Answer:
7.6%
Explanation:
In this question, we apply the Capital Asset Pricing Model (CAPM) formula which is shown below
Expected rate of return = Risk-free rate of return + Global Beta × (Global Market rate of return - Risk-free rate of return)
= 4% + 0.90 × (8% - 4%)
= 4% + 0.90 × 4%
= 4% + 3.6%
= 7.6%
The (Global Market rate of return - Risk-free rate of return) is also called global market risk premium
Answer:
<u>Laggards are in the late 16 % of the cycle of adoption of the technology.</u>
Explanation:
- As technology adoption is a sociological model that is based on the acceptance of the newer product or innovation that defines the demographic characteristics.
- Innovators, early adopters, early majority and late majority and laggards are all the demographic and psychological group of people that adopt the model based on the consideration as the flip phone are rarely available and they tend to have lower demands in the market hence only fewer companies keep those models.
- Even though selling them at a lower price they are taken up by laggards as these are ones that usually take the flip phones based on their perception and the trends in the market.
Answer:
Answer is below
Explanation:
Factors that may cause the demand curve to shift outward are:
1. changes in tastes and preference: when there is a change in taste for example commodity A, whereby people tend to enjoy its taste, the will be an outward shift in the demand curve of commodity A
2. income of the consumers: when the income of consumers increases, they tend to buy more of a certain commodity they enjoy, hence there will be an outward shift in that commodity's demand curve
3. prices of substitute or complement goods: for example, an increase in the price of a substitute will cause consumers to demand more for a particular commodity, hence, outward in demand shift curve occurs
4. expectations about future conditions and prices: when there is speculation about an increase in the price of an essential commodity or goods consumers enjoy, people tend to buy more in a given moment, hence there exists an outward shift in the demand curve
5. Population of consumers in the market: increase in the population of consumers of a certain commodity is directly proportional to an increase in demand of that commodity, hence there exists an outwards shift in the demand curve.
Answer:
1) 0.0900
2) 0.0884
3) 0.0836
4) 0.0756
5) 0.0644
6) 0.0500
Explanation:
WBills Rbils Windex Rindex R-portfolio α-portfolio α²-portfolio (A=2)
(A) (B) (C) D(8%+5%) AB+CD C20%
0.0 5% 1.0 13% 0.13 0.20 0.04 0.0900
0.2 5% 0.8 13% 0.114 0.16 0.0256 0.0884
0.4 5% 0.6 13% 0.098 0.12 0.0144 0.0836
0.6 5% 0.4 13% 0.082 0.08 0.0064 0.0756
0.8 5% 0.2 13% 0.066 0.04 0.0016 0.0644
1.0 5% 0.0 13% 0.050 0.00 0.0000 0.0500
Utility level values of each portfolio for an investor with A=2
1) 0.13 - (0.5 ×2×0.04) = 0.0900
2) 0.114 - (0.5×2×0.0256) = 0.0884
3) 0.098 - (0.5×2×0.0144) = 0.0836
4) 0.082 - ( 0.5×2×0.0064) = 0.0756
5) 0.066 - ( 0.5×2×0.0016) = 0.0644
6) 0.050 - ( 0.5×2×0.000) = 0.0500
