Answer:
=> fraction of the portfolio that should be allocated to T-bills = 0.4482 = 44.82%.
=> fraction to equity = 0.5518 = 55.18%.
Explanation:
So, in this question or problem we are given the following parameters or data or information which are; that the utility function is U = E(r) – 0.5 × Aσ2 and the risk-aversion coefficient is A = 4.4.
The fraction of the portfolio that should be allocated to T-bills and its equivalent fraction to equity can be calculated by using the formula below;
The first step is to determine or Calculate the value of fraction to equity.
Hence, the fraction to equity = risk premium/(market standard deviation)^2 - risk aversion.
= 8.10% ÷ [(20.48%)^2 × 3.5 = 0.5518.
Therefore, the value for fraction of the portfolio that should be allocated to T-bills = 1 - fraction to equity = 1 - 0.5518 =0.4482 .
Potential competition exists
Answer:
By mentioning to be "a magical world where your dreams come true", Disney seeks to position its brand by appealing to the illusion of its youngest consumers, who believe and enjoy that magical world as they consider it to be real. In turn, it also targets a more adult audience, the parents of those children and even young adults who remember their childhood, and seek through Disney to return to that magical world far from the problems of daily life. Thus, through empathy and the generation of nostalgia, Disney captures a market that is receptive to its products due to the sentimentality they imply.
Answer:
c.used by the department
Explanation:
Since in the question it is mentioned that Miller Safety Equipment uses multiple production department rates so that it applied the overhead to products.
And according to that the allocation of support department cost to production
Here, the multiple production department rates are used so the support activity should be only used by the department.
Answer:
a) process
Explanation:
The P's are Product, Pricing, Place, Promotion, People, Process and Physical Evidence and for Traditional Marketing is Product, Pricing, Place and Promotion
