Anne is conducting market research by doing a competitive analysis.
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Answer:
Risk free interest rate is 5%
Y is 15.5% at a Beta of 1.5
X is 0.29 when Y is 7%
Explanation:
Risk free interest is 0.05 which 5% as given in the equation
The average expected return is given by Y
Y=0.05+0.07X
Since Beta is the same as X, when equals 1.5,Y is calculated thus
Y=0.05+0.07(1.5)
Y=0.05+0.105
Y=0.155
Y=15.5%
The value of Beta at an average return of 7% is computed thus:
7%=0.05+0.07X
where X is the unknown
0.07=0.05+0.07X
0.07-0.05=0.07X
0.02=0.07X
X=0.02/0.07
X=0.29
The scenario illustrates that the Beta, which is the risk of investment and the Y , the expected average return are positively correlated.
Answer:
b. all development cost are expensed as incurred
The total amount of money that is brought in by sales
Answer:
The correct answer is E) Enviromental Sustainability
Explanation:
Enviromental Sustainability refers to the usage of resources at a rate that does not cause their depletion.
We can think of the planet Earth as the sum of all resources available in the global economy. When a company says that they want to be enviromentally sustainable, what they mean is that they want to make sure that the resources of the earth are not exhausted, because without resources, there is no possible economy or even survival.
