Answer:
a. 11.88%
b. -3.68%
Explanation:
Given that
Risk free rate = 6%
Beta = 1.4%
Market rate = 10.2%
Risk free rate = 6%
Alpha return = 8.2%
a. The computation of expected return of portfolio is given below:-
= Risk free rate + Beta (Market rate - Risk free rate)
= 6% + 1.4% (10.2% - 6%)
= 11.88%
b. The calculation of Alpha of portfolio is shown below:-
= Alpha return - Expected return
= 8.2% - 11.88%
= -3.68%
Answer:
D. €1.3333 = £1.00
Explanation:
Suppose you observe the following exchange rates: €1 = $1.50; £1 = $2.00.
That implies that the value of €1 is equivalent to 1.50/2.00 the value of £1, since €1 = $1.50; £1 = $2.00
Therefore the value of €1 = £0.75
Hence the value of £1 = €1 / £0.75 = €1.3333
The correct answer is choice A.
A business with only one owner is called a sole proprietorship. This owner has rights to all of the profits and does not have to share them with anyone.
The advantage of keeping your money in a savings account is that you can withdraw money whenever you want from your account.
<u>Explanation:</u>
Unlike the long term investments which are withdrawn only upon maturity.
The initial investment is also very low which is depending on the type of savings account., as compared to the long term investment.
People who need to frequently deposit or withdraw amount in their bank accounts prefers savings account.
It also deals with small amount withdrawn or deposit.