Answer:
The answer is 8.55 percent
Explanation:
This is Capital Assets Pricing Model(CAPM) shows the relationship between undiversified risk(systemai risk) and the expected rate of return for shareholders. It is used to determine the cost of equity. This model is widely used in finance.
The formula is: Risk free rate of return + beta(market return - risk free rate of return ).
Note that risk free rate of return - market return is known as risk premium i.e the compensation for taking risk.
Risk free rate of return - 4 percent
market return - 11 percent
Beta - 0.65
4 + 0.65(11 - 4)
4 + 0.65(7)
4 + 4.55
=8.55 percent
<span>While a familiar benchmark, the number of people who know of Big Macs are not comparable to those who buy them regularly. Thus, comparing a not-as-commonly purchased product with living essentials (such as staple foods and toiletries) provides a level of disconnect that hinders the very comparison it is intended to support.</span>
Answer:
An example of production under the command system in the United States is that of the production of roads and passable roads throughout the nation. In this case, it is the production of a public service, and as such it is controlled by the government in all stages of its production: from the identification of the need, through the tender, the construction authorization and the supervision of the results, everything is controlled by the government. This implies that individuals or private companies cannot by their own initiative create this type of road, but rather depend exclusively on the will of the government.
The appropriate response is Daily Compounding. Progressive accrual is the expansion important to the key total of an advance or store, or as it were, enthusiasm on intrigue. It is the aftereffect of reinvesting premium, instead of paying it out, so that enthusiasm for the following time frame is then earned on the chief total in addition to the already gathered premium.
Answer:
Option (B) is correct.
Explanation:
1 pound = $1.60
1 pound = $1.50
So, there is a depreciation in the value of pound relative to the dollar and appreciation in the value of dollar relative to the pound.
Now, suppose a resident of united states purchase some quantity of goods(say, 20 shirts) from the seller in United kingdom.
Price of each shirt = 2 pounds
Hence,
Before the change in exchange rate, then the buyer have to pay in dollars:
= 20 × (2 × $1.60)
= 20 × 3.2
= $64
After the change in exchange rate, then the buyer have to pay in dollars:
= 20 × (2 × $1.50)
= 20 × 3
= $60
Hence, the amount paid by the resident of united states reduced because of the fall in exchange rate. Now, they have to pay less for the same amount of commodities. This shows that there is an appreciation in the currency of US relative to UK.
