The market price of a security is $50. Its expected rate of return is 14%, and the market price of the security is mathematically given as
MR=27.368
<h3>What will be the market price of the security if its correlation coefficient with the market portfolio doubles?</h3>
Generally, the equation for expected rate return is mathematically given as
RR=(Rf+beta*(Rm-Rf)
Therefore
RR=(Rf+beta*(Rm-Rf)
Beta= (13-7)/8
Beta=0.75
In conclusion, the market price of a security
MR=DPs/RR
Where
Po=DPS/RR'
DPS=40*0.13
DPS=$5.23
and
RR=&+1.5*8
RR=19%
Hence
MR=$5.23/0.19
MR=27.368
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Answer: See explanation
Explanation:
The formula to use here will be:
required rate = risk free rate + beta × (market return - risk free rate).
where,
risk free rate = 5%
beta =0.20.
market return = -30%.
Therefore,
required return = 5% + 0.20 × (-30% + -5%)
= 5% + 0.2(-35%)
= 5% - 7%
= -2%
Therefore, the return on portfolio should have been -2% but the portfolio manager produced a return of −10%
Since -10% is lower than -2%, we can deduce that the claim of the manager is wrong.
Answer:
The answer is autonomy (Option D)
Explanation:
Autonomy in human resource management refers to the level or degree of discretion and freedom which an employee is permitted to exercise when performing his/her job. In other words, it means granting employees the freedom on how to approach work.
A manager or superior like Margie (in the question) who gives employees autonomy simply gives minimal instruction on what needs to be achieved but allows the employees to go about the job in ways that best suit them.
Answer:
The U.S. economy had emerged from the great recession in better shape than that any other developed nation.
Answer:
Bloomington Inc.
Indication of Liability Amount on the Balance Sheet at December 31, 2019:
Situation Liability Amount
a. $220,000
b. $0
c. $3,100
d. $0
Explanation:
For Bloomington to recognize a liability or record it in its financial statements, the probability that an outflow of economic resources will occur in the future must be established. Bloomington must also be able to reliably measure the amount of the liability. These two conditions are satisfied in situations A and C. For situation B, the contract is not in force as at December 31, 2019, since the drill press will be purchased in January, 2020. Lastly, for situation D, the amount of the profit-sharing bonus cannot be reasonably and reliably ascertained because the amount to apply the 5% is not clear or known.
