Answer:
a. True
Explanation:
from the CAPM formula we can derive the statemeent as true.
risk free = 0.05
market rate = 0.12
premium market = (market rate - risk free) 0.07
beta(non diversifiable risk) = 0
Ke 0.05000
As the beta multiplies the difference between the market rate and risk-free rate a beta of zero will nulify the second part of the equation leaving only the risk-free rate. This means the portfolio is not expose to volatility
Answer:
b. III and IV
Explanation:
Diego has expected life of 6 month due to his liver disease. He wants to sell his life insurance policy to a company. If he sells the policy, when Diego dies the company will receive all the benefit and will be taxed at ordinary income tax rate. The proceeds are not tax free. In case if Diego sells the policy to his cousin, he will also be taxed on proceed. The tax will be ordinary income tax on the benefit from life insurance policy.
It would be D!
when you’re working in a group, you’d want everyone to participate, put commitment into the work, and do their parts as individuals in the group.
Hi,
I believe that the answer to your question is "A nonmonetary incentive or "Case observation"
Just a guess :)
