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.
Its annual compound yield to maturity (YTM) is $881.00
An annual compound hobby is calculated by multiplying the initial main amount by one plus the once-a-year hobby fee raised to the wide variety of compound durations minus one. A hobby may be compounded on any given frequency agenda, from continuous to every day to annually.
"12% hobby" approach that the hobby fee is 12% in keeping with year, compounded annually. "12% interest annual compound monthly" manner that the hobby charge is 12% in line with the year (no longer 12% consistent with month), compounded month-to-month. Consequently, the hobby price is 1% (12% / 12) in line with the month.
A compound hobby is the addition of a hobby to the principal sum of a mortgage or deposit, or in other phrases, interest on essential plus interest.
First, find YTM
N = 20
I = YTM
PV = -860
PMT = 50
FV = 1000
YTM = 6.245%
The price after 5 years is nothing but the future value of the bond after 5 years
N = 5
I = YTM = 6.245
PV = -860
PMT = 50
FV = $881
So the answer is $881.00
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Answer: $917 million
Explanation:
From the question, we are informed that the required reserve ratio is 12 percent and that the commercial banking system has $110 million in excess reserves.
Based on the above analysis, the maximum amount of money which the banking system could create will be:
= $110,000,000/12%
= $110,000,000/0.12
= $ 917,000,000
= $917 million
Given:
Old Price of book =P100
Let X= Change in quantity
Let Y= Change in Price (10%)
The formula for price elasticity
is:
Price
Elasticity = (% Change in Quantity) / (% Change in Price)
.50=X/Y
-.50=X/(10)
x/10=.50
X=.50(10)
X=5
Let Z=New
Quantity Demanded
Z=100+.05(100)
Z=100+5
Z=105
Let A=New
price
A= 100+.10(100)
A=100+10
A=110
New Total
revenue =Z(A)
=105*110
<span>=11,550</span>
Both a company placing emphasis on ethics and a company providing moral leadership