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slega [8]
3 years ago
13

The CAL formed from the optimal risky portfolio will be __________ to the efficient frontier of risky assets.

Business
1 answer:
Ne4ueva [31]3 years ago
3 0

Answer:

tangent

Explanation:

The Capital Allocation Line refers to a line that measures the assets profile with respect to risk plus reward and can be applied to determine the optimal portfolio.

The optimal portfolio involves both risk-free assets and an efficient portfolio of assets i.e to be riskier.

The optimal portfolio of risky assets should be at that point at which the capital allocation line is tangent to the efficient frontier.

This portfolio is desirable since CAL 's slope is the maximum, implying we get the maximum return for the additional unit added with respect to risk.

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6 0
3 years ago
If a company spends $20 million to install new footwear-making equipment with capacity to produce 1 million pairs of athletic fo
labwork [276]

Answer: 10% or $2,000,000

Explanation:

Seeing as no figures were produced, we will have to do this ourselves.

We will make assumptions which include the following,

Life of the equipment = 10 Years

Salvage value = 0

Those are our 2 assumptions.

In that case then,

The Annual Depreciation will be,

Depreciation = (Cost of equipment - Estimated salvage value) / Estimated useful life

= (20 - 0) / 10

= $2 million

Seeing as 2 million is,

= 2/20 * 100

= 10%

That would mean that annual depreciation costs at that facility will rise by $2 million or 10%.

If you need any clarification do react or comment.

3 0
3 years ago
Normal profit is the return to the entrepreneur when economic profits are zero. determined by subtracting implicit costs from to
diamong [38]

Normal profit is the return to the entrepreneur when the entire economic profits are equal to zero. Hence, the correct statement is Option A.

<h3>When the business earns normal profits?</h3>

A commercial enterprise may be in a state of normal profit while its economic income is equal to 0, that is why normal profit is also called “zero economic profit.” Normal profit takes place on the factor wherein all sources are being successfully used and could not be put to better use elsewhere.

Hence, Normal profit is the return to the entrepreneur when the entire economic profits are equal to zero. The correct statement is Option A.

learn more about Normal profit:

brainly.com/question/13800389

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5 0
2 years ago
A new technological breakthrough increases production for an industry and shifts the supply curve to the right. If the firm ____
Katyanochek1 [597]

Answer:

The correct answer is letter "C": produces products that are considered elastic.

Explanation:

Elasticity refers to the sensitivity of a good or service to reflect change in its supply or demand after a change in price. A product's supply is said to be elastic if the changes in the quantity supplied increases and it immediately determines a price in the price.

Thus, if for technological reasons the output of a company increases, considering that the product is elastic, the prices will increases which will provide the organization more revenue. That firm will be more than glad about the technological advance.

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3 years ago
What are six basic activities of business
Paraphin [41]
<span>Budgeting ...Accounting. ...Marketing. ...Sales. ...Hiring Employees. ...Customer Service.  Maybe!</span>
7 0
4 years ago
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