Answer:
E.In equilibrium, the expected return on Stock A will be greater than that on B.
Explanation:Beta is a measure used in the stock marketing to describe how volatile a stock is compared the the overall market. A stock with a Beta greater than one signifies that a share is more volatile than the overall market, while a Beta less than one signifies that the market is more volatile than the stock.
IN EQUILIBRIUM, STOCK A WITH A BETA GREATER THAN ONE WILL BE MORE PROFITABLE AND GENERATE MORE INCOME THAN STOCK B WHICH HAS A LOWER BETA THAT IS LESS THAN ONE.
Answer: Achievable
Explanation:
Executives must have an achievable objective for their employees. An objective is achievable when employees feel that it is measurable and there is a realistic chance it will be fruitful.
An achievable objective will make employees work hard towards its accomplishment but an unachievable objective will make employees loose focus as they will direct their attention towards something else.
Answer:
=$15
Explanation:
An economist will consider the cost of the photo as the materials costs plus the opportunity cost of labor for Jessica. For Jessica, the opportunity cost of making the photo frame is the amount she would have earned working at the coffee shop. Therefore, the $10 she would have earned at the coffee shop is the labor cost of producing one photo frame.
The total cost of making one photo frame would be $5 plus $10.
i,e. $5 + $10 = $15
Profit from the photo frame = selling price - cost price
=$30- $15
=$15
Answer:
7.43%
Explanation:
Where the debt is publicly traded , the cost of debt is equal to the yield to maturity
Approximate yield to maturity = [coupon +(face value - market price )/ number of years to maturity ]/ [{face value + market price]/2]*100
Face value - 2000
Market price - 1905
years to maturity= 30 years
Coupon =( 6.9%*2000)/ 2 = 69
Workings
[69 + (2000-1905)/30] / [(2000+1905]/2 *100)
([69+3.17]/[(3905]/2*100)
(72.17/1952) * 100 = 3.70
Annual yield = 3.7*2= 7.4%
7.4 % being an approximate yield value , the closest option is 7.43%
Answer:
5.39%
Explanation:
Given that,
Bond that pays interest annually yields a rate of return = 7.50 percent
Inflation rate for the same period = 2 percent
Real rate = [(1 + nominal rate) ÷ (1 + inflation rate)] - 1
Real rate = [(1 + 0.0750) ÷ (1 + 0.02)] - 1
= (1.075 ÷ 1.02) - 1
= 1.0539 - 1
= 0.0539 or 5.39%
Therefore, the real rate of return on this bond is 5.39%.
