Answer:
If a price is too high to clear the market, that means the quantity of supplies have exceeded the amount that is demanded.
Explanation:
Have a great summer :)
The best answer to this question would be (A) True.
This is because culture will impact how your potential customers view your product. Even in the same country, different approaches should be used if the cultural divide is too vast between one area to the other.
An approach that works, for example, for urban customers in New York City, might not work with another set of urban customers based in Tokyo. Recognizing what works for each market means that you will be able to reap the best outcome possible from all of them.
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%
