Answer:
Risk free rate(Rf) = 1.5%
Market return(Rm) = 8%
Beta(β) = 0.8
ER(P) = Rf + β(Rm – Rf)
ER(P) = 1.5 + 0.8(8-1.5)
ER(P) = 1.5 + 0.8(6.5)
ER(P) = 1.5 + 5.2
ER(P) = 6.7%
Alpha = Annual average return - ER(P)
= 7.2% - 6.7%
= 0.5%
Explanation:
In this case, we will calculate the expected return on the stock based on CAPM. Thereafter, we will calculate alpha by deducting the expected return from annual average return.
Answer:
Production and consumption are at the same time.
Explanation:
A basic difference between a good and a service is that the consumption and production of a service take place at the same time. While good can be produced at some point in time and consumed later. Unlike goods, services cannot be stored in inventory.
That is why unlike a good, consumers can be more involved in the production of a service. This provides greater satisfaction to the consumers.
Answer:
D. Using customer's past purchase history to send information about related products and services the customer may be interested in
Explanation:
Data mining is the process whereby large pre existing databases are examined with the aim of generating new information. It is the extraction of usable data from a larger set of data. Company usually use this process to turn raw data into useful information that can be applied to their daily activities.
In the case of marketing, data mining helps in extracting useful information from a customer's purchase history in order to identify useful information on goods or services the customer may be interested in or attracted to.
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Answer:
With simple interest = $1,604.2
With compound interest = $1,642.454
Explanation:
Data provided in the question:
Amount lend = $1,234
Time = 3 years
Rate of interest, r = 10% = 0.10
Now,
<u>With simple interest :</u>
Interest = Principle × Rate × Time
= $1,234 × 0.10 × 3
= $370.2
Therefore,
Total amount paid = Principle + Interest
= $1,234 + $370.2
= $1,604.2
<u>With compound interest :</u>
Amount to be paid = Principle × ( 1 + r )ⁿ
= $1,234 × ( 1 + 0.10 )³
= $1,234 × 1.1³
= $1,234 × 1.331
= $1,642.454