Answer:
Reward to risk ratio = (Expected return - Risk free rate) / Beta
Reward to risk ratio of Y = ( 0.145 - 0.056) / 1.2
Reward to risk ratio of Y = 0.089 / 1.2
Reward to risk ratio of Y = 0.0741666
Reward to risk ratio of Y = 7.42%
Reward to risk ratio of Z = (0.093 - 0.056) / 0.7
Reward to risk ratio of Z = 0.037 / 0.7
Reward to risk ratio of Z = 0.0528571
Reward to risk ratio of Z = 5.29%
Security market line (SML) reward-to-risk ratio is the market risk premium itself which is 6.6%.
Stock Y has a reward-to-risk ratio that is higher than the market risk premium, it is currently under-valued in the market. Similarly, since stock Z has a reward-to-risk ratio that is lower than the market risk premium, it is currently over-valued in the market.
Answer:employee support group.
Explanation:employee support group are voluntary, employee-led associations where team members join together in light of common interests, backgrounds, or demographics.
A group of employees that join together in the workplace based on shared interests, backgrounds, or life experiences. Employee resource groups help provide support for both career and personal development.
Answer:
D. is imperfectly competitive, but not all imperfectly competitive markets are monopolistically competitive.
Explanation:
Monopolistic competition may be seen as a variety of competition that determine the characteristics of variety of industries that are familiar to consumers in their day-to-day lives. For instance, restaurants, hair salons, clothing, and consumer electronics are all monopolistic competitive market but not all imperfectly competitive markets are monopolistically competitive.
Answer:
Please see attached explanations
Explanation:
a Incremental profit would be
= $160,000 - $100,000
= $60,000
b. The firm's break even point will increase by 27.8 units if it makes the change.
c. The new situation would have more business risk than the old one due to;
• Increase in fixed costs
• Business risk will also increase in new situations due to increase in break even point.
I would say C is the correct answer.
