Explanation:
service life refers to the time an asset will be used by a company and physical life refers to how long the asset will last.
Answer:
1.35
Explanation:
Systemic risk is measured by beta. The higher beta is, the higher the systemic risk and the higher the compensation demanded for by investors
According to the capital asset price model: Expected rate of return = risk free + beta x (market rate of return - risk free rate of return)
14.48 = 3.42 + b(11.6 - 3.42)
14.48 = 3.42 + b8.18
14.48 - 3.42 = 8.18b
11.06/8.18 = 1.35
It gives the producers an opportunity to grow and develop while implementing any innovation that they believe will pay off since it's based on supply and demand. Things are profit motivated which makes it easier for produced to earn money as long as they provide what the people want.
The name of the shipping company whose ferry sank in February 2, 2012 off the Pappua coast is RABAUL SHIPPING.
The ship was a passenger ferry, which was built in Japan in 1983 and was taken to New guinea in 1998. The ship was carrying about 500 passengers and it was only about half of them who were rescued.
Answer:
True
Explanation:
The reason is that the straight line equation is used to illustrate the relation between the rate of return and the beta factor and is given as under:
Y = a + bX
Here
a = Rf
B = Risk premium = Rm - Rf
X = Beta Factor
So this means the security market line is the graphical presentation of capital asset pricing model and illustrates why the increase in beta factor increases the required rate of return, the reason is that the the overall required return Y of the investment will start increasing with the increase in the beta factor.
So the statement is true.