is the alpha of portfolio A. (Negative value should be indicated by a minus sign. Round your answer to 2 decimal places.) c. If the simple CAPM is valid, is the situation above possible? Yes No
Business
1 answer:
tatiyna3 years ago
6 0

Answer:

The calculations are shown below:

Explanation:

The calculations are shown below:

a. The expected rate of return is  

Return = Risk free return + Beta × (Market return - risk free return)

= 5% + 1.9 ×  (11.20% - 5%)

= 5% + 11.78%

= 16.78%

b. Now the alpha is

Alpha = Actual rate of return - Expected rate of return

         = 9.2% - 16.78%

         = - 7.58%

c. No , the CAPM is not valid as the expected rate of return is more than the actual rate of return

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Answer:

The answer is functional structure

Explanation:

The type of structure in this question is functional structure.

Functional structure divides the organization into different functions based on their specialization. Functional departments are production department, accounting department, marketing department etc. Each functional department has a line manager or head of department which reports to CEO.

This structure is the most common.

And its advantages are that it increases specialization and also productivity.

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3 years ago
50. Regarding product mix, brand name is a part of A. place. B. price. C. product. D. promotion.
vagabundo [1.1K]

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3 years ago
The defect rate for your product has historically been about 2.00​%.
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Answer:

UCL= 0.044

LCL = -0.004

Explanation:

See attached picture

8 0
3 years ago
Provide an example of a clothing store using “non-price” competition.
Art [367]

Answer:

Examples are such like loyalty programs, subsidized delivery, unique selling points, brand recognition, ethical and/or charitable concerns, after-sales service, positive feedback reviews, marketing campaigns and many more.

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2 years ago
The set of marketing tools a firm uses to implement its marketing strategy is called the ________.
Naily [24]

Answer:

<u>Marketing mix.</u>

Explanation:

Marketing mix is ​​defined as a set of elements that make up marketing actions in an organization. According to Kotler, the purpose of the marketing mix is ​​to help the company achieve its goals in the market by using a set of marketing tools.

There are several models developed to represent the marketing mix, but the most used by organizations is represented by four essential pillars for the development of any marketing strategy, which are the 4P's of marketing: <u>product, price, place and promotion</u>. For each variable there are distinct and relevant activities:

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