Answer:
Explanation:
The Sharpe ratio is given by:
(Return of portfolio - risk free rate) / standard deviation.
When the dollar is worth less in relation to currencies of other countries, you are more likely to purchase American-made product.
<h3>How currencies are valued ?</h3>
Collective supply and demand determine the value of a currency. Numerous variables, such as interest rates, inflation, capital flows, and money supply, have an impact on supply and demand. Currency is most frequently valued using exchange rates.
<h3>What makes a currency more valuable?</h3>
When there is a high demand for a currency, it will appreciate in value. Conversely, when there is a low demand for a currency, it will depreciate in value.
A controlled floating exchange rate is what determines the current exchange rates between nations. With a managed floating exchange rate, each currency's value is influenced by the policies taken by its central bank or government in terms of the economy.
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Answer:A. Increase the cost of capital used to evaluate the project to reflect the project's higher-than-average risk.
Explanation:Risk is any a action or activity that has the potential to lead to or cause damage or losses to lives,funds,properties etc.
There are different types of risk which includes financial risks (which deals with losses in funds or investment), business risk(a risk directly involved with the business), non Business risk(risks that are associated with other aspects of society and are not business related).
WHEN THE A PROJECT HAS A HIGHER RISK COMPARED TO OTHERS THE BEST ACTION TO TAKE IS TO INCREASE THE COST OF CAPITAL USED TO EVALUATE THE PROJECT RO SHOW THAT THE PROJECT HAS A HIGHER RISK.
Answer:
B. 12%
Explanation:
Revenue in 2016 = $ 90 million
Revenue in 2017 = $ 100.8 million
Growth during 2016-17 = 100.8 million - 90 million
= $ 10.8 million
Same growth should persist for 2017 -18 which implies the gowth rate forecasted is same as growth rate during 2016-17.
Forecasted growth rate from 2017 to 18
= Growth rate during 2016-17
= (100.8 - 90)/90)
= 0.12
Therefore, we would forecast a revenue growth rate of 12%.