Answer:
expected return is 15.8%
portfolio beta is 94.5%
Explanation:
a. EXPECTED RETURN: to calculate the the expected return of, we simply multiply each of the stock percentage by its expected return and then sum it up. thus we have
0.2×0.16 + 0.3×0.14 + 0.15×0.2 + 0.25×0.12 + 0.1×0.24= 0.158
Multiply the result by 100% yields 15.8%
B. PORTFOLIO BETA: to calculate the portfolio beta, we simply multiply the weighted average of the stock percentage by the portfolio beta. thus we have;
0.2×1 + 0.3×0.85 + 0.15×1.2 + 0.25×0.6 + 0.1×1.6= 0.945
multiply the result by 100% yields 94.5%
Answer: B) False
Explanation: Management by objectives (MBO) is a type management which it's main goal is to improve the performance of an organization by means of stating the objectives which of the organisation and is usually agreed on by both the management and the employees. In the case above some objective have being put in place by Candice using MBO method, which she later discovered that some department are not complying with. This would affect the results of the MBO program she introduced, for an MBO to yield improve results it needs full cooperation from employees.
Answer:
Smart display campaign
Explanation:
This is an automated program that is highly effective in locating old and new customers , create a capturing advertisement on its own and also provide the right bids.
In other words , it automates the process of bidding ,targeting and creating advert.
Even though the initial set up can be costly , but it reduces the effort of advertisers to the minimum as the whole process is programmed to self controlling.
As such , it is recommended for Sierra's business.
A, B, and C would best demonstrate the tasks.
Answer:
c. not affect the bond's duration.
Explanation:
The bond duration measures the sensitivity of a bond's price to change in the interest rate. It is a linear measure of those years in which the repayment of the principal is due. the change in interest rate does not affect the duration of the bond.
On the other hand decrease in interest rate would increase the bond's PV and Price of the bond as well.
Payment frequency would not change with the decrease interest rate.
The Coupon rate will also remain the same whether the interest rate increases or decreases.