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Nutka1998 [239]
3 years ago
10

Which statement is correct?

Business
1 answer:
AlladinOne [14]3 years ago
5 0

Answer:

An underpriced security will plot above the security market line.

Explanation:

A security market line is plotted from capital asset pricing model(CAPM) equation that shows relationship between return of a stock and beta coefficient. An underpriced security means that it is sold below its intrinsic value hence its rate of return is higher than the return calculated by CAPM. Since the existing rate of return is higher, it will plot on the right side of the security market line which means it's above it.

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Which of the following factors will increase GDP and also achieve sustained​ growth?
Salsk061 [2.6K]

Answer:

The correct answer is the letter d. Advances in the technical knowledge used in production.

Explanation:

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3 years ago
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Answer:

Differential cost of producing Product C = $0

Explanation:

<em>A company should process further a product if the additional revenue from the split-off point is greater than than the further processing cost.  </em>

<em>Also note that all cost incurred up to the split-off point (the cost of crushing) are irrelevant to the decision to process further .  </em>

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Sales revenue after the split off point (Product C)                    58

Sales revenue at the split-off point  (Product B                        <u> 33</u>

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Further processing cost                                                            <u>  (25)</u>

Differential cost of Product C                                                       <u>  0</u>

Differential cost of producing Product C = $0

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Answer:

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